Mixed picture of Pakistan's imports in August 2019.

• Author: Kazmi, S. Kamal Hayder

Byline: S. Kamal Hayder Kazmi

Foreign trade is important to the Pakistan's economy because country needs to import various products to complete the increasing demands resulting from its economic recovery and development. Pakistan is not a major trading player in the international trade. Pakistan's imports have generally been greater than its exports.

According to the Pakistan Bureau of Statistics (PBS), main commodities of imports during August, 2019 were Petroleum products (Rs. 76,215 million), Natural gas, liquified (Rs.46,779 million), Electrical machinery and apparatus (Rs. 38,133 million), Plastic materials (Rs. 25,347 million), Palm oil (Rs. 23,792 million), Iron and steel (Rs. 23,695 million), Petroleum crude (Rs.23,328 million), Iron and steel scrap (Rs. 19,415 million), Power generating machinery (Rs. 15,564 million) and Medicinal Products (Rs. 13,692 million). It is also recorded Pakistan's imports are highly concentrated to few items namely, Machinery, Petroleum Products, Chemicals, Transport Equipment, Edible oil, Iron and steel, Fertilizers and Tea which account for greater than 70 percent of total imports.

Pakistan's objectives in negotiating bilateral and regional (preferential and free) trade agreements are mainly to seek better market access by addressing tariff and non-tariff measures, to further facilitate and promote trade, investment and to improve the comparative value of Pakistan's exports. During mid 90's Pakistan's foreign policies are primarily aimed at strengthening trade relations with Asia. The Government of Pakistan is pursuing a policy of export-led growth for which the issues of market access are important. As a consequence, an orchestrated trade policy has been carefully designed. Pakistan has adopted a conscious strategy to slowly increase regional blocks in international trade particularly with Asian states. China, Japan, Malaysia, Saudi Arabia, Singapore and Indonesia are among those Asian countries who showed a much pronounced arise in trade with Pakistan during present years and almost 35 percent to 40 percent of Pakistan's...