MIRPUR UNIVERSITY OF SCIENCE

AND TECHNOLOGY
( Department Of Economics )

Name :- Summan Fazal

Roll No :- 013
Class. :- MSC ( 4th Semester )
Course Title :- Public Sector Economics
Assignment Topic. :- Trade Deficit
Submitted To :- Sir Ehtsham Ul Haq
Trade Deficit :-

Defination:-
A trade Deficit occurs when a country’s imports exceed from its exports during a
given period of time.
It is also known as negative balance of trade .
It is represented as imports > Exports or outflow > inflow.
Balance Of Trade :-
The difference in value over a period of time between a country’s imports and
exports of goods and services.
For Example :-
A trade e deficit of Pakistan is 2022 is (-39,681) Million US $.
.
Major Exports And Imports Of Pakistan:-

Exports Imports
Raw cotton Machinery
Knit wear Petroleum
Bed wear Chemicals
Clothing Cars and it’s spare parts
Rice Tea
Leather Wheat
Medicines Fertilizers
Medical instruments (surgical) Oil seeds
Fisheries Plastics
Sports Iron and steel
Fruits and nuts
Export, Imports And balance of trade
As per BOP. SPB

Year Exports Imports Balance of

( Million US $) (Million US $) Payment
( Million US $)
2018 25,768 56,671 -31,903
2019 24,257 51,869 -27,612
2020 22,536 43,645 -21,109
2021 25,639 54,273 -28,634
2022 42,471 72,152 -39,681
 Top 3 Imports And Exports Of Pakistan :-

Export Value Imports Value

House lines $ 3.61B Refined Petroleum $ 3.87B

Rice $ 2.14 B Crude Petroleum $ 1.92B

Knit sweater $ 950 M Raw Cotton $1.68B

Pakistan Rank In Export,Imports and
Balance Of Trade.

 In export rank : (59 Out Of 127)

 In Import Rank : (48 Out Of 127)
 Trade Balance Rank :
(118 Out Of 127 )

 Major Importer market:-

China ,UAE ,Saudi Arabia ,Quwait ,Indonesia,India, USA ,Japan ,Jermany ,Malaysia Etc.

 Major Exporter Market:-

USA ,China , Afghanistan ,UK ,Germany, UAE ,Bangladesh ,Italy ,Spain ,France Etc.
Graph:-
Graph
Reasons Of Trade Deficit:-

 Economic Growth.
 Increase Government spending.
 Change in exchange rate
 Limits of production.
 Removal of barriers to trade Sach as tariff.
 Country not produce everything.
 Manufacturing of product in foreign countries.
Effects Of Trade Deficit:-

 Low prices.
 weaking currency.
 Deflation.
 Change in employment.
 Decrease in GDP.
 Decrease in domestic in flow.
 Discourage investment.
 Disturb BOP.
 Disturb Budget Deficit.
 National debt.
 Solution / Removal Of Trade Deficit :-

 Increasing Import duties.

 Devalution.
 Government policies such as tax incentives and exemption to local exporting.
 Global competitiveness.
 Export subsidy.
 Protectionism policy.
 Industrialization development.
 Regulatory duties.