Group Members:

Isma Nizam

(m12bba013)

Maria Nazeer

(m12bba019)

Zartasha Shaukat

(m12bba057)

Kehkashan Sakhawat

(m12bba067)

BBA (BNF)
8TH Semester
HCBF(University Of Punjab)

Problems of importers

ECONOMY OF PAKISTAN AT A
GALANCE

26th Largest World Economy (PPP)

6th Largest World Population with GDP
per Capita of $ 1,427
133rd rank for GDP per Capita with
36% undocumented economy
Next Eleven Countries in world
emerging Economy _BRICS
Foreign Currency Reserves in 2014

Major Sector of Economy

Primary Sector
1. Agriculture..24% of GDP & 44% of employment
2. Mining.0.5% of GDP
Secondary Sector
1. Industry..24%of GDP
.Automotive industry
.Construction material
. Information technology
.Textile
.Others
1. Largest user of CNG

Services Sector
1. Telecommunication Services
2. Housing
3. Finance
4. Transportation
Minor Sector
1. Energy
2. Pharmaceuticals & Chemicals

EXPORT PERFORMANCE OF PAKISTAN

Quantum of exports is $28.3 billion

Major Exports
Textiles
Vegetables
Leather
Animal farming
Food & beverages
Other manufactured items

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Import PERFORMANCE OF PAKISTAN

Quantum of exports is $47.4 billion

Major imports
Food
Machinery
Transportation Vehicle
Fertilizers
Refined and crude oil

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Balance of Payment
Systematic

record of total outflow of foreign

currencies and receipts of foreign payments

Up-to date state

$23.4 billion deficit(2014-15 economic survey
of Pakistan)

Tanks, artillery,
Civilian
Sports
apparel
aircraft &
missiles,
(complete)
gear
rockets, guns & ammunition

Fastest Growing

imports of
Pakistan
$753.1
million

Major Imports From Asian

Countries
Boilers, Machinery and
mechanical appliances,
Telecommunication appl. and
equip., Plastic and articles

Boiler machinery,
Organic Chemicals,
Petroleum products
and oil

Road vehicles, Boilers,

Machinery Iron and Steel,
Telecommunication
Animal or vegetable
fats and oil, Petroleum
products and oil,
Manmade fiber and
yarns, Paper,
paperboard

Animal or vegetable
fats and oil, Organic
chemicals, Plastic &
Telecommunication
equips

EOC Report
Pakistan is the 67th largest export economy in the world and the
106th most complex economy according to the Economic
Complexity Index (ECI).
In 2014 Pakistan imported $47.4B, making it the 53rd largest importer
in the world.

Substitute For Imports

Ethanol a viable substitute

for oil in motor vehicles
Food crops like sugar cane and maize can be
turned into ethanol for use as a substitute for Oil in
automobiles
The surging import bill on oil can be reduced through
the promotion of this new initiative as substitute for
motor vehicles oil & it can save foreign exchange of
estimated 500 million dollars

substitute

Ethanol

oil in motor
vehicles

Coal as Substitute
for Gas
We have to use our coal reserves to convert
into natural gas.
Coal gasification and coal-to-liquid are some
proven technologies which can be successfully
employed in Pakistan to reduce dependence on
imported oil and natural gas.
Coal gasification offers one of the most
versatile and cleanest ways to convert coal into
Gas.

Substitute

Biodiesel commercialization
in Pakistan
The majority of the worlds energy needs are
supplied through petrochemical sources,
coal and natural gas.
Biodiesel defined as a substitute for, or an
additive to Diesel fuel that is derived from the
oils and fats of plants and animals

Compressed Natural Gas (CNG)

as Inter Fuel Substitution

Hydrocarbon Development Institute of

Pakistan (HDIP) has pioneered the use
of environment friendly Compressed
Natural Gas (CNG) in road transport
As an economically viable inter-fuel
import substitution in petroleum sector.

AS

P roblems o f I mporters

C ustom E xams

Causes extra costs and

uneasiness
Document Review
Vehicle and cargo inspection
system
Physical & unloading inspection
Demurrage
Sampling & laboratory test
occur at the port areawhen the containers
are held longer than the agreed standard
free timefor the use of their shipping
containers
Causes additional costs and delayed cargo

D amage

Transportation damage
Lifting up damage
If any damage happens, the claim to the
right parties should be done in a timely
manner according to the claim procedures

Per Diem

charge applied by the steamship lines for

the use of their equipment
This late return of the empty containers
will cause additional charges to the
importers

Detention
charged by thetruckers due to
excess time taken by the consignee
for unloading the cargo
Missing Documents:
If the original B/L or other important
document are lost it will:
affects the freight release process of
the shipments
might cause extra charges like
demurrage to the importers

Custom Clearance Problem

If your consignment get late clear
then:
shipping costs could go up by
hundredsor thousands of dollars
Other extra costs to importer business

Strikes
work stoppage caused by
the mass refusal of
employees towork
Resulted into delayed
shipment and extra costs

Overweight / Unevenly distributed cargo

If weigh shown in document is less than the actual
then:
The container needs to be taken to a facility to be
opened up so that the cargo inside the container can
be stuffed evenly on each axle and this causes extra
costs to the importer.

Penalties
Failure to comply terms and rules
Fine for submitting incorrect information to
custom

Holidays
Congestion due to busy
transportation.
Shipment gets delayed
Extra costs like demurrage, per
diem etc

Lost Containers at the

terminal
Time taken for search of
container at big ports
Out of control ____delayed
shipment & extra costs

Opening of LCs
Difficult for less creditworthy
importers
Causes illegal means to import.
Terrorism
Uncertainty in shipment arrival
Higher cost payable by importer
of affected areas

Prevalence of Absent Labor

Strike of labor
Financial loss of concerned parties

Currency Risk
Financial loss if price high of foreign currency

With a little precaution, it is possible to be prepared

with a contingency plan for overcoming unforeseen

circumstances. Some of these issues are not in our
control, so it is important that the entire transportation
plan be accompanied with a contingency plan for
managing any obstacle that might come in the way