Pakistan is least developed country and its economical situation is not stable from last past 12 years, Pakistan’s trade is decreasing day by day due to this reason Pakistan is asking for international funds so that the country can come out from great depression which has eaten its economy. The government of Pakistan is also not doing anything for trade, they signed many trading agreement but they did not implement any agreement and no agreement has been complete. Pakistan’s international trade is suffering with huge amount; the main reason of decrease in demand of its products is low export quality and political situation. The Political situation of Pakistan is not stable since it’s creating, the government does not have any trading plans and they do not have any clear policies for trade. Pakistan is member for several international trade organizations in which ASEAN, ECO, SAFTA, WIPO and WTO are very famous. (n/a, n/d)[8][9]

Due to its unstable political and economical satiations the trade is decreasing day by day, in 2008 its trade decrease by 5.8%, The major export earning come from textiles industries, cotton and lather products but unfortunately the exports are decreasing day by day the graph of exports is going high and imports are going up which is very dangerous sign for an economy. In 2008 the export were US$ 21.09 billion which decreased to US$17.87 billion in 2009 on other hand the imports also fell from US$38.19 billion in 2008 to US$28.31 billion in 2009. (n/a, n/d)[8][9]

Pakistan Exports Commodities

The major exports of Pakistan are following:

  1. Textiles (garments, bed linen, cotton cloth, yarn)
  2. Rice
  3. Leather goods
  4. Sports goods
  5. Chemicals
  6. Manufactures
  7. Carpets and rugs
  8. Household furnishings
  9. Surgical equipment

Pakistan Exports Partners

The following graph depicts Pakistan’s Exports partners with percentage share as of 2008:

Pakistan Imports Commodities

The major imports of Pakistan are following:

  1. Petroleum
  2. Petroleum products
  3. Machinery
  4. Plastics
  5. Transportation equipment
  6. Edible oils
  7. Paper and paperboard
  8. Iron and steel
  9. Tea

Pakistan Imports Partners

The following graph depicts Pakistan’s import partners with percentage share as of 2008:

How to Improve International Trade of Pakistan

Government of Pakistan trying hard to improve its International trade, but things are not going as they should be, the government of Pakistan has signed many agreements with China, Afghanistan, India, Iran, Malaysia, USA, EU and other countries for the improvement of trade, government of Pakistan is introducing new infrastructure for trading system so that the trading system become crystal clear and the business may expend. (n/a, n/d)

The First thing which government should do they should develop new ports and make sure of all security, the second thing which government should do develop demotic trade and fix the fridge rate all over the Pakistan so that the industries in other provinces can have access to sea and they can easily ship products to other countries, the fridge rate in Pakistan is not fix and there is no such system on which the people may work. (n/a, n/d)

Government of Pakistan need to work on their policies, and they need to work for the better Pakistan, there should be one window operation in all over the Pakistan, and to remove monopoly of freight forwarders new companies should be invited in Pakistan, so a improved business environment may introduce, and. The road and railway infrastructure should be updated so they can achieve their goals. New sea port should be introduced so that the over booking can be reduced, over booking means unavailability of space at ports (n/a, n/d)

A Country cannot survive with funds and loans, the government need to understand this thing, if they need help than ask for the technological support, ask them to invest in Pakistan and the government of Pakistan should introduce an environment of new business where everyone can invest their money. (n/a, n/d)

Advantages and Disadvantages of International Trade

There is always advantages of International trade and it’s always bring profit to country and all the countries of the world know that international is not about trade and anything it’s about building relationship with neighboring countries and important countries. The advantages of international trade is ; International trade enhances the domestic competitiveness, it increases sales and profits, gains the global market share, reduces dependence on existing markets, exploit international trade technology, stabilize seasonal market fluctuations, enhance potential for expansion of your business ,sell excess production capacity and maintain cost competitiveness in your domestic market.(n/a, n/d)

There is no suck disadvantages of international trade, the only thing which a country need to understand is the international trade need time to gain profit, it also need staff to launch international trading and stuff should be professional and new marketing system should be implemented in international trade, need to focus of international market not on local market. (n/a, n/d)


International trade is a very important part of an economy and if a country wants to survive in this world so that country needs to work on its exports need to work on all parts of trade which are interlinked with trade like the fridge rate, trade policies and stable political environment. International trade increase GDP of an economy, and when a country to manage to develop a trading country it need to increase its exports because when the exports are greater than imports it means GDP is increasing and the country is becoming economically stable. The country like Pakistan needs to use its resources which they are gifted by God and use them effectively. The Significance of trade is known to every country and that why the develop countries work more on international trade, they example of Japan , China and India is in front of us, these countries are the trading countries and the people of these countries are happy and the unemployment rate is less than other countries. By Improving International trade the country can fight with unemployment and can remove the inflation from country, when there will be trade the flow of cash will increase and economy will become more stable and value of money will increase. The international trade not only gives benefit to the country itself it also give benefit to those countries that are interlinked with that country. By Introducing international trade a country can make a good relationship with its neighboring countries and regional countries this relationship can help the country to build long term relationship. A country that does not have proper trading system cannot survive in these difficult situations , now a day the agreements among countries are very helpful and can give benefit to nations, these agreements are long term agreements but the benefits are also long term benefits.


The recommendations are very simple and easy, the countries those are not working for international trade new to develop a proper trading system and build a strong healthy relationship with its neighboring countries, and otherwise the survival for that country in these tuff times will be difficult. The least develop countries need to sign free trade agreements with their regional countries so that the trade among these countries may increase and the region may become more stable and the countries may have good relationship with each country. Introducing International trade is a difficult task but not impossible task, it’s only time investment after developments of ports and dry ports a country can earn more profit and they can use the same profit for the development of country like the developed countries.

My recommendation to government of Pakistan is, they need to enhance its trading system and use the natural resources for their own benefit build strong relationship with regional countries like India, Afghanistan, China and Iran when they will have good relationship with these countries they will have more success in business and the country will be more economically stable. Pakistan needs to develop an environment of free trade and provide a secure environment to the inverters so that the inverters may not find difficulty in recovery of his money. When the investor is secured it means the country in moving towards stable position. This thing is only possible if our government may think rationally and become proactive no reactive to economical situations.