Pakistan

5/6/2010

|Comparative Management | Class of Spring 2010 |

Trade Development in Pakistan

Final Report

Submitted to:

Sir Toshio Fujita

Submitted by:

Abeera Tahir

Batool Yusuf

Kanwal Kella

Mehwish Ghulam Ali

Ruqaiya Ramzan

Saba Salim

Date:

6TH May 2010

Contents

Overview 5

Trade Balance 8

Imports/ Exports Strategy & Measures 9

Import Strategy 9

Reducing cost of doing business 9

Facilitation for Overseas Pakistanis 9

Regulatory 10

Export Strategy 10

Increasing competitiveness of Exports 10

Export Diversification 11

Emphasis on Agriculture 11

Institutional Support 11

Increasing Market access through extensive Trade Diplomacy 12

Different regional trade agreements of Pakistan 13

1. South Asian Association for Regional Cooperation (SAARC) 13

2. Economic Cooperation Organization Trade Agreement (ECOTA) 15

Success and effectiveness of Regional Trade Agreements of Pakistan 17

Trade Promotion through tariff reduction 17

Exploitation of trade complementarities 17

Increased market access 18

Limitations of Regional Trade 21

Bilateral Trade Agreements 25

1. Pak-China Free Trade Agreement 25

2. Pak-Iran Preferential Trade Agreement 27

3. Pak-Malaysia Free Trade Agreement 29

4. Pakistan-Sri Lanka FTA 30

Global Trade of Pakistan 32

1. Pakistan and USA 32

2. EU and Pakistan 36

3. Pakistan-OIC and Pakistan GCC 39

4. Pakistan and Asean 42

5. Pakistan and Australia 44

6. Pakistan and Russia 45

7. Pakistan and New Zealand 48

Pakistan’s Major Competitors in World Trade 50

1. China 51

2. India 52

3. Bangladesh 55

4. Vietnam 56

Challenges 58

Recommendations 61

References 67

Overview

Historically, over the last five decades specifically during the period of 1949 to 2000, exports grew with an average of 10.4% per annum and imports grew at an average of 9.7% per annum. However during last six years (2002 to 2009) exports grew at...