Q.

1
Pakistan has three trades remedy laws namely: Anti-Dumping Duties Ordinance, Countervailing Duties Ordinance, and Safeguard Measures Ordinance. These provide a system of defense against imports into Pakistan. These laws are frequently characterized as contingent protection laws because the import relief is provided only under certain conditions. According to the Ministry of Commerce and Trade Development Authority of Pakistans Import Policy Order 2008, following items are not allowed to import in Pakistan. 1. 2. Translation of the Holy Quran without Arabic text. Goods (including their containers) bearing any words or inscription of a religious connotation, the use or disposal of which may injure the religious feelings of any sect, class or group of people in Pakistan. Goods (including their containers) bearing any obscene pictures, writings, inscriptions or visible representations. Anti-Islamic, obscene or subversive literature. Any goods containing ingredients or parts which may be repugnant to the injunctions of Islam as laid down in the Holy Quran and Sunnah of the Holy Prophet (Peace be upon him), including pigs, hogs, boars and swine, and their products and by-products. Dyes containing benzidine. Hazardous wastes as defined and classified in the Basel Convention. Alcoholic beverages and spirits (excluding ethyl alcohol of industrial grade), including brewing and distilling dregs and waste, wine lees and argol. Any edible product not fit for human consumption. Factory rejects and goods of job lot/stock lot or substandard quality except those mentioned below:a. Job lot and stock lot of items where the customs duty is zero percent and raw material that attract duty up to 5%. b. Waste, seconds and cutting of iron and steel (excluding stainless steel) sheets and plates in cut length or coils minimum width 50.8 cm (20 inch) and minimum length 121.9 cm (48 inch); tin sheets and plates of one side not less than 45.7 cm (18 inch); and stainless steel sheets, coils, plates and circles of AISI-200, AISI-300 and or AISI-400 series only. Cotton waste (H.S.No. 5202.0000). Granules made by the recycling of plastics waste. c. Re-rollable scrap.- The scrap having width not exceeding 1000 mm with thickness 6 mm and above and a length not exceeding 2.5 meters, consisting of mill rejects and crop ends of ingots, billets, slabs, blooms and including cuttings of sheets and plates, pipes and bars whether in pieces or in rolled strips, cuttings of ships plates, used and pitted rails and girders, whereas in case of girders and pipes length shall be 1.5 meter. Vetches (whole grain, split or any other form). Cocoa leaves, poppy straw and cannabis herbs. Cannabis resin and cannabis balsams. Opium. Concentrate of poppy straw; extracts and tinctures of cannabis.

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16. 17. 18. 19. 20. 21. 22. 23.

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27. 28. 29. 30. 31. 32. 33. 34. 35. 36. 37. 38.

Other (benzidine and its derivatives). Paraphence-tole carbamide and 5-Nitro-2 proxy-aniline in both tablet and powder or crystalline forms. Allyl-isothio-cyanate. Caffeine citrate. Insulin preparations and syringes in 40 I.U. strength. Fireworks. Other (pyrotechnic articles) Cinematograph film wholly or partly exposed or developed in any Pakistani or Indian language, with or without a sound track and depicting Pakistani or Indian way of living either silent or dubbed, or in which leading roles have been played by Pakistani or Indian actors or actresses. Retreaded tyres. Used pneumatic tyres. Furskins and manufactures thereof, other than raw furskins and tanned or dressed furskins of sheep, lambs, rabbits, goats, kids thereof, calf and other animal fur not internationally prohibited . Clothing (of asbestos). CFC gas based refrigerators, deep-freezers and other refrigerating cooling, chilling equipment and CFC based compressors of these equipment. Brewery machinery/machinery for alcoholic beverages. Pressure horns and parts thereof. Tanks and other armoured fighting vehicles, motorized, whether or not fitted with weapons and parts of such vehicles, other than armoured security vans. Military weapons, machine-guns, sub-machine-guns, automatic rifles of all calibers and other military fire-arms and projectiles (other than revolvers and pistols). Revolvers and pistols of prohibited bores and of calibers higher than 0.46 inches bore. Arms of prohibited bores (including semi-automatic rifles of 7.62 mm and rifles of 8 mm to 9 mm bores) and arms of calibers higher than 0.22 bore rifles. Other (fire arms and similar devices which operate by firing of an explosive charge). Other arms (for example, spring guns, air guns or gas guns, pistols and truncheons). Ammunition and parts of ammunition, except ammunition for weapons of nonprohibited bores. Gambling equipment.

Q.2
Exporting of Services
A fundamental shift has been taking place in the world's economy over the past 25 years for most developed economies and multinational firms. While economic well-being will always be closely linked to the efficient production, consumption and trade in goods, it is also increasingly being determined by the productivity, application, and utilization of information, as well as less tangible services - either throughout the industrial process, or as a separate activity. The following sectors have grown most rapidly from technology development and have particularly high export potential: 1. Travel and tourism. The largest single category within the U.S. service sector involves, quite simply, all businesses involved in its related services. Recreational and

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cultural services are also included. The industry is diverse and includes services in transportation, lodging, food and beverage service, recreation, purchase of incidentals consumed while in transit, and traveling on commercial airlines. Transportation services. This sector includes aviation, ocean shipping, inland waterways, railroads, trucking, pipelines, and intermodal services as well as ancillary and support services in ports, airports, railyards, and truck terminals. It is the indispensable service for international trade in goods moving all manufactured, mining, and agriculture products to market as well as transporting business and leisure travelers around the world. Architectural, construction, and engineering. The vast experience and technological leadership of the U.S. construction industry, as well as special skills in operations, maintenance, and management, frequently give U.S. firms a competitive edge in international projects. Some U.S. firms with expertise in specialized fields, such as electric power utilities, also export related design, construction, and engineering services. Education and training services. Management training, technical training, and English language training are areas. The export market for this training is almost limitless, encompassing most industry sectors, both products and services. Banking, financial, and insurance services. Financial institutions are very competitive internationally, particularly when offering account management, credit card operations, and collection management. Insurers offer valuable services ranging from underwriting and risk evaluation to insurance operations and management contracts in the international marketplace. Entertainment. Filmed entertainment and recorded music have been very successful in appealing to foreign audiences. Film companies license and sell rights to exhibit film in movie theaters, on television, and on videocassette. Music has been successful in both English-speaking and non-English-speaking countries. Information services. This sector includes companies which generate, process, and export electronic commerce activities such as e-mail, funds transfer and data interchange, as well as data processing and network services, electronic information services, and professional computer services. Professional business services. This sector includes accounting, advertising, legal, and management consulting services. The international market for these services is expanding at a more rapid rate.

Exporting of Goods
Goods exports refer to all movable goods (including nonmonetary gold) involved in a change of ownership from residents to nonresidents. The category includes goods previously included in services: goods received or sent for processing and their subsequent export or import in the form of processed goods, repairs on goods, and goods procured in ports by carriers. Data are in current U.S. dollars.

Q.3
Export growth is important because of its effect on internal trade and economic stability. Even more, the rate of economic growth and the distribution of income and wealth in a country are closely related to export growth. Growth of an economy is directly related to exports. If exports increase at a faster pace as compared to imports, nothing can stop an economy from being a developed one. On the other hand, the instability in exports can adversely affects the process of economic development. Lower exports mean low foreign exchange and lower foreign exchange in turn means a small purchasing capacity of a nation in the international market. Fluctuations in export earnings introduce uncertainties in an economy. These uncertainties influence economic behavior by adversely affecting the level and efficiency of investment and in turn have a negative effect on growth. In addition to the above factors, export growth is also important because of its effect on internal trade and economic stability. Even more, the rate of economic growth and the distribution of income and wealth in a country are closely related to export growth. The concept of trade stability or instability may be based either on a countrys aggregate trade in comparison with the cost of the world or on a binary country pair comparison. Such binary pairs may be large depending upon the number of trading allies. Export instabilities have been claimed to affect economic growth both positively and negatively. Fluctuation in exports earnings introduces uncertainties in the economy. The other side of the picture is that a greater amount of uncertainty on export proceeds also brings about risk aversion. People tend to invest more in their own country and the economy starts improving gradually. But this is not much observed these days. Export fluctuations, on an average, act as a hindrance to the stability and growth of the under developed countries. A high degree of export instability may be expected to deter investment on a number of grounds. It is also expected to raise borrowing costs, because export fluctuations tend to cause balance of payment complexities. This ultimately leads to low confidence of people in the process of maintenance of the exchange rate. Export instability stimulates inflation. The simple rule of the thumb is that as inflation rises in a country, the products and services tend to be costlier, with minor exceptions, of course.

Q.4
The trade deficit occurs when the value of imports is greater than the value of exports. This could reflect a lack of competitiveness or high levels of consumer spending on imports. Reducing the value of the exchange rate can help to reduce a trade deficit. When the value of the Pound falls it makes UK exports more competitive, increasing quantity demanded. A depreciation also makes imports more expensive, reducing demand for imports and foreign holidays. Therefore, we would expect a depreciation to improve the trade deficit. However, it is not that simple. It depends upon the elasticity of demand. 1. If demand for exports is very inelastic. A fall in price (10%) may lead to only a small fall in demand (1%). Therefore, the value of exports will decrease because the lower price decreases revenue. However, if demand for exports is elastic. then a fall in price will lead to a bigger % increase in demand. Therefore, there will be an increase in export revenue. The Marshall-Lerner condition states that a depreciation in the exchange rate will improve the current account deficit.

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The effect of a depreciation also depends on other things. 1. 2. Inflation? If a depreciation causes inflation, then exports may not become more competitive. Therefore, demand will not increase Global Recession. If the global economy is in recession, demand for exports will fall, even if the Pound depreciates. Alternatively, if UK is in a boom our demand for imports will keep rising. See: terms of trade and trade deficit example of how depreciation in Sterling had little effect on trade deficit.

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Q.5
Major Imports
Petroleum Petroleum products Machinery Plastics Transportation equipment Edible oils Paper and paperboard Iron and steel Tea

Its major import partners are: European Union, China, Saudi Arabia, United Arab Emirates and United States.

Major Exports
Textiles Clothing Leather goods Cotton fiber Rice Wheat Oranges Mangoes Cement Furniture Tiles Marble Sports goods (renowned for footballs/soccer balls) Surgical instruments Vegetables

Its major export partners are: Asia and Middle East, India, Russia.

Q.6
Pakistan reported a trade deficit equivalent to 1838 Million USD in June of 2012. Historically, from 2003 until 2012, Pakistan Balance of Trade averaged -835.6 Million USD reaching an all time high of 9.6 Million USD in August of 2003 and a record low of -1878.0 Million USD in October of 2008. Pakistan exports rice, furniture, cotton fiber, cement, tiles, marble, textiles, clothing, leather goods, carpets and rugs and food products. Pakistan imports mainly petroleum, petroleum products, machinery, plastics, transportation equipment, edible oils, paper and paperboard, iron and steel and tea. Its main trading partners are: European Union, China, The United Arab Emirates and The United States. This page includes a chart with historical data for Pakistan Balance of Trade.