Foreign trade of Pakistan

Pakistani exports in 2005

Pakistan engages in both bilateral and multilateral trade agreements with various countries and international organisations. It is a member of the World Trade Organisation and participates in the South Asian Free Trade Area agreement, as well as the China–Pakistan Free Trade Agreement. The variability in Pakistan's trade deficit can be attributed to several factors, including fluctuating global demand for its exports, domestic political instability, and the effects of periodic droughts on agricultural output. For the fiscal year 2013/14, the trade deficit stood at 7.743 arab US$, with exports totaling 10.367 arab US$ and imports reaching 18.110 arab US$ during the period from July to November 2013.

Pakistan's export landscape is primarily characterised by the export of manpower within the Indian subcontinent, along with cotton textiles and apparel. Meanwhile, its imports consist of petroleum and petroleum products, chemicals, fertilisers, capital goods, industrial raw materials, and consumer products.

On 12 December 2013 (INC: 21 saura agrahāyaṇa 1935), the European Union granted Pakistan the GSP Plus status, which was effective until 2017. This status allowed Pakistan to export 20% of its goods to the EU market at a zero tariff and an additional 70% at preferential rates. The decision came after the European Parliament passed a resolution in favor of this status by a vote of 406 to 186. Foreign trade plays a crucial role in Pakistan's economy, particularly because the country relies heavily on imports for various products. However, this dependency has resulted in a persistent trade balance deficit for Pakistan.

Exports[edit]

During the fiscal year 2023-2024, Pakistan's merchandise exports saw a notable increase. According to data from the Pakistan Bureau of Statistics, exports grew by 10.54%, reaching approximately US$30.64 arab (around ₹25.57 Kharab). ^{[a 1]} ^[1] This marks an increase from the previous year's exports, which amounted to US$27.72 arab. This growth underscores a positive trend in Pakistan's export performance within the global market.^[2]

In 2023 and 2024, Pakistan's export portfolio includes a diverse range of items such as textiles and apparel (including house linens, knitwear, and non-knit men's suits), leather goods and footwear, carpets and floor-covering textiles, various types of rice (notably basmati and parboiled), raw cotton, yarn, refined petroleum, as well as medical and surgical instruments. Additionally, the country exports fruits and vegetables (such as mangoes and onions), salt, fish and fish preparations, corn, wheat, sesame seeds, plastic materials, and clothing items like jerseys, pullovers, cardigans, trousers, kitchen linen, and bed wear, along with organic chemicals.

These exports are directed towards significant markets including the United States, China, the European Union, the United Kingdom, and the Middle East, highlighting Pakistan's global trade connections and the variety of products it offers to international consumers.^[3]

List of trading partners[edit]

The following is a list of Pakistan's main trading partners in the 2017.

Country	Percentage of imports	Percentage of exports	Percentage of total trade
China	31	11	16.9
EU	10.4	18.2	13.0
United Arab Emirates	12.1	8.5	10.9
Saudi Arabia	12.2	8.5	9.0
United States	3.7	13.6	6.7
Kuwait	6.3	0.07	4.4
India^[4]	4.07	1.67	3
Malaysia	9	0.9	2.9
Japan	3.6	1.6	2.9
Iran	3.4	1.8	2.9
Afghanistan	0.3	7.6	2.8
Singapore	4.1	0.3	2.8