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An Analysis of International Trade of Pakistan: With a Focus on Exports

Hanif, Muhammad (2018): An Analysis of International Trade of Pakistan: With a Focus on Exports. Published in: Paradigms: A Research Journal of Commerce, Economics, and Social Sciences , Vol. 12, No. 1 (2018): pp. 22-30.

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Pakistan is facing a persistent trade deficit, resulting in foreign debts—leading to compromise on national policies and sovereignty. This study analyzes international trade of Pakistan with a special focus on exports. The analysis is conducted by various lenses including goods traded, trading partners (in exports as well as imports), trading regions (including Australian, Asian, African, European and American regions) and economic cooperation organizations including Organization of Islamic Cooperation-OIC, Economic Cooperation Organization-ECO, and Association of Islamic Developing countries (D-8). International trade Data is extracted from State bank of Pakistan for 12 years (Jul-03 to Jun-15). Findings suggest Pakistan has trade linkages with multiple countries, across various regions, however, the volume of exports is significantly low than potential, as well as, than the volume of imports—resulting in trade deficit. The major import partners are China, UAE, Singapore, Saudi Arabia and Kuwait, while major export-partners of Pakistan are United States of America, China, Afghanistan, United Kingdom, United Arab Emirates and Germany. Pakistan needs to capitalize on less-expensive young population (rising in skills), low cost (indigenous) raw material, basic industrial infrastructure and agricultural and natural resources, etc. to achieve higher economic growth and exports. Policy makers need to encourage exports in less focused regions including Centrel Asia, Middle East, Africa, Australia and South America. To the best of author’s knowledge, this is first ever effort to present a comprehensive analysis of international trade of Pakistan and suggest measures to improve the state of affairs, in recent years.

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