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Selected Trade and Manufacturing Data for Pakistan – A Brief Analysis

Each year the Research Unit of the Pakistan Business Council (PBC) publishes selected trade figures of Pakistan and briefly analysis the likely impact of a liberalized trade regime on domestic manufacturing. The PBC supports free trade and strongly believes that trade as opposed to protectionism leads to domestic industry becoming competitive and able not only to defend its domestic market share but also to compete in regional and global markets. However for this competitiveness to develop, domestic industry needs a level playing field in its own markets. In Pakistan, domestic manufacturers have to contend with massive under-invoicing & mis-declarations in imports and outright smuggling in the garb of transit trade.

A simple example of prevailing unfair practices is reflected in the US$2.0 billion difference in the reported figures of actual Chinese exports to Pakistan as reported by China and the figures reported by Pakistan Customs of the value of Chinese imports into Pakistan. Similar is the case of transit trade where large quantities of basic raw material are being imported by Afghanistan for which there is no industry in that Country.

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