An Analytical Review of Pakistan’s Foreign Trade

Abstract

This study evaluates the patterns, policies, trends, composition, direction and concentration of trade of Pakistan since 1947-2008. Initially, Pakistan’s trade been limited only few countries such as Saudi Arabia, Hong Kong, United State, Germany, Japan and United Arab Emeritus. Over the time, Pakistan widened her trade to other countries as well such as China, Thailand, Singapore, Malaysia and India. Nonetheless, gradually over the time the situation of export have improved. Since decade of sixties the structure of exports has considerably transformed from raw materials to manufacturing goods. The main imports consisted on fuel and fuel products, capital goods (manufacturing machineries and equipment), automobiles and auto parts, electrical goods, agricultural equipment and inputs (fertilizers, such as phosphate, potassium, sulphur, pesticides and insecticides) and medicines and medical equipment. The historical time-frame shows that Pakistan’s  main import expenditure is on fossil fuels, particularly from Saudi Arabia. Though many economic policies restricted some items to import and become self-sufficient such as wheat, sugar, textile, sports goods and medical instruments. Since independent in 1947 governments have adopted many policies to be self-sufficient or increase the domestic growth of industrial and agricultural growth, but significant results are yet to be achieved. This paper contributes several suggestions also.