Understanding the Pattern and Structure of Pakistani Trade

Abstract

The main objective of this research is to understand the pattern and structure of Pakistani trade from 2012 to 2016. Twenty countries have been selected, accounting for 80 percent of the country's trade. The data from 2012 to 2016 has been taken from the website of UN Comtrade. Averages and percentages are calculated for a better exposition of the data. The figures in the research are in US dollars. Twenty countries that traded with Pakistan were selected. The countries that trade more often with Pakistan are selected. The selected countries are classified on the basis of their per capita income. These countries have been categorized into low, middle, and high-income countries. Exports are categorized into textile and textile products, agricultural products, minerals, and chemicals, including pharmaceuticals and others, and imports are categorized into food, agricultural products, heavy machinery, and chemical products. The results show that total exports of the selected commodities to middle-income countries have decreased by 34 percent, although these economies are growing faster than others. Similarly, imports from middle-income countries decreased. Pakistan imports increased because of the demand for heavy machinery for CPEC. Pakistan imports machinery for about $5 billion from low and middle-income countries. Pakistan shares a common border with two Afghanistan, Iran, India, and China but has minimal trade with them. China and India are the two large emerging economies and part of BRIC (Brazil, Russia, India, and China), and countries worldwide are taking advantage of their growth except for Pakistan. The punch line is that Pakistan has to take advantage of its borders and export products with a competitive advantage to its neighboring countries. It will create and promote livelihood and development opportunities in the country.