Since its very inception, Pakistan’s Industrial development has been affected by many challenges which are either of social, economic or political in nature. This sector is also effected by the trading of the country. A trade deficit exists when a country spends more money yearly on imports than it receives from its exports. Pakistan is suffering from this issue which is ultimately effecting the industries of Pakistan.
Pakistan determined a trade deficit of PRs. 383118 Million in October of 2018. Balance of Trade in Pakistan averaged PRs. -38525.09 Million from 1957 until 2018, reaching an all-time high of PRs. 6457 Million in June of 2003 and a record low of PRs. -452668 Million in June of 2018.
What are exports?
The term export in global trade means the sending of goods or services produced in one country to another country. The seller of such goods and services is said to be as an exporter; the overseas buyer is referred to as an importer.
What are Imports?
An import is a good brought into a sovereignty, especially across a national border, from an external source. The country bringing in the good is called an importer. An import in the receiving country is an export for the selling country.
Interrelationship between Trade (Imports ; Exports) and Industry
Business is divided into two categories: industry and trade. Practically both of them are closely related to each other. They are inseparable. They are the parts of the whole business system.
Industry cannot exist without trade and trade cannot exist without industry. Because every producer has to find his market for his products to sell. But the producer has no direct connection with the buyers or consumers. Hence, industry needs trade.
Industrial Sector id also effected when the imports become more than exports. Due to less exports the consumers and revenue of the industries is limited to national level and some products which can be sold to international market could not reach their ultimate consumer.
Findings ; Discussion
Exports of Pakistan
Food ; Kitchen appliances
Pakistan exports rice, mandarins, salt, mangoes ; cutlery. Ice cream, livestock meat, chicken, powdered milk, wheat, seafood (especially shrimp/prawns), vegetables, processed food items.
Furniture, carpets, rugs, cotton fiber.
Cement, tiles ; marble. Pakistan also exports cements to Asia and the Middle East.
In August 2007, Pakistan also started exporting cement to India to fill in the shortage there caused by the building boom.
Russia is a growing market for Pakistan’s exporters.
Textiles, clothing, leather goods,
Sports goods like hockey, sport kits (eminent for footballs/soccer balls)
Surgical instruments, appliances of electricity, software.
Pakistan’s assembled Suzuki (to Afghanistan and other countries), defense equipment (submarines, tanks, and radars), onyx, engineering goods.
Exports in Pakistan increased to PRs. 248128 Million in October from PRs. 214367 Million in September of 2018. Exports in Pakistan averaged PRs. 43621.33 Million from 1957 until 2018, reaching an all-time high of PRs. 275483 Million in September of 2013 and a record low of PRs. 51 Million in April of 1958.
Figure 1: 5 years Exports status of Pakistan
Imports of Pakistan
Refined petroleum, Crude petroleum ; petroleum gas.
Electric generating sets, broadcasting equipment, telephones, computers, air conditioners, gas turbines, steam boilers, steam turbines, electrical transformers, centrifuges, engines, liquid pumps, cranes, looms, electric motors, refrigerators.
Spark-ignition engines, hydraulic turbines, gas turbines, air pumps, other heating machinery, washing machines and bottling lifting machinery, large construction vehicles, excavation machinery, textile fiber machinery looms, stone processing machines ; rubber working.
Scrap iron, coated flat-rolled iron, hot-rolled iron bars, raw iron bars, iron blocks, large flat-rolled stainless steel, flat-rolled steel, steel bars, steel pipes, iron pipes, other small iron scraps, iron pipe fittings, iron structures, iron fasteners, other iron products, refined copper.
Passengers ; cargo vehicles, cars, delivery trucks, vehicle parts, aircraft parts, tractors, planes, aircrafts, helicopters, buses, bicycles ; scrap parts.
Packaged medicaments, ammonia, cyclic hydrocarbons, halogenated hydrocarbons, acyclic ethers, Polycarboxylic acids, acids carboxylic acids, oxygen amino compounds, nitrile compounds, organic-sulfur, nitrogen heterocyclic compounds, nucleic acids, vitamins, antibiotics, human or animal blood ; pesticides.
Animal/vegetable fats, oils, waxes
Palm oil, soybean oil, margarines, stearic acid, bovine fat, sheep fat ; goat fat.
Plastics, plastic articles
Rubber tires, polythene polymers, ethylene polymers, synthetic rubber, cellulose ; plastic pipes.
Dried legumes, soybeans, tea, nuts, grapes, spices, vegetable products, tomatoes, onions, coconuts, apples and pears other fruits, pepper, nutmeg, spice seeds, corn, rice, sorghum.
Stone ; glass
Glazed ceramics, bathroom ceramics, porcelain tableware ceramic tableware, glass balls cast, float glass, safety glass, glass mirrors, glass bottle, interior decorative glassware, laboratory glassware.
Raw cotton, non-retail pure cotton yarn, light pure woven cotton, jute, non-retail synthetic filament yarn, non-retail artificial filament yarn, synthetic filament yarn woven fabric, unprocessed synthetic staple, unprocessed artificial staple fibers, non-retail synthetic staple fibers yarn, woven fabric of synthetic staple fibers, non-woven textiles, used clothing, metallic yarn labels, plastic coated textile fabric, pile fabric, light rubberized knitted fabric.
Imports in Pakistan increased to PRs. 631246 Million in October from PRs. 549708 Million in September of 2018. Imports in Pakistan averaged PRs. 82108.23 Million from 1957 until 2018, reaching an all-time high of PRs. 676992 Million in June of 2018 and a record low of PRs. 96 Million in April of 1959.
Figure 2 : 5 years Imports status of Pakistan
Pakistan’s Trading Partners
Table 1 : Trading partners of Pakistan
Industries that are facing this challenge of less exports than imports:
The following are the industries that are being effected by the challenge of less exports and more imports:
Table 2: Industries facing the issue
Hesox Digital Private Ltd
Hesox is a company, sort of a Call Centers including Import/Export.
Petro coal Synergies Private Limited
Petro coal Synergies private Limited are a trading firm in Pakistan for the last two decades, trading in cement, Rice, Sugar and Coal. Engaged in multifaceted businesses such as cement, rice, sugar, logistics and telecommunication with foreign firms.
Integrated Engineering Services Private Limited
Integrated Engineering Services (IES) since 1994, has been providing turnkey solutions to process Industries in the science of Instrumentation, Control and Electrical Systems. It work in close association with end-users to deeply analyze the solutions of technological problems.
Noor International has been working as the complete provider of solutions in the field of Healthcare products and Lab equipment since 1989 in Pakistan. Since its formation, the company has strived towards ensuring providence of qualitative products related to medications.
Gadget Geeks Private Limited
Gadget Geek Solutions is one of the market leading importers of aftermarket accessories for all major brands of mobile phones, tablets, mp3, mp4 players, and iPods. It is purely a resource providing you with the very latest, up-to-the-minute information regarding electronic gadgets.
Fareena Corporation Japan
Fareena Corporation was formed in 1996. It mainly deals in used construction machinery including used Japanese cranes, earth-moving equipment, heavy machinery and industrial machinery, Japanese used cars, truck buses.
Flow line Instruments
Supply Industrial Equipment in a competitive world, this company supply process control solutions and products like, Hydraulic, Pneumatic, Instruments, Valves, Pipes & Fittings.
ShamoJee Interiors, Fabrics & Carpets provider. It is one of the oldest Enterprises Established in 1980s as a family run business. Now with over 6 branches in the twin cities, they cater to the needs of the Corporate, Defense and Private Sector.
Aspak has flourished with a vision to become a top-tier global player delivering high quality services through a team of professionals and has achieved huge progress in its operation.
Glitters Corporation is an E-Commerce Company, Founded in June 2016. Glitter.Pk is a growing online shopping mart in Pakistan, it offers wider range of exclusive and luxury watches, clothing, jewelry, cell phone and accessories, electronic accessories that are imported from foreign.
Warren international is a leather garment industry exporting all of its produce to UK.
Unisons established in 2000, has been running on successfully its trade activity for over one decade. Its research activity and selection of reliable and qualified producers: a perfect partner in service of industry.
Systems International was formed in 1990 as solutions provider, integrator, and re-seller supplier. It focuses on direct end-user specific advanced solutions, by putting emphasis on advanced solutions in technological gadgets.
Horizon Aluminum Limited Liability Company
Horizon Aluminum is a trading firm deals in raw materials related to Packaging industry.
It imports electronic and mobile accessories from different countries and sell online in Pakistan through E-commerce.
Babri Steel Industry (Sole Proprietorship)
Babri Steel Industry works as an importer of steel scrap & rerolling material.
Al Sharqi Real Logistics
Al Sharqi Shipping is a logistics company with more than two decades of experience in the moving and delivering of goods.
London Rug Company
It imports the fine Hand Made Rugs.
Smetals and Traders
Smetals is a trading company of Pakistan and which is working from last few years.
Sheikh of Sialkot Private Ltd.
The manufacturer and exporter of leather garments.
Universal Garment (PVT) Ltd
Monitor Export Refinance Loans under pre-Shipment and post-Shipment basis. Controls the Export Shipments as per Bank required against various Export Finance Schemes.
Rex Machinery private Ltd. specializes in imports, distribution and after sales services of industrial garments and leather shoe machines by keeping stocks of spare parts and ancillary materials.
Lords Impex is one of the largest importer of tires and tubes in Pakistan, with a dealership network spanning from Karachi to Gilgit-Baltistan and Kashmir.
Liberty Books Private Ltd. (Magazine Division)
Liberty Magazines provides their customers in Pakistan with the largest range of magazines and newspapers. They’ve been doing this for over 30 years.
Figure 3 : Industries facing the challenge