MACRO-ECONOMICS

PROJECT

GROUP MEMBERS
Moazzam Muhammad Saleh
(2047209)
Syed Ghazi Haider
(2047225)
Wahaj Khan
Abstract
Summary documents Our effort to compare 2 developing economies Pakistan and Egypt Import and
export wise while keeping the spotlight on the trade deficit of Pakistan, Finding out what resulted in the
fluctuations regarding imports and export And what according to our understanding Is can be a possible
solution for Pakistan to improve its situation and get out of the trade deficit.

Table of Contents
1. Brief introduction of Egypt as an economy………………………………..
2. Brief introduction of Pakistan as an economy……………………………
3. Steps taken by Egypt to tackle the trade deficit ………………..........
4. Factors that may have affected the trade of Pakistan………………..
5. What steps should Pakistan take to tackle the trade deficit……….
6. Conclusion…………………………………………………………………………………

Introduction
1. Egypt
With the GDP word nearly 394 billion U.S. dollars Egypt is the second best African economy
in one of the best in the Middle East. Egypt Main exports are crude oil petroleum products cotton textile
Metals and agricultural products while imports mainly consisting of machinery, food products, fuels and
chemicals. After 2016 economic reform Egypt seems to be doing exceptionally good export wise as a
constant rise in the rate of exports can be witnessed.

2. Pakistan

Pakistan is a developing country. It is primarily agricultural country, Pakistan is one of the

largest producers of cotton rice wheat these are also one of the main export of Pakistan while other
being textile leather and sports goods in terms of imports Pakistan the strikingly resembles Egypt as it
import fuel machinery and equipment food product apart from these Pakistan also imports metals and
petroleum product cooking oils and etc. Pakistan seems to have an unstable economy with a lot of
internal and external factors affecting it’s economy.

With Egypt we can see a clear increase in export after 2016 that is because in 2016 Egypt
made Economic reforms in which they planned to work on they’re a culture sector and their technical
sector with the help of a loan of $12 billion by IMF Egypt situation is not Different from Pakistan as
Egypt is in a trade deficit and Egypt is facing a trade deficit for a long time which is similar to Pakistan
but the base their exports are increasing it seems that in near future there they will overcome the trade
deficit as much of their imports are raw material and capital assets Egypt is also exporting capital assets ,
Even in the covert times Egypt managed to grow its economy by 2.5% which is a great sign compared to
2019 it was slower but Egypt managed to grow even in the time of a global pandemic and this was
lauded by the economic experts , Ship is also a famous tourist destination , Tourism contributes to about
11% of Egypt GDP and a fairly large amount of foreign currency is also generated through tourism with
that the tourism sector is also responsible for a good employment rate with that Egypt is considered to
be a stable and safe place for international investors, moreover as a country in trade deficit Egypt plans
to boost its exports even more , As it can be seen in the export chart Pakistan export seems to be on the
downward position and if not in the downward position we can say that it is fluctuating no several
factors play huge role in this corruption and mismanagement being A few of them also Pakistan is not
considered a safe place even now because of terrorism Pakistan is trying to Expand into the tourism
market but the changing atmosphere of the area is questioning the stability of peace situation , the
imports seem to be on an upward trend but seem to be low on the for past two years , Pakistan needs
to take some strict measures save its worsening economy.

Graphical Analysis

To Pakistan is not considered stable and safe and that is what discourages the foreign investments
also

Conclusion
We would conclude with the fact that Pakistan’s economy is not doing good right now the current
account deficit if the import stay at the same increasing rate and the exports decrease or stay the same
but if this trend of huge gap between less exports and more imports remains the same there will be dire
consequences that may result in inflation and poverty but there is hope for Pakistan as there is market
for Pakistani product now to capture that market Pakistan Must take timely action.

Recommendations
Pakistan should really try to expand into the it’s actor which seems to be growing exceptionally
throughout the world and it is even a positive news for Pakistan that it is considered as an emerging
source of freelancing and IT so the government should support it sector as it can be really supporting for
the economy with that Being an agricultural country they can do something similar that they did in
Zulfikar Ali Bhutto era , Then the crop yield was increased and it made positive impact and it made an
impact globally so by increasing the yield of crops Pakistan can make a positive impact globally and
according to my understanding Pakistan should really think about doing that Strict reforms are needed
regarding the import policies.

Pakistan needs to gain the trust of the international market so that the investors Expand its already
huge cotton market by introducing cheap industrial land schemes that would encourage both national
and international investors this would increase the production of cotton products in textile.

References
1 Pakistan Economic Survey (2020-2021)
2 https://databank.worldbank.org/source/world-development-indicators
3 http://www.britannica.com/