Discuss the export performance of Pakistan or discuss the trend of foreign

trade in Pakistan

Export Performance :After partition the foreign trade of Pakistan was also affected like other sectors of
the economy. But after the establishment of some industries exports were
increased. We can study the export performance under three different periods :

1. Performance From 1948 to 1971 :Before the partition internal and external trade was controlled by the English Rulers
so foreign trade was affected very badly after 1947. In 1948 the government of
Pakistan increased the import of consumer goods t remove the shortage in the
country. It expanded the volume of exports. About 60% of the total exports of
Pakistan were purchased by the India in the early years.

2. Demand of Devaluations Refused :In 1949 Pakistan refused to devalue the currency and India refused to purchase the
Jute and Cotton of Pakistan. So Pakistan decided to develop the trade relations with
other countries like U.K, France, Germany and Italy.

3. Effects of Korean War :The exports of Pakistan's raw material increased due to Korean war. India
government also decided to import the Jute of Pakistan. But the prices of Pakistan's
exports increased. The exports value decreased due to fall in the prices of raw
material in the world market.

4. Devaluation of Currency :The government of Pakistan reduced the value of Pakistani currency upto 30% in
1955 to encourage the exports. There was a continuously fall in exports except one
year after devaluation.

5. Martial Law 1958 :-

In 1958 Martial Law was imposed and government introduced export Bonus
Scheme. It increased our exports but due to heavy imports our balance of trade
remained unfavorable.

6. Second Five Year Plan Period (1960-65) :In the second five year plan due to liberal import policy our balance of trade
remained unfavorable.

7. Third Five Year Plan Period (1965-70) :In this period also export performance remained very poor due to many reasons like
political disturbance and increase in imports. Later on the war of 1965 created more
problems for exports.

8. Separation of East Pakistan :After the separation of East Pakistan export policy was revised by the government.
Following measures were taken to increase the exports of the country.
1. Export Bonus Scheme was abolished.
2. Currency was devalued upto 131%.
3. Multiple exchange rate system was finished.
4. Trade agreements were made with Muslim Countries.
The above measures increased the exports in 1971-72 to Rs. 10161.2 million. There
was a marginal increase in the value of exports upto 1976-77.

Following were the main causes of low exports :

1. Nationalization of industries.
2. Frequent changes in fiscal and monetary policies.
3. Floods.

During the 1977-81 there was an increase in the exports. However in 1981-82 the
increase in as fallen upto 17%. It has the following reasons :
1. The consumption of goods increased at home and exports reduced.
2. The demand of our exports reduced in the world market.
3. Fall in the terms of trade.
4. Unfavorable Global conditions.
5. Afghan Refugees Problem.

Relinking of Dollar in 1982 :The government of Pakistan adopted various measures like relinking of dollar to
improve the exports. In the year 1987-88, Pakistan earned 4.4 billion dollar from
exports. Cotton and cotton product is the major source of foreign exchange. The
present government is also stressing more on the export of manufactured goods
and value added goods. The total value of export during 1993-94 was 6.75 billion
dollars. The trade deficit during 1995-96 was 3.75 billion dollars. During the year
1998-99 the trade deficit was 1.65 billion dollar and 1.60 in 2000-2001.
After studying the exports performance we can say that now the share of
manufactured goods is increasing in the exports and it is good sign for Pakistani
economy.

Discuss the major exports of Pakistan and discuss their importance

Major Exports of Pakistan :Following are the important exports of Pakistan :

1. Cotton :It is the most important cash crop of Pakistan. Now due to its importance our farmer
in increasing its cultivation. In 1993-94, 8.0 million bales were exported to other
countries. Pakistan earned 3.083 billion dollars foreign exchange in 1993-94. govt.
has also allowed the exporters to purchase cotton directly from the Ginners. China,
Hong Kong, Japan are the buyers of raw cotton. Pakistan faced the cotton crises in
1995 due to low product.

2. Rice :Pakistan is earning a lot of foreign exchange by exporting rice to Middle East
countries. Pakistan has monopoly in the trade of Basmati Rice. In 1993-94 Pakistan
earned 8214 million dollars. Pakistan shall have to pay special attention to the
quality and cost of rice. India and China are our competitors in the world trade of
rice.

3. Cotton Clothe :It has an important position in the exports of Pakistan. Pakistan exports billion
dollar's cotton cloth to various countries like U.K and Japan. we can increase the
Textile exports by using the latest technology.

4. Cotton Yarn :During the last five years Pakistan has doubled the production of cotton yarn. no
doubt the spinning capacity of the cotton mills is very low. Pakistan has earned
million dollars every year by exporting cotton yarn. The main buyers are Japan,
Hong Kong and Germany.

5. Carpets :Pakistan exports the hand made and machine made carpets. Pakistan has a tough
competition with China and India. Pakistan earned million dollars every year by
exporting it is West Germany, Switzerland, U.S.A, France, U.K and Italy.

6. Leather :In the field of exports Pakistan leather industry is playing very important role. Our
leather industry has improved the quality of product according the world market
standard Italy, Japan, Spain are the main buyers.

7. Vegetable and Fruits :The export performance of vegetable and fruits is very poor. Because processing
and grading facilities are not available in Pakistan. Vegetables and fruits are

exported to the middle east and gulf countries. Onion, chillies, pees and potatoes
can be also exported to various countries.

8. Sports and Surgical Goods :Various other items like sports surgical goods and jewellery is also ex[ported to
other countries. During 1995-96 Pakistan earnest million dollars by exporting these
goods.

9. Fish and Fish Product :The export of fish and fish product export is increasing day by day. Pakistan earns
million dollars foreign exchange by exporting it every years.
What is cottage and small scale industry? discuss its importance in the economic
development or What are the main advantages of cottage and small scale industry

Cottage Industry :It means the industry is run in the home usually with the help of family members.
Simple implements are used and workers are not paid wages.

Small Scale Industry :In the small scale industry the male members of the family along with hired labour
work together. In small industries, electric power and improved machines are mostly
used in subcontinental the firm employing less than 10 person are classified as
small. In subcontinental Carpet industry , poultry farming, bee keeping, tailoring and
furniture making is included in the cottage and small industry.

Importance :There is a shortage of capital and technical skill in subcontinental. It is not possible
to establish the heavy industries. While it is very easy to increase the number of
small scale industries. The examples of Japan, Hong Kong and Taiwan are before us.
Following are the main advantages of small scale industry in subcontinental :

1. Increase in Industrial Product :There is a shortage of manufactured goods in our area. We spend a lot of foreign
exchange on the import of these goods every year. So we should increase the small
scale and cottage industry to remove the shortage of these goods.

2. Increase in Employment :The rate of unemployment is increasing day by day. To control unemployment it is
necessary that we should increase the small scale industries because these are
labour intensive. Our farmer can also easily work in small scale scale industry. It is
not possible to provide Govt. jobs to all the unemployed people. It may also increase
the self employment.

3. Increase in Foreign Exchange Earnings :the various kinds of goods like carpets and sports sold in the international market.
We earn a lot of foreign exchange by exporting these goods.

4. Use of Industrial waste :The waste of large scale industries like cotton and steel can be used by the small
scale industry. In this way we can save a lot of capital.

5. Provides Employment to Women :Our women is engaged in the cottage and small scale industry and increasing the
production. Because in our society women can not work with other men in the
factories. We should increase the number of cottage industries to make the female
sector a real asset of the nation.

6. Increase in The Income :Increase in the production of goods on small scale increase the income of the
people. The rise in income improves the standard of living. In rural areas there is
great need of small scale industry.

7. Cheaper Production :The small scale industry is labour intensive while labour is cheap in subcontinental,
so the production of small scale industry is cheaper. Due to low prices people
purchase more goods and market expands.

8. Proper Distribution of Wealth :The small scale industry increases the income of the people and reduces the gap
between rich and poor. We can reduce the poverty by expanding the small scale
industry.

9. establishment With Small Capital :We can establish these industries with small capital. In subcontinental most of the
people are poor, so they can start the production with small capital.

10. Development of Backward Areas :We can develop backward areas by establishing the small scale industry in these
areas. It will remove poverty from backward areas.

11. Reduction of Population Pressure :The development of small scale industry reduces the pressure of population on land
and increases the income of the people.

12. Reduction in Migration :The unemployed labour force is migrating to the other countries. If we expand the
small scale industry, it can serve the nation instead of serving the other countries.