1. CPEC
Increase the volume of trade between Pakistan and china
Take full advantage of preferential trade agreement(PTA)
and free trade agreement (FTA)
Increase export to china, recently export to china is
$3.14 billion
High Widen Karakorum way and open new economic
corridor from china to Gwadar
2. Expand trade with Afghanistan and it help both countries to
play their role in post-2014 Afghanistan
Expand trade with Russia by providing trade route till Gwadar
port
Development of infrastructure along Pakistan
Enhance trade among Pakistan, China, Gulf States, Central
Asia and Africa
GDP growth of Pakistan likely to increase enormously
(Presently being 4.1)
Export or Import on equal basis because Pakistan import more
goods than export.
3. What Is Trade Deficit?
The amount by which the cost of a country's imports
exceeds the value of its exports.
4. Causes
• Current account deficit: more money is leaving the
country than flowing into it.
• Domestic companies: when domestic company
manufactures a lot of its products in other countries.
5. Trade Deficit of Pakistan
• PKR 237.4 billion in October of
2016
• 226.9 billion a year ago.
• Exports rose 2.1 percent to PKR
183.7 billion
• while imports went up 3.5
percent to PKR 421 billion.
6. Cause
s
• High imports of energy.
• Increase in heavy debt servicing and decreased
developmental expenditures is a reason for trade deficit in
Pakistan.
7. How To Develop The ExportSector?
• Stage 1 ‘factor’-driven economies, where countries compete
primarily on the use of unskilled labor and natural resources and
companies compete on the basis of price as they buy and sell basic
products or commodities
• Stage 2 ‘efficiency’-driven economies, where growth is based on
the development of more efficient production processes and
increased product quality.
• Stage 3 ‘innovation’-driven economies, where companies compete
by producing and delivering new and different products and
services by using the most sophisticated processes.
