Exports Of Pakistan Research Articles

Export boost of Textile Industry of Pakistan by availing EU’s GSP Plus

Pakistan is commonly known as agriculture based economy where vast areas of cultivated lands are producing cotton. This enabled to establish and flourish textile industries in Pakistan, therefore Pakistan is vital part of cheap and quality based textile products exporting country. Recently Pakistan is granted European Union's Generalised Scheme of Preferences (GSP) Plus status as a year from January 2014 by European Union because of that Pakistan's Textile exports surged to $14.22 billion in the fiscal year 2013-2014. This study main focus is on EU’s GSP Plus for textile industry of Pakistan to explore the effects and impact on the international trade, export and economy of Pakistan. The various issues and problems pertaining to the policy, strategy, trade, export and taxes are analyzed and discussed to come up with suggestions. Pakistan Textile sector made $14.22 billion (2013-2014 Jul-Jun) compared to export value of the previous fiscal year, reaching from $13.69 billion in the previous year (July 2012, June 2013). The country's textile exports have been shown in growth of 3.81% in fiscal year (2013 2014 Jul-Jun) as compared to fiscal year of (2012-2013 Jul-Jun). The key motive behind the growth of textile exports is the national GSP plus successful from Jan 2014 because of textile export to the EU which is increased by 18% to reach $ 5 billion figure for the first time in Pakistan history because of the GSP plus status granted by the European Union, and textile exports to the left of the globe fell by 3.5%. Seeing this textile export Pakistan government is ready for a 5-year program to grant subsidies for the textile sector. Under the latest planned textile strategy (2014-19), textile industry will be rewarded. Followed by the strategy, textile exports will increase over the next five years, $ 26 billion, in addition to the creation of employment opportunities. Keywords: European Union's GSP Plus, Textile Export, Fiscal Year, Textile Industry of Pakistan. JEL Classifications: C01, F13, F41, H12, L67, Q41

Contribution of Fish Production and Trade to the Economy of Pakistan

Pakistani waters are rich in a variety of aquatic organisms. Of those organisms, fish has earned its importance due to its immense export and revenue potential. In fact, exports and imports of a country serve as an indicator of its economic standing. There are two schools of thoughts for boosting a country’s economy. One is export led growth (ELG) and the other import led growth (ILG). The objective of this study was to investigate trend of fish production, export and import of Pakistan during the last two decades. Extensive review of literature was done; numerical data was obtained from FAO Fisheries and Aquaculture Department. Minitab 17 Software was used to make graphs for meaningful data representation. The results show that fish production has increased in Pakistan during the last two decades starting from 22,255 tons in 1991 and reaching up to 82,448 tons in 2010. During this period highest production, 93,820 tons, was observed in 1994. Both the fish commodities, dried, salted or smoked and frozen excluding fillets and meat, also have increased in their production; however the production of latter commodity surpassed during the last five years of our study. Export in terms of quantity and value of the former fish commodity declined while the latter commodity increased during the same period. Import figures have shown that there is an increasing trend in the import of the latter fish commodity reflecting its potential demand in Pakistan. This study has highlighted the contribution of fisheries production and trade to Pakistan’s economy. By paying more attention to fisheries sector, the country’s production and export of fish and fishery products can be increased, and the country’s economy as a whole can be boosted.

Patterns of Export Diversification: Evidence from Pakistan

This paper examines historical trends in the diversification of exports in Pakistan, using the Hirschman index to quantify the degree of export diversification. We analyze the structure of exports through the lens of ‘traditionality,’ for which we construct industry-specific, average cumulative export experience functions, i.e., a traditionality index of all 2-digit export industries in Pakistan from 1972 to 2012. This is useful in distinguishing between traditional and nontraditional export industries. We also study the degree of structural change in the export sector since 1972 by recalculating the traditionality index based on five-year interval periods. The cross-industry variance of this index is then used to calculate the structural change index. Periods for which the index values are low are interpreted as periods during which the export industries experienced uniform patterns of export growth (and thereby no structural change). Periods for which the index values are high are interpreted as periods during which the export industries experienced varied patterns of growth, thus undergoing structural change. Finally, we explore the determinants of structural change in exports by looking at variables such as GDP growth, export growth, the real exchange rate, the growth rate of world trade, trade liberalization, and the degree of product concentration in the country’s export base.

ARIMA MODEL BUILDING AND FORECASTING ON IMPORTS AND EXPORTS OF PAKISTAN

From the day one, mankind has always been interested in to the future. As the civilization advanced with growing sophistication in all phases of life, the need to look in to the future also grew with it. Today every government, public private organizations, as well as an individual would like to predict and plan for the future. In order to attain a better growth in the economy of a country, modeling and forecasting is the most important tool now a day, this can be done by one of the statistical technique called a Time series analysis. In this paper we tried to build a time series model called ARIMA (Auto Regressive Integrated Moving Average) model with particular reference of Box and Jenkins approach on annually total Imports and Exports of Pakistan from the year 1947 to the year 2013 with useful statistical software R. Validity of the fitted model is tested using standard statistical techniques. The fitted model is then use to forecast some future values of Imports and export of Pakistan. It is found that an ARIMA (2, 2, 2) and ARIMA (1, 2, 2) model looks suitable to forecast the annual Imports and Exports of Pakistan respectively. We also found an increasing trend both in case of Imports and Exports during this study.

Collection and marketing of high value pharmaceutically and therapeutically important plants from the Swat District, Pakistan

In 2012, existing practices in trading high value minor crops (such as medicinal and aromatic plants) from the Swat district, Pakistan, were analyzed. The goals of the study were to: (1) examine the current status of the high value medicinal plant trade in Pakistan and (2) investigate the linkages in the market chain from collectors in the Swat district to final consumers. Within the Swat District, the focus was on the collection pattern of medicinal plants as an economic activity and its likely destinations in national or international markets. Herbal markets in major cities of Pakistan were surveyed for current market trends, source of material, import and export of herbal material, price patterns and market requirements. Collectors are mostly women and children of Middle Hill tribes and whose earnings are generally done for supplementary income through this activity. Pakistan exports of high value plants generate over US $10.5 million annually, with over 70% of the supply coming from Swat District. However, the market share of the high value plants from the Swat District due to the unreliable and often poor quality of the material supplied the length of the supply chain and poor marketing strategies. These problems could be addressed by improving the knowledge of those at the start of the supply chain, improving linkages among all steps in the chain and developing sustainable harvesting practices. Key words: Trade pattern, medicinal plants, import, export, economic growth.

Reducing defects in textile weaving by applying Six Sigma methodology: a case study

Textile and clothing account for more than 50% of Pakistan's exports. However, total share of Pakistani exports in the global textile and clothing market is less than 1%. One of the reasons of this low share is the manufacturing of less value–added products; another reason is the poor quality of some product categories. Although the country produces some of the world's best quality yarns due to well–organised spinning sector, the quality of some fabric categories produced in the country is not as good because of the sector being less–organised and poorly managed. The objective of this study was to explore the application of Six Sigma methodology for reducing the defect percentage in fabric manufacturing sector. A representative textile weaving unit was selected for this study and it was found that by the suitable application of Six Sigma tools, the sigma level was improved from 2.2 to 3. Profit per month was observed to be increased worth $26,000.

Effects of Trade Liberalization on Exports, Imports and Trade Balance in Pakistan: A Time Series Analysis

Using time series data, the paper empirically analyzes the effects of trade liberalization on exports, imports and trade balance in Pakistan for the period 1981/82 to 2007/08. It concludes that trade liberalization stimulates both exports and imports with the effect being greater on latter than on former thereby worsening the trade balance. Other variables, that is, real exchange rate, domestic and foreign incomes, terms of trade and foreign exchange market distortions affect exports, imports and trade balance in the theoretically expected directions. Inclusion of interaction terms indicate that liberalization stimulates both price and income elasticities of exports, imports and trade balance. These results have important policy implications for degree of trade liberalization in Pakistan.

Dynamics of Exports and Economic Growth at Regional Level: A Study on Pakistan's Exports to SAAR

It is well recognized in literature that countries having a better export performance also enjoying the better growth and vice versa. Above said statement raises a striking question: is the growth (GDP) and having strong linkages? The aim of present study is to test the above said question at regional level exports, especially in context of Pakistan’s to South Asian Association for Regional Cooperation (SAARC) to gauge the effectiveness of regional trade agreement. Study contributes literature in terms of regional level to test economic growth and exports relationship. Results revealed that Johansen cointegration test failed to affirm long run relationship between GDP and Pakistan’s to SAARC, hence, short-term relationship exist. Granger causality revealed unidirectional nature of causality from GDP to Pakistan’s to SAARC. The regulatory authorizes of developing nations should focus on the measures to improve their growth to gain the benefits from Regional Trade Agreements (RTAs).

Relationship between Fluctuated Exports and Economic Growth of Pakistan

As manufacturing units, small medium enterprises, multinational organizations, entrepreneurship basedorganizations are considered as the engine of growth, barometer, building block of the economy as well as thebackbone of the economy of any country, exactly like that exports of country is considered as an indicator or asource which reflects the internal economic stability and capability of a national progress. Pakistan is a countrywhich is full of national resources, reserves and talent but due to manifolds factors like domestic issues, badgovernance, unachieved goals, insufficient industrial infrastructure, less skilled labor, brain drain, lack ofexposure and access into the international market are the most important factors behind the stagnant andfluctuated exports of Pakistan. So for the purpose to detect the variables affecting exports of Pakistan four of thevariables have been taken as an independent variables and exports is taken as a dependent variable, While Fixedinvestment capital and inflation showed strong significant relationship statistically and explored that to reducethe inflation rate and to increase the fixed investment capital can work as the biggest contributor for the growthof exports and economic development of Pakistan.

Why Pakistan Is Interested To Join Asean

The aim of this paper is to discover the major reasons to Pakistan’s intention to join ASEAN. There are severalreasons to join ASEAN. Improving trade volume is the fundamental account of Pakistan. The study discovers the fact that Pakistan should seek its neighbouring countries to enhance its volume of trade. ASEAN could be a major market for Pakistan. It has proved in this study that Pakistan Southeast policy has been successful and beneficial for last several years but still Pakistan has to do much more to improve its exports to the satisfactory levels. The exports of Pakistan have not been impressive. The study shows Pakistan has great opportunity to enhance its cooperation with ASEAN countries by making strong efforts on government levels as well as private levels. The study also reveals that trade is not only reason for joining ASEAN but also to meet the security challenges. After 9/11 Pakistan emerged as front line partner in war against terrorism which created many implications for Pakistan. By improving its relationships with ASEAN countries Pakistan can better combat this problem. Another fact is why Pakistan has not succeeded to become member of ASEAN Regional Forum? The study discovers that main reason is India which creates hurdle for Pakistan to become a member of ARF. Indian is major market for ASEAN nations and member of ARF and strong good will among these nations. But Pakistan would have to accelerate its efforts to improve its image. The study also shows that contains for ASEAN and Pakistan cooperation’s. This study alsoproves that Pakistan has still to do more effort towards strengthening its ties with these nations.

The Export Supply Response of Mangoes: A Cointegration and Causality Analysis

This paper analyzes the impact of major factors on the export of mangoes from Pakistan. We use a cointegration approach and error correction mechanism applied to data for the period 1970–2005. Mango exports are regressed against the index of relative prices of mango exports (2000 = 100), the quantity of domestic mango production, real agricultural gross domestic product (GDP), the length of all-weather roads, and international standardization, i.e., the impact of the World Trade Organization agreement. The results of the augmented Dickey-Fuller test reveal that all the data series are I(1). Applying Johansen’s test shows that the highest elasticity coefficients are found for mango production in the short and long run, followed by real agricultural GDP. The Granger causality test points to the bi-directional causality of mango exports with the relative price index and allweather roads, and unidirectional causality with real agricultural GDP and mango production. The study recommends promoting proper orchard management, developing the appropriate infrastructure, and stabilizing export prices to increase mango exports from Pakistan.

Impact of exchange rate volatility on sectoral exports of Pakistan: an ARDL investigation

PurposeThe purpose of this paper is to explore the impact of exchange rate volatility at sectoral level on the exports trade of Pakistan. All the sectors involved in the export trade (proposed by the State Bank of Pakistan, by commodity), were used to study this relationship at a more minute level.Design/methodology/approachQuarterly data regarding research were collected over the period 2003 to 2010 from databases of State Bank of Pakistan and International Monetary Fund financial statistics. The bound testing approach proposed by Pesaran et al., was used to study the relationship between sectoral export and exchange rate volatility, while augmented Dickey Fuller (ADF) and Phillips Perron tests were used to test the unit root of series and GARCH,proposed by Bollerslev, was used to study exchange rate volatility.FindingsThe results show that exports are negatively influenced by exchange rate volatility and relative prices while positively affected by foreign income. This relationship holds for all sectors where bound testing revealed the existence of long‐ run relationship, although some equations results were not statistically significant.Practical implicationsThe paper's findings can be used to form such policies which result in a stabilized and competitive exchange rate, so that Pakistan's exports can be increased.Originality/valuePrevious studies have been conducted on aggregated data set for exports in the Pakistani context, which hinders pertinent information; however this information is possible by studying disaggregated data. The paper fills a research gap by taking sectoral level data, to divulge the behavior of individual sectors against exchange rate volatility.

“Freeing” Trade in South Asia

This paper discusses economic integration in the South Asian region using an India-centric approach. It suggests that the gains for India withdrawing its tariff on imports from Pakistan and Bangladesh hugely outweigh the losses for the country. It uses a bilateral trade approach, analyzing the India-Pakistan and India-Bangladesh trade relationships. The India-Pakistan relationship shows Pakistan's exports to India contribute much less to India's total imports than to Pakistan's GDP. The benefits of India unilaterally withdrawing tariffs, thus, are substantial. The India-Bangladesh trade relationship, despite having many complementary characteristics, is not very well established. Both the countries will gain immensely if India opens up its borders to their exports. These gains will outweigh the minor losses for India which will be compensated for by its increased goodwill. Economic integration is important to maintain stability in this region and the two bilateral relationships described above are crucial in ensuring this. (JEL Codes: F13, F14, F15)

Whose trade statistics are correct? Multiple mirror comparison techniques: a test case of Cambodia

Ideally, statistics on the goods traded between two countries should be captured by each side’s respective customs office. Country A’s recorded exports to Country B should be identical to Country B...

Export Diversification Model - a Strategic View for Economic Development with reference to Pakistan

The objective of this study is to examine the causes of the falling trend of Pakistan exports and to suggest measures for diversification of export in terms of countries and commodities. During the research study it came to light that Pakistan's export suffered lack of diversification both on account of countries and commodities. According to Government's survey Pakistan's export is concentrated about 62% on cotton related products (refer Table 1 & Table 2). This review has helped us in a realistic assessment of exports and projection of views that may result in export enhancement and diversification. Towards this effort, diversification strategy model has been suggested and it is expected that the strategy when implemented would not only cause least constraints at different stages of export diversification but would also facilitate the large scale promotion of export. Keyword: Diversification Strategy, Social development Agricultural product, earnings, Concentrated structural transformation. I. Introduction: The progress and prosperity of any country depends upon several factors such as scientific development, social development but the pivotal role is played by the economic development which has the potential to positively revolutionize the whole system of progress and lead the country towards the goal of success and economic prosperity. In early period Pakistans economy was based on agriculture which played an important role in the general export earnings. Food exports account for 17 per cent of all exports of the country. More importantly, fifty three percent of Pakistans total exports comprise textile products which use cotton as raw material. The share of raw cotton exports is small at 1.2 per cent. Among some of the factors responsible for retarding the economic development, the main factor or reason is that Pakistan has not made any progress worth mentioning in the field of export. The important fact is that the value of the exports from Pakistan has not caught up with the value of its import. The prospects for the rapid transformation of the economy of Pakistan seem to be to redistribute the real resources in both the industrial and agricultural sectors for the production of value added items specially those which can be exported. The transition in economic management hinges upon adoption of best international practices as in vogue in countries like South Korea and Taiwan. A further component of this new strategy would call for a production of trained labor force including the high level personnel specialized in latest skills. The study focuses itself on measures required for Export Diversification. Without diversification and continuing on the same pattern, Pakistan cannot sustain its economy for long. The logic is further augmented by the fact that Pakistans yearly export has always lagged behind its imports. In fact the trade deficit has widened over the years. Thus there is an immediate need to increase exports in a manner that it is able to exceed imports and the only way that this objective can be achieved is through both commodity and country diversification. The study as such aims to explore such ways and means whereby export diversification could be achieved. This would mean addition of a larger number of products and countries to represent major contributes in the total export value in the not so far distant a future. This should be seen in the context of WTO after the advent of which Pakistans current exports would be fiercely attacked by other third world countries who would try to push their products into newer territories to sustain themselves and to be able to obtain or maintain a positive trade balance, Pakistan needs to shift the pressure on cotton related items to other commodities because even the countries which are major trade partners are importing cotton related items to a large extent. This means that commodity diversification needs to be given first priority.

The expenditure-GDP nexus: evidence from a panel of SAARC 7-countries

The paper investigates the casual relationship between government expenditure, GDP and exports for Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka for the period between 1960 and 2010. Using cointegration and Granger causality, the results suggest that there exists bidirectional causality between exports and economic growth in India. For Bangladesh, Maldives, Nepal and Pakistan there is unidirectional causality from exports to economic growth. The unidirectional causality from government expenditure to economic growth is found in Bangladesh and Maldives, whereas the reverse causality is found in Bhutan and Pakistan. For Maldives and Sri Lanka Government expenditure causes exports, whereas for Pakistan export causes government expenditure. The panel analysis finally suggests and existence of unidirectional causality from export to government expenditure and from economic growth to government expenditure.

Estimation of Import and Export demand Functions Using Bilateral Trade Data ___ the case of Pakistan

We estimated the import and export elasticities of Pakistan trade with traditional trade partners and some Asian countries to see the dynamics of Pakistan trade from 1973 to 2008. OLS results suggest that income is the principal determinant of exports and imports. Pakistan exports are cointegrated with Japan and USA while the imports are cointegrated with UAE and USA. Pakistan imports and exports are cointegrated with Bangladesh and Sri Lanka but not with India and China. Income and exchange rate are both important determinants of foreign trade. Continuing its trade with traditional partners and making efforts for greater market access to USA and EU, Pakistan should make efforts to increase its trade with Asian countries notably China and India because both are fast growing economies and have huge market.

Determinants of Exports of Pakistan: A Country-wise Disaggregated Analysis.

Given the importance of international trade and export performance in economic growth, this study attempts to examine the determinants of exports of Pakistan, using a time series data over the period 1975-2008. A simultaneous equation approach is followed and the demand and supply side equations are specified with appropriate variables. This is a country-wise disaggregated analysis of Pakistan versus its trade partners and the estimation strategy is based on two approaches. First we employ the Generalised Methods of Moments (GMM), which is followed by the Empirical Bayesian technique to get consistent estimates. The GMM technique is believed to be efficient for time series data provided the sample size is sufficiently large. In case of small samples, the estimates might not be precise and might appear with unbelievable sign and insignificant magnitudes. To avoid the sample bias and other problems, we employ the Empirical Bayesian technique which provides much precise estimates. The factual results obtained via the GMM technique are a little bit mixed, although most of the coefficients are found to be statistically significant and carry their expected signs. In order to compare and validate these results, the Empirical Bayesian technique is employed. This offers considerable improvement over the previous results and all the variables are found to be highly significant with correct sign across the countries concerned with the exception of a few cases. The price and income elasticities in both the demand and supply side equations carry their expected signs and significant magnitudes for the trading partners. The findings suggest that exports of Pakistan are much sensitive to changes in the world demand and world prices. This establishes the importance of demand side factors like world GDP, Real exchange rate, and world prices to determine the exports of Pakistan. On the supply side, we find relatively small price and income elasiticities. The results reveal that demand for exports is relatively higher for countries in NAFTA, European Union and Middle East regions. The study recommends particular concentration on the trade partners in these regions to improve the export performance of Pakistan. Keywords: Exports, GMM, Empirical Bayesian Method, Pakistan

Estimation of import and export demand functions using bilateral trade data: The case of Pakistan

We estimated the import and export elasticities of Pakistan trade with traditional trade partners and some Asian countries to see the dynamics of Pakistan trade from 1973 to 2008. OLS results suggest that income is the principal determinant of exports and imports. Pakistan exports are cointegrated with Japan and USA while the imports are cointegrated with UAE and USA. Pakistan imports and exports are cointegrated with Bangladesh and Sri Lanka but not with India and China. Income and exchange rate are both important determinants of foreign trade. Continuing its trade with traditional partners and making efforts for greater market access to USA and EU, Pakistan should make efforts to increase its trade with Asian countries notably China and India because both are fast growing economies and have huge market.

Impact of Globalization on SMEs Export Business and Economy of Pakistan by Using CGE Model

This research investigates the Globalization impact on the SMEs export by using Computable General Equilibrium model. The main objectives of this research are to provide detailed overview of economic reforms in the last decade by using the General Equilibrium Model. Data were collected from 300 SMEs business exports in Pakistan by using simple random technique. Structural questionnaire is used as a basic tool for measuring export potential. Data from developing countries were collected through secondary sources and data were analysis by using Gem-Software. It was revealed that from last decade, globalization has positively revolutionized the SMEs export business the economy of Pakistan. The Global trade analysis Purdue (GTAP) model is used to analyze the possible impact of Globalization on Pakistan’s economy in a multi-country, multi-sector applied General Equilibrium frame work. After employing the simplified static analysis framework based on simulations reveal that Globalization and FDI have influenced positively on the economy of Pakistan. The general inflation rate is decreased and living standard is increased in urban areas. Employment opportunities are also increasing due to the investment made by the FDI and as for as cultural context is concerned, Pakistani people are more reluctant to reduce the traditional cultural barriers. On the contrary side, other consumer items like leather-made and cotton-made garments will expand after the FTA and consumer surplus will increase. This perspective enables us to identify new challenges in the global economy and to identify the multiple routes through which power and resource inequalities are reproduced within it. More positively, it helps to identify new opportunities and routes to challenging these inequalities. The application of this perspective to the impact of the rapidly-growing economy in real increase in terms of trade.