In this article, the concept of ‘trading partners’ will be unpacked. Moreover, Pakistan’s position in the international market and the issue of trade deficit faced over the years will be briefly discussed. The main focus will be on trading partners and exports imports Pakistan does with them.
The concept of trading partners
Trading partners are those countries with whom a country does foreign trade. In other words, the countries with whom a country does exports and imports are called its trading partners. For example, Pakistan imports mineral oil from Saudi Arabia and exports meat to it. Here Saudi Arabia becomes a trading partner of Pakistan.
Pakistan’s position in the international market
Pakistan does not play a major role in the international market in terms of exports. Pakistan’s share is less than one percent of total global exports. When it comes to imports, Pakistan stands at the top of the list of the countries that heavily rely on imports. However, there are categories of exports in which Pakistan enjoys a strong position.
For example, Pakistan exports (a) textiles products, (b) sports goods, surgical instruments, carpets (c) leather and leather products (d) Fish and Fish products. These account for more than 15%, 2.16 %, 2.13%, and 0.41% in the world market respectively.
Due to limited exports both in terms of quality and quantity coupled with ever-increasing imports, the country has been facing the issue of a trade deficit from day one. By increasing the exports of manufactured and value-added products, a better position in global trade can be secured.
Main trading partners of Pakistan
Main trading partners including exports and imports related to each trading partner are mentioned along with their percentage share in a tabular form given below.
|Trading Partner||Exports to the Trading partners||Percentage Share of exports in 2008-09||Imports from the trading partners||Percentage share of imports in 2008-09|
|Sri Lanka|| |
Source for a percentage of exports and imports: Economic Survey of Pakistan 2008-9