Foreign trade figures of Pakistan
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Foreign trade figures of PakistanForeign Trade in FiguresThe share of foreign trade in Pakistan's GDP continues to be low, at 29% (World Bank, 2018). Despite economic and political difficulties, Pakistan has taken steps to liberalise its trade and investment framework as part of commitments made with the WTO, IMF and the World Bank. Textile products accounted by far for the largest share of exports (around 23%), followed by cotton and rice. In regards to imports, the largest item was petroleum products, followed by palm oil, gas and ferrous waste. The United States is the top destination for Pakistani exports (mainly textile), followed by China, United Kingdom, Afghanistan and Germany. China is by far the largest supplier of goods and services in Pakistan, followed by United Arab Emirates, Saudi Arabia, the United States and Indonesia. The free trade agreement (FTA) with China has been detrimental to Pakistani manufacturing exports, which have declined continuously in recent years, and local businesses worry the completion of China–Pakistan Economic Corridor would further increase the share of Chinese products in the domestic market. Pakistan signed a series of trade and financing agreements with Saudi Arabia in February 2019; however, the expected free trade agreement between both countries has yet to be formalised. At the same time, Pakistan and Qatar announced in December 2019 plans to enter into a free trade agreement. Pakistan's trade structure has been structurally in deficit, with exports remaining sluggish on the back of low global demand for Pakistani crops. Trade deficit, including services, widened to USD 32.6 billion in 2018 (WTO) as imports grew much faster than exports. The imports of goods reached USD 60.5 billion in 2018, while the exports were only USD 23.5 billion. Concerning the trade of services, imports were USD 9.6 billion, whereas exports amounted to USD 4 billion. Nonetheless, trade deficit narrowed to USD 11.6 billion in the first half of 2019-20 fiscal year from USD 16.8 billion in the same time a year earlier (Pakistan’s fiscal year runs from 1 July until 30 June) (Pakistan Bureau of Statistics - PBS). However, this was mainly due to lower imports as exports edged up by a mere USD 354 million to USD 11.5 billion during the period despite the depreciation of the Pakistani rupee. At the same time, imports contracted by USD 4.8 billion to USD 23.2 billion. Exports reached 43% of the annual target of USD 26.8 billion while imports were at 45% of the target of USD 51.7 billion.
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