imports of pakistan

					IMPORTS OF PAKISTAN                                               MACRO ECONOMISS




                              IMPORT
 The term ‗‘ import ‗‘ is derived from the conceptual meaning


      ‗‘ To bring in the goods and services into the port of a country.‖
 The buyers of such goods and services are referred as ‗‘importers‘‘ who is based in the
country of import whereas the overseas seller are referred as ‗‘exporters‘‘. Thus an
import is any good or service brought in from one country to another country in a
legitimate fashion, typically for use in trade. It is a good that is brought in from
another country for sale. Import good and services are provided to the domestic users
by foreign producers. An import in the receiving country is an export in the sending
country.

 Imports of goods normally require involvement of customs authorities in both the
country of import and export and are often subject to import quotas, tariffs and trade
agreements. Import also mean


     ‘‘   Economic value of all the goods and services that is imported ‗‘


It means an increase or decrease in import affect the economic value of any economy.




            PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                  1
IMPORTS OF PAKISTAN                                               MACRO ECONOMISS



             TYPES OF IMPORT
There are two types of import:



      Industrial and consumer goods
      Intermediate goods and services

Companies import goods and services to supply to the domestic market at a cheaper
price and better quality then competing goods manufactured in the domestic market.
Companies import goods that are not produce in the local market.



                     TYPES OF IMPORTERS:
There are three broad types of importers:

      Looking for any product around the world to import and sell.
      Looking for foreign sourcing to get their product at the cheapest
       Price.
      Using foreign sourcing as a part of their global supply chain.



Direct import refers to the type of business importation involving major retailer (eg.
Wal-Mart) and an overseas manufacturer. A retailer typically purchases products
designed by local companies that can be manufactured overseas . In a direct import
program, the retailer bypasses the local supplier and buys the final product directly
from the manufacturer, possibly saving in added cost. This type of business is fairly
recent and follows the trend of global economy.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                  2
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS




DEFINITIONS OF IMPORT
Following are different definitions of term import :



      Commodities (goods & services) bought in from another country.

      An import is any good or service brought in from one country to another
       country in a legitimate fashion.
      The commercial activity of buying and bringing in goods from a foreign
       country.
      Imported – used of especially merchandise brought from a foreign source; ‗‘
       imported wines ‗‘
      Importation – act of carrying, conveying or delivering; the act of practice of
       importing or bringing into a country or a state opposed to exportation ; that
       which is imported; commodities or wares introduced into a country from
       abroad.
      Bring in from abroad.
      Economic value of all the goods and services that are imported.
      The act or occupation of importing goods or material.
      To bring or carry in from outside source , especially to bring from a foreign
       country .
      When you something and get it shipped to you.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                 3
IMPORTS OF PAKISTAN                                              MACRO ECONOMISS



    THE ORIGIN OF IMPORT
The bulk of import originates from Western Europe and the Far East, and within these
areas predominant supplier are the European Community and the new industrial
countries in Asia – Hong Kong, South Korea, Taiwan and Singapore. Electrical and
electronic goods, Where Japan outclasses the community, is the only exception to this
pattern among four categories of consumer goods.

The table 1 shows the share of imports of the same group of consumer goods in the
market. The community is defined as SIX original members.


Table 1: Share of the major supplier in import of consumer goods :

                       Clothing   electrical   house     other     Total     share in

                       Footwear                                               market

   EC         1974      28.9       36.8        44.2     32.5       34.4      7
   ETC        1974      16.5       19.1        15.9     4.9        16.1      3
   JAPAN      1974      1.1        28.9        2.6      7.3        9.6       2
   ASIA       1974      35.6       7.7         7.5      27.5       22.0      4
   OTHRS      1974      17.9       7.5         29.8     27.8       17.9      3




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                  4
IMPORTS OF PAKISTAN                                                MACRO ECONOMISS




      HISTORY OF IMPORT
1901:
        Jan 7, 1901 - When the Government reports of a year ago showed the trade of
that year to have been the largest in the history. With a total just rising above
$2000000000 ... But the croup of imports dutiable that is the and that ion *1/2 the year
is              that               of               ―manufactured‖                   for.


1932:
          Jun 5, 1932 displayed by all civic. Educational, patriotic, public schools,
colleges, universities and all State and that municipal buildings Observer." The
Governor also suggested that Now here ever possible be held in recognition of the
history and import of the flag




1934:
             Jan 10, 1934 - Prance was shown by Department of Commerce.
Figures today to be the chief source of the $890.000 worth of wines and liquors Import-
into the ... That was the first com- of liquor imports by the Department of Commerce
In several. Cesar, Spain ranked after France as a source of liquors
...



1947:
          Jun 22, 1947 - In 1943. The imports figure hit $3382,- . 000000 and exports
shot up to!, $12964000000. (Familiar Situation le the discrepancy was not a new one in
the history of United States trade. Indeed, it was all too familiar.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                     5
IMPORTS OF PAKISTAN                                                 MACRO ECONOMISS




1958:
           May 19, 1958 - Screen: Screen: 'Attila' at Local Theatres Anthony Quinn
and Sophia Loren Star Italian Import Is a Rewrite of History HOLLYWOOD in its
most delinquent mood could not improve upon the pointless fudge of violence and piety
that the Italian film-makers have poured together in "Attila. ...




1970:
         Sep 23, 1970 - Canada raised its tariff walls to the highest point in its history.
Great Britain passed the Emergency Tariff Act of 1931 and the Import Duties Act I of
1932. The British commonwealth concluded severely discriminatory preferential tariff
_its in Ottawa in 1932. The higher trade barriers



1980:
           Aug 1980 - Scandinavian Airlines reported that import cargo tonnage for
the month was up 83% over August, 1980, with particular strength in shipments to the
US west coast. Robert V. Smith, SAS western area cargo manager, said that SAS
August import traffic of 1207




1989:
      Aug 13, 1989 - A Catholic is inclined to ignore the probability that it takes only a
generation to overturn influences of history. The import of evangelical Christianity is
that 400 years of authoritarian Catholicism can indeed be overturned in a single
generation. Latin America will not be the same.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                       6
IMPORTS OF PAKISTAN                                                MACRO ECONOMISS




2001:
        Jan 23, 2001 - The statute and the legislative history thus indicate that Congress
set a demonstrably greater burden on the making of pre-importation ... find no reason
in the statute or its legislative history to import the clear and convincing standard from
subsection 2639(b) to subsection 2639.

2002:
         Jan 31, 2002 - Author: GEIR MOULSON, AP. Germany's parliament voted
Wednesday to allow limited imports of human embryo cells for research, settling for a
compromise after months of debate that pitted the scientific and economic merits
against moral concerns rooted in the country's past.




2004:
        Oct 24, 2004 - Japan, the biggest overseas customer for US beef, and more
than 40 other nations suspended imports of the meat in December 2003 after the
government announced the first case of mad cow disease in US history. The import
bans threatened more than $3.8 billion in annual US exports and



2005:
           Aug 31, 2005 - Such is history.‖ Those words could well be the motto
motivating Chinese negotiators locked in a bra brawl with European governments. ...
Around 80 million Chinese-made bras, sweaters and trousers have piled up in
European ports after exceeding import quotas, threatening to disrupt ...
   -



2006:
      Jun 12, 2006 - Among the wins for History, an import from London's National
Theatre, were best play, director for Nicholas Hitler, featured actress for Frances de la
Tour and leading actor for Richard Griffiths (presented by Julia Roberts, who called
the         assembled           theatre          notables           "insanely          ...

          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                      7
IMPORTS OF PAKISTAN                                                MACRO ECONOMISS




2007:
         Dec 12, 2007 import prices have now risen 11.4% in the past year, the largest
gain in the 25-year history of the import price index. Import prices increased a
downwardly revised 1.4% in October. The report comes one day after the Federal
Reserve cut its overnight interest rate target by a quarter




2008:
         Aug 18, 2008 - Australia currently faces its tightest employment conditions in
a generation, and farms are not immune. At orchards across the country, millions of
dollars worth of fruit rots on the ground season after season because there is simply no
one                    to                  pick                   it.                  ...



2009:
              Apr 15, 2009 - IT is remarkably easy to forget the lessons that history has
taught us and to prioritise short term interests over long terms gains. Throughout
history, it is amazing how many people fail to take on board the lessons of the past and
apply them to the current situation




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                      8
IMPORTS OF PAKISTAN                                                MACRO ECONOMISS



                TRADE & IMPORT
         There is no country in the world at present which could produce all the
Commodities. Economic development of all the developed countries is mainly due to
trade. Trade plays an important role in development of developing countries. Basically
trade is

           ―Commercial exchange (buying and selling on domestic &

                 International markets) of goods and services‘‘
   Two important mechanism form the basis of trade i.e

      Import
      Export

 If cost of producing certain product in any country is more and some other country is
producing the same product at relatively lower cost than the former country prefers to
import that very product. In the same way , if any country is producing a product
more than its domestic requirement than that country will export that product , hence
trade continue and helps countries in developing their economy.



A country has a demand for import when domestic quantity demanded exceeds
domestic quantity supplied, or when the price of good on the world market is less than
the price on domestic market. Import is impacted by a country‘s income and its
productive resources. If a country‘s income is not sufficient and its resources are not
utilized efficiently than country import exceeds than its export and trade deficit occur.



In macro economic theory, the value of import can be molded as a function of domestic
absorption and real exchange rate. These are the two largest factors of import and
them both affect import positively.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                     9
IMPORTS OF PAKISTAN                                          MACRO ECONOMISS




 ORGANIZING FOR IMPORT
                      OPERATIONS
Smooth and efficient import requires certain Personnel who have specialized
knowledge. The personnel involved and their organization vary from company to
company and sometimes same personnel have role in both exporting and importing. In
small companies one person may perform all the relevant functions, and in large
companies or companies with large amount of import, the number of personnel may
be large.


 In addition as a company decides to perform in-house the work it previously
contracted with outside companies (such as custom brokers, freight forwarders,
packing companies, and others) to perform, the import department may grows. As
business increases specialties may develop within the department, and the duties
performed by anyone person may become narrower.




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                10
IMPORTS OF PAKISTAN                                               MACRO ECONOMISS




      IMPORT DEPARTMENT
 A manufacturer import department often grows out of the purchasing department,
whose personnel have been assigned the duty of procuring raw material or the
components of the manufacturing process. For Importers or trading companies that
deal in finished goods, the import department begins as the result of being appointed as
distributer of foreign manufacturer or from purchasing a product produced
manufacture that has sale potential.



Because foreign manufacturer often sell their products Ex-factory or FOB plants, a
company intending to sell such good must familiarize itself with ocean shipping,
insurance, customs clearance and other procedural matters. Increasingly a number of
manufacturer are moving their manufacturing operations overseas to cheaper labor
regions and importing products they formerly manufactured in the country .That
activity will also put them in contact with foreign freight forwarders , custom brokers,
banks custom service , marine insurance companies and other service companies.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                    11
IMPORTS OF PAKISTAN                                               MACRO ECONOMISS




    MANUALS PROCEDURES
         & DOCUMANTATION
  It is often very helpful for the companies to have a manual of procedures and
documentation for their import departments. Such manuals serve as reference tool
for smooth operation and training tool for new employees. Moreover, since the custom
Modernization Act, such manuals are required to establish that the importers is using
reasonable care in its importing operations and they are recommended by the Bureau
of Export Administration for export operations. Such manuals should be customized to
a particular company. They should describe the company import process they should
contain names, ph. Numbers and contact persons of the freight forwarders and custom
brokers, steamship companies, packing companies, and the other services the company
has chosen to utilize as well government agencies. They should contain the copies of the
form of the company has chosen to use in import purchases and transportation,
identify.



 The internal routing of forms and documents within the company for proper review &
authorization and certain job description for the various personnel who are engage in
import operations. The manual should be kept on word processor and updated from
time to time as changes in contact of custom entries and under the automated export
system the department of custom and commerce has established a program for
electronic filing of documentation. Under these scenarios, import will be facilitated.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                    12
IMPORTS OF PAKISTAN                             MACRO ECONOMISS




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                 13
IMPORTS OF PAKISTAN                                              MACRO ECONOMISS



        HISTORY OF FOREIGN
          TRADE IN PAKISTAN
Pakistan is a member of the World Trade Organization, and has bilateral and
multilateral trade agreements with many nations and international organizations.

Fluctuating world demand for its exports, domestic political uncertainty, and the
impact of occasional droughts on its agricultural production have all contributed to
variability in Pakistan's trade deficit. In the six months to December 2003, Pakistan
recorded a current account surplus of $1.761 billion, roughly 5% of GDP. Pakistan's
exports continue to be dominated by cotton textiles and apparel, despite government
diversification efforts. Exports grew by 19.1% in FY 2002-03. Major imports include
petroleum and petroleum products, edible oil, chemicals, fertilizer, capital goods,
industrial raw materials, and consumer products.

Past external imbalances left Pakistan with a large foreign debt burden. Principal and
interest payments in FY 1998-99 totaled $2.6 billion, more than double the amount
paid in FY 1989-90. Annual debt service peaked at over 34% of export earnings before
declining. With a current account surplus in recent years, Pakistan's hard currency
reserves have grown rapidly. Improved fiscal management, greater transparency and
other governance reforms have led to upgrades in Pakistan's credit rating. Together
with lower global interest rates, these factors have enabled Pakistan to prepay,
refinance and reschedule its debts to its advantage. Despite the country's current
account surplus and increased exports in recent years, Pakistan still has a large
merchandise-trade deficit. The budget deficit in fiscal year 1996-97 was 6.4% of GDP.
The budget deficit in fiscal year 2003-04 is expected to be around 4% of GDP.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                    14
IMPORTS OF PAKISTAN                                                MACRO ECONOMISS




In the late 1990s Pakistan received about $2.5 billion per year in loan/grant assistance
from international financial institutions. Increasingly, the composition of assistance to
Pakistan shifted away from grants toward loans repayable in foreign exchange. All
new U.S. economic assistance to Pakistan was suspended after October 1990, and
additional sanctions were imposed after Pakistan's May 1998 nuclear weapons tests.
The sanctions were lifted by President George W. Bush after Pakistani president
Musharraf allied Pakistan with the U.S. in its war on terror. Having improved its
finances, the government refused further IMF assistance, and consequently the IMF
program was ended. The government is also reducing tariff barriers with bilateral and
multilateral agreements.

While the country has a current account surplus and both imports and exports have
grown rapidly in recent years, it still has a large merchandise-trade deficit. The budget
deficit in fiscal year 2004-2005 was 3.4% of GDP. The budget deficit in fiscal year
2005-06 is expected to be over 4% of GDP. Economists believe that the soaring trade
deficit would have an adverse impact on Pakistani rupee by depreciating its value
against dollar (1 US $ = 60 Rupees (March 2006) ) and other currencies. One of the
main reasons that contributed to the increase in trade deficit is the increased imports
of earthquake relief related items, especially tents, tarpaulin and plastic sheets to
provide temporary shelter to the survivors of earthquake of October 8, 2005 in
Pakistan Occupied Jammu and Kashmir and parts of the NWFP, an official said. The
rise in the trade gap was also fuelled by high oil import prices, food items, machinery
and automobile.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                     15
IMPORTS OF PAKISTAN                                               MACRO ECONOMISS



 IMPORTANT TERMS USED
           IN FOREIGN TRADE
    F.A.S (FREE ALONGSIDE SHIP):
      F.A.S is a price, which includes cost of goods plus expenses to deliver goods on
      the vessel (e.g.) freight charges, packing charges, export duty and dock charges
      etc.


    F.O.B (FREE ON BOARD):
      This includes cost of goods and all the charges goods up to the placement of
      goods on ship including railway freight, cost of loading goods on ship etc.


    EX-SHIP PRICE:
      Ex-ship price includes cost of goods plus delivery charges, dock charges, ship
      freight, export duty and loading charges etc.


    IN BOND PRICE:
      In bond price includes cost of goods and all expenses, which are for
      transporting the goods to importer‘s warehouses.


    DUTY PAID:
      Duty paid means a price, which includes cost of goods plus custom duty and all
      its relevant expenses up to this stage.


    C & F (COST AND FREIGHT):
      It includes cost of goods and all charges to the port of destination and freight of
      the ship.




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                      16
IMPORTS OF PAKISTAN                                              MACRO ECONOMISS




    C.I.F:
      It includes cost of goods and all the expenses mentioned in C & F plus insurance
      charges.


    FRANCO:
      It is also known as free price. It includes all the expenses up to the buyer‘s go
      down, which means all expense and duties are included in it. It means free
      delivery to the importers.


    CUSTOM DUTIES:
      Almost in all the countries, government of the country imposes certain duties on
      its imports and exports. These duties are known as custom duties.


    EXCISE DUTY:
      These duties are imposed on goods produced in the country for its own
      consumption. They are also imposed to discourage the consumption of certain
      goods. That is why luxury goods are charged with a higher excise duty than
      essential goods.


    F.O.R (FREE ON RAIL):
      The prices include all the expenses from factory to railway including boarding,
      but do not include railway freight.


    LOCAL PRICE:
      They are the initial prices of commodities and do not include any other expenses
      except cost of production. Buyer pays all the expenses to transport goods from
      the seller‘s factories or warehouses.




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                    17
IMPORTS OF PAKISTAN                                              MACRO ECONOMISS


    TRADE AGREEMENT:
      Different countries for the development of foreign trade make trade
      agreements. These agreements may be bilateral or multilateral. These
      agreements indicate the names of goods to be exported or imported and their
      terms and conditions.



    TRADE REPRESENTATIVES:
      Every country appoints trade representatives in foreign countries to promote
      the exports. They provide information about the commercial and business
      policies of other countries and also convey the commercial policy of their
      country.


    BALANCE OF TRADE:
      It is the difference between the total exports and total imports of visible
      commodities of a country during a year.


    BALANCE OF PAYMENT:
      Balance of payment includes visible and invisible trade. Visible trade includes
      the commodities, which are exchanged in concrete shape whereas invisible trade
      refers to services that a nation renderers to another nation.



    FORWARDING AGENT:
      They work at ports for exporters. They take delivery of from manufacturers at
      port and arrange for freight, meet custom formalities and get bill of lading etc.


    CLEARING AGENT:
      These agents give all the facilities to importers. They are at importing ports.
      They receive goods from abroad and send it to importers after meeting custom
      formalities.




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                    18
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS




      MEANS OF IMPORTING
            GOODS
 Normally goods are imported through following means in Pakistan:

    WHOLESELLERS:
            The wholesalers who have large capital, complete trade information and
            experience of importing goods can import goods directly from other
            countries.


    INDENT FIRMS:
            If the trader can not import goods due to any reason then he buys goods
            with the help of indent firm. The main purpose of indent firm is to assist
            for importing goods. This firm receives its remuneration in form of
            commission.


    FOREIGN PURCHASE OFFICE:
               The traders can import the goods from other countries by establishing
      their foreign purchase offices in abroad.




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                   19
IMPORTS OF PAKISTAN                                                   MACRO ECONOMISS



 PROCEDURE OF IMPORTS
      IN PAKISTAN
      There are some goods in which general permission is required to import them but there
      are other goods on which rigid import control is applied. The procedure of importing
      goods from abroad into Pakistan is almost similar to other capitalist countries of the
      world. The main stages involved in an import transaction are as under:


   REGISTRATION:
      Any person, firm or company who wants to import goods from abroad must get its
      name registered with the Chief controller of imports & exports (CCI & E) under
      import & export Act 1952. On obtaining the certificate of registration, the importer is
      entitled to avail the facilities declared from time to time under import policies.


   IMPORT LICENSE:
      For getting import license, the trader has to submit an application on a prescribed
      form to Chief Controller of imports and exports. The CCI & E after necessary check
      and verification would issue the license. The license issued by authority can be general
      or specific. General license permits the importers to import goods from any country
      whereas the specific license is issued to import goods from specific country. The goods,
      which are placed under free list, do not require any license.



   TRADE INFORMATION:
      After getting license, the importer approaches exporter through agent or directory to
      get necessary trade information.



   SENDING INDENT:
      After obtaining information, the importer sends an indent to exporter. It may
      be placed directly to the exporter or through indent houses. Importer mentions
      in indent the information regarding the quantity and quality of the goods, date
      of delivery, method of packing, marking and payment, instructions of shipment
      and insurance etc. Indent has features of both inquiry and order letter.


   ACCEPTANCE LETTER:
      If the exporter is agreed with terms and conditions laid down in indent then he
      sends an acceptance letter to the importer



         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                           20
IMPORTS OF PAKISTAN                                  MACRO ECONOMISS


                 PROCEDURE OF IMPORTS


                               Registration


                          License & Information


                             Sending Indent


                           Acceptance Of Order


                          Foreign Exchange & L/C


                        Exchange Rate & Intimation



                        Dispetching The Documents


                             Payment Of Bill



                           Custom Formalities


                           Cllecting The Goods


                              Delivery Order


                                End Of Deal




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                      21
IMPORTS OF PAKISTAN                                              MACRO ECONOMISS




AVAILABILITY OF FOREIGN EXCHANGE:
      As an importer has to pay the exporter in the currency of exporting country, the
      importer has to arrange foreign exchange of the value of imports. For this
      purpose, the importer gives an application to the central bank of the country on
      a prescribed form along with a copy of import license. The exchange control
      department of the state bank of Pakistan on proper verification of the import
      documents, sanctions to release a certian amount of desired currency to the
      importer through a bank.


OPENING LETTER OF CREDIT:
      After placing the order, the importer arranges for the opening of credit in favor
      of exporter through any local bank. For this purpose, the importer has to
      deposit a certain portion of total value of goods in bank. After the guarantee of
      importer‘s bank, exporter does not have any doubt about the payment. So, he
      sends the goods without any hesitation. This letter gives the assurance to the
      exporter regarding payment of goods exported.


DETERMINATION OF EXCHANGE RATE:
      As different currencies are use in the countries of importer and exporters,
      therefore an exporter always decides the exchange rate with importer‘s bank in
      order to avoid any future dispute.


INTIMATION OF SENDING GOODS:
      When an exporter sends goods by ship after making all the arrangements of
      packing anddelivery etc., he intimates the importer regarding the name of ship
      and its arrival date.


DISPATCH OF DOCUMENTS:
      The exporter dispatches all the documents to importer‘s bank regarding goods
      including invoice and bill of lading etc. along with instructions that these
      documents should not be handed over to importer till the final payment.




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                    22
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS




PAYMENT OF THE BILL:
      After this, the agent or the branch of the exporter‘s banking the importing
      country, receives documents from the exporter, which are necessary to enable
      the importer to take delivery of the goods. These documents may be D/A
      (Document against Acceptance) or D/O (Document against Payment) in the first
      case, documents are handed over to the importer as soon as he accepts a bill and
      in the second case, documents are handed over as soon as the payment is made.


CUSTOM FORMALITIES:
      The importer has to fulfill the following custom formalities to get the goods
      after receiving documents.


    BILL OF ENTRY:
      The importer uses this bill to provide information about goods to custom
      authorities for import duty.


    BILL OF SIGHT:
      If the importer can not provide the information for goods then he requests the
      custom authorities for the inspection of goods with the help of sight bill.


    CERTIFICATE OF ORIGION:
      If there is an agreement between two countries for not imposing import duties
      then the importer has to present a certificate of origion as a proof.


    CUNSULAR INVOICE:
      If the import duty is to be imposed on the value of goods imported then consular
      invoice is presented to certify the value of goods.


    PAYMENT TO CUSTOM:
      The custom authorities issue bill for duty imposed after scrutinizing the goods
      imported. The importer can get the receipt of payment by paying directly to the
      custom authorities of in nominated bank.



         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                   23
IMPORTS OF PAKISTAN                                               MACRO ECONOMISS




    PERMISSION OF CUSTOM:
      After receiving the duty, the custom authorities permit importer to take goods.



   COLLECTING THE GOODS:
      The importer can take goods to his go down or store after showing the custom‘s
      permission letter to warehouse keeper.


   DELIVERY ORDER:
      If any person other than owner of goods wants to collect goods from warehouse
      of port then he has to present the delivery order endorsed by the importer of
      goods in his favour.


   END OF DEAL:
      When the importer gets the consignment to his satisfaction, the transaction is
      considered to be closed. But if he is not satisfied with quality or quantity of
      goods, then he will negotiate with the exporter and settle the matter. If there is
      any damage to goods, the insurance company will compensate the loss to the
      importer on the advice of exporter.




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                     24
IMPORTS OF PAKISTAN                                              MACRO ECONOMISS




    MODES OF PAYMENT IN
   INTERNATIONAL TRADE
The following methods can be adopted as a mode of payment in international trade:

                            Open account
                            Mail transfer
                            Telegraphic transfer
                            Deferred payment
                            Foreign bank draft

                            Foreign bill of exchange




    OPEN ACCOUNT:
             In this method, the exporter debits the account of the importer whenever
             he exports goods to him. Importer makes payment from time to time or
             sends goods from his country to the exporter or exporting country. At
             the end of a particular period, the accounts are settled by giving or
             receiving the balance in form of foreign exchange. There is less degree of
             risk in this method. There is no need of drawing and discounting of bills.
             This is helpful only if both the parties have confidence in each other.


           MAIL TRANSFER:
             In this method the bank of the importing country sends a letter to the
             banker of the exporting country to pay a specific amount of money to the
             exporter. It is economical, but is slower than T/T (telegraphic transfer).




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                    25
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS




          TELEGRAPHIC TRANSFER:
            It is also known as cable transfer. It is an order for payment, sent by
            telegram or cable. This is the quickest method of transferring money
            from one country to another. In this system, the importer pays the
            money to a banking his country, in his country‘s currency and the bank
            sends a telegram to the bank of exporting country to pay money to the
            specified exporter in his currency. Though it is costliest method of
            transfer yet it is safe.


          DEFFERED PAYMENT:
            This method is applicable or suitable in case of a transaction of heavy
            amount. In this method, apart of the money is paid in advance and a part
            on getting shipment and the remaining amount is paid in installments in
            future. For the balance payable installments, the bank provides a
            guarantee.


          FOREIGN BANK DRAFT:
            Payment by a foreign bank draft is the simplest method of payments. It
            is a kind of bill of exchange drawn by a bank on its foreign branch
            asking him to pay a certain sum of money to the person named therein
            or his order. Importer pays the required sum to the bank and take bank
            draft and send the draft to the payee. Payee (exporter) presents it in his
            own country and gets the payment. It is drawn in the currency of
            exporter country.


          FOREIGN BILL OF EXCHANGE:
            It is a method of payment and a method of financing. These bills can be
            in the currency of the country or in the currency of the foreign country,
            depending upon the agreement. The exporter draws it on importer for a
            specific amount for months or days after sight. They may have some
            clauses like exchange clause, interest clause or bank charges clause.




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                    26
IMPORTS OF PAKISTAN                                                MACRO ECONOMISS




            IMPORT REGULATIONS – PAKISTAN


Imports allowed into Pakistan under Government of Pakistan (GOP) specified rules
include three types of items. A list of such items is covered under the Tariff-based list
published by the Federal Board of Revenue (Tariff and items with their Harmonized
coding are available on the Federal Board of Revenue - Government of Pakistan
website. A list of restricted items (hazardous material, medical equipment using
radioactive material, etc.) is also published, and government permission is required to
import under a strict regime. A list of negative items is published in the Import Export
Policy including hazardous waste (as described in Basle convention) and other items
not allowed to be imported for religious, health or security reasons.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                     27
IMPORTS OF PAKISTAN                                                MACRO ECONOMISS




                  INTRODUCTION
Pakistan is a member of the World Trade Organization (WTO) and several regional
trade agreements listed below:

Economic Cooperation Organization (ECO), whose membership includes Pakistan,
Turkey and Iran, has now expanded to include Afghanistan, Azerbaijan and five
Central Asian states which were under Russian occupation until the early 1990s. The
ECO grants 10% tariff preference on The statutory rates for some goods.

The South Asian Association for Regional Cooperation (SAARC) is comprised of
India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka and the Maldives. SAARC is
operating under a South Asian Preferential Trading Agreement (SAPTA), which
became effective in 1994. However, this has not translated into increased regional
trade, since the trade volume between countries is limited due to the simmering dispute
between India and Pakistan.

Pakistan - Malaysia Free Trade Agreement

Pakistan - China Free Trade Agreement

Pakistan - Sri Lanka Free Trade Agreement

Pakistan - Malaysia Early Harvest Program

Pakistan - China Early Harvest Program

Pakistan - Iran Preferential Trade Agreement

All transit goods to Afghanistan are governed by the Afghan Transit Trade
Agreement.

Pakistan is also a member (with India and Nepal) of the Asian Clearing Union,
founded with the aim at facilitating multilateral payments through the use of local
currencies of participating countries in regional transactions, in order to expand intra-
regional trade and save convertible foreign exchange.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                     28
IMPORTS OF PAKISTAN                                            MACRO ECONOMISS




    RULES AND REGULATIONS FOR
       IMPORTS IN PAKISTAN




    CUSTOMS CLEARANCE INTRODUCTION
     UNDER IMPORT-PAKISTAN
     Shipments may be received at either sea, airport or dry port declared by

     customs authorities as customs ports, customs air port and land customs
                                     station.


      PROCEDURE FOR CUSTOMS CLEARANCE
            IN IMPORT PAKISTAN
      Procedure for customs clearance under Import-Pakistan comprises of
                            the following three steps:



        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                   29
IMPORTS OF PAKISTAN                                              MACRO ECONOMISS




             Arrival of goods at customs port

             Filing and examination of Bills of entry, and
             Assessment of customs duty


       CBR has started clearance of goods through PACCS (Pakistan Customs

       Computerized System) since May 01, 2005. In this regard, Model Collect

       orate of Customs Karachi now handles both import and export

       consignments at Karachi International Container Terminal (KICT),

       Pakistan International Container Terminal (PICT), and Qasim

       International Container Terminal (QICT).


    IMPORT PAKISTAN CUSTOMS
     CLEARANCE UNDER PACCS
       Salient features of PACCS are as follows:


      NO GEOGRAPHICAL LIMITS
       Under PACCS an importer is liberated of geography. You can file Goods

       Declarations from the HQ in Islamabad, pay duties from a branch office at an

       online bank in Lahore and clear your goods for a factory in Karachi.


      PACCS PHILOSOPHY UNDER IMPORT PAKISTAN
       Only stop the suspect. Customs work is phased in the following manner:

       1. Pre-arrival work

       2. Work while the goods are at the port
       3. Work after the goods have been released

       Goods are required at the port only where physical examination is needed; all
          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                   30
IMPORTS OF PAKISTAN                                                MACRO ECONOMISS


       other Customs work can be completed either before arrival of goods or
       finalized after the goods have been released.




      PRE-ARRIVAL GOODS DECLARATION RELATED TO
       IMPORT PAKISTAN
       Advanced filing of electronic Goods declaration 10 days prior to arrival of

       cargo, no permissions required.


      PRE-ARRIVAL PROCESSING OF CARGO RELATED TO
       IMPORT PAKISTAN
       Cargo and vessel details are acquired electronically from the carriers at least 24

       hours prior to the arrival of vessel. Risk Management System screens the cargo

       declaration and segregates high risk from low risk cargo. Transit and

       transshipment consignments are identified. Major amendments to the manifest

       are completed electronically by the time the vessel arrives. Cargo declaration is

       electronically transmitted to the terminal operator to unload cargo according

       to the manifest.


      PROCEDURE AFTER ARRIVAL OF VESSEL
       Non-risky cargo for which GD has been filed in advance is released.

       Transshipment cargo is released to bonded carriers for carriage upcountry.
       There is no requirement for filing of TP requests under PACCS. High risk


          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                      31
IMPORTS OF PAKISTAN                                              MACRO ECONOMISS


       cargo as communicated to the terminal operator is brought straight away to the

                       GOODS
       examination areas and examination comme

       DECLARATION FILING &
       PROCESSING FOR IMPORT
       PAKISTAN
      ELECTRONIC GOODS DECLARATION:
       No documents are required.


Declarations are filed from your office over the web any where in the country.

Customs Reference Number (machine number) is instantly allotted online. The Risk

Management System processes your Declaration. In case the Declaration is found to be

non-risky, your cargo is released and both you and the terminal operator are informed
online by PACCS. The process takes less than ten seconds.


You are free to file Goods Declarations either yourself or through your agent, the

choice is purely your own. In case the Declaration is deemed risky by the Risk

Management System, it will be allotted to a Customs official for scrutiny and you will
be asked online for clarifications or asked for specific documents to support your
Declaration.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                   32
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS




PAKISTAN CUSTOMS EXAMINATION PROCESS FOR IMPORT
ITEMS IN PAKISTAN

Pakistan Customs already has examination reports for risky consignments. Where

consignments were deemed risky, they were grounded by the terminal operator and
examined by Customs on arrival of the vessel and the report fed into PACCS


PAYMENT OF TAXES/DUTIES
PACCS is a self-assessment system where you pay your taxes yourself without

interference by Customs before filing a declaration to Customs. You pay your duties
anywhere in the country, all you need is to remember your BL number.


PAYMENT OF TAXES/DUTIES
PACCS is a self-assessment system where you pay your taxes yourself without

interference by Customs before filing a declaration to Customs. You pay your duties
anywhere in the country, all you need is to remember your BL number.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                  33
IMPORTS OF PAKISTAN                                                  MACRO ECONOMISS


DETERMINATION OF VALUE
PACCS proceeds by the book, the only value accepted under PACCS is transactional
value ascertained as per the GATT code.


DISPUTE OVER VALUE
There is a formal mechanism for review of values ascertained by the assessing staff.

This is called the First Review. In case you are not satisfied with the first review, there

is a second review before the Assistant Collector. The Assistant Collector in the second

review gives formal written orders. Orders by the Assistant Collector are appealable
before Collector Appeals. Orders of Collector Appeals are appealable before the

Appellate tribunal.

You have the choice to clear the goods provisionally, all request for provisional

clearance are auto accepted on payment of securities. We feel that your pursuit to seek
justice must not be hindered by the threat of demurrages.


We have successfully dealt with import of the following items into Pakistan and the list
is growing all the time:


              Paperboard and articles

              Paper

              Firebricks Refractory

              Refractory Ceramic Goods

              Iron and steel

              Special machinery for particular industry

              Pharmaceutical Products

              Metal working machinery

              Organic Chemicals
              Lubricating Petroleum Oil
          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                        34
IMPORTS OF PAKISTAN                                            MACRO ECONOMISS


             Plant, Machinery and Equipments

             Manufactures of Metals

             Telecommunication Appliances and Equipment

             Plastic Material

             Chemical Material & Products

             Power Generating Machinery, Equipment Parts

             Transport Equipment

             Dairy Products & Bird Eggs

             Miscellaneous Edible Products and Preparation

             Un-Milled Wheat

             Seeds of Vegetables

             Mustard Oil
             Surgical Instruments


Pakistan Customs already has examination reports for risky consignments. Where

consignments were deemed risky, they were grounded by the terminal operator and
examined by Customs on arrival of the vessel and the report fed into PACCS.




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                   35
IMPORTS OF PAKISTAN                                                MACRO ECONOMISS




     FOREIGN EXCHANGE
 In simple words we can say that:


                     Foreign exchange means the currency of other countries
                     non technically it means foreign currency.



In news paper it refers to the ―RATE OF EXCHANGE‖

In a more wider sense, foreign exchange means:



                    ―The mechanism, the media used and the rates

                     at which these mediums are exchanged.‖



According to H.E.EVILET

―The means and methods by which rights of wealth expressed in terms of the currency
 of one country are converted into rights to wealth in terms of the currency of another
                       country are known as foreign exchange.‖



FOREIGN EXCHANGE MARKET:
―It is a market in which currencies of different countries are traded against each
other. It is just like an ordinary market. The only difference is that in ordinary market
you purchase goods for money however in foreign exchange market you purchase
money for money. The money purchased is of some other country and you make
payment in your country‘s currency.‖




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                      36
IMPORTS OF PAKISTAN                                               MACRO ECONOMISS



               EXCHANGE RATE
The unified floating exchange rate system which was introduced in May, 1999
remained in operation during the current fiscal year 1999-2000. The value of Rupee
under this system is determined by the supply and demand forces in the inter-bank
market. The floating inter-bank rate (FIBR) is the effective exchange rate at which all
foreign      exchange        receipts     and         payments        take      place.

Pak-rupee against US dollar remained stable both in inter-bank foreign exchange
market and open market during July-April, 1999-2000. The inter-bank foreign
exchange rate in terms of US dollar averaged around Rs 51.8 during April, 2000 as
against Rs 51.6 averaged during July 1999, indicating a marginal depreciation of 0.4
percent. The Rupee-Dollar average exchange rate in the open market during July,
1999 was Rs 53.8 compared to Rs 54.3 during April, 2000. This portrayed that
premium remained at a normal level of Rs 2.5 in April, 2000. The month-wise
movements of composite/inter-bank and open market exchange rates during 1998-99
and 1999-2000 are reflected in Fig-12. It can be seen from the figure that premium
remained stable since February, 1999. The stable and predictable exchange rate has
played an important role in the sharp recovery of exports in the current fiscal year.


IMPORTS - PARTNERS:
China 15.4%, Saudi Arabia 12.2%, UAE 11.3%, Kuwait 5.5%, US 4.8%
(2008)




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                    37
IMPORTS OF PAKISTAN                                              MACRO ECONOMISS




                                IMPORTERS
      indentors as well as suppliers of raw materials used in plastic, rubber, paint,
       PVC,         battery,         match,        pharmaceutical          industries.
       Pakistan
      Importers of all consumer goods, electrical goods (consumer items) and
       indentors
       Pakistan
      Importers of Arms and Ammunition for wholesale and retail in the local
       market
       Pakistan
      Importers and indentors of industrial chemicals and plastics raw materials.
       Pakistan




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                   38
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS




      Distributors, importers, stockists, dealer & suppliers of hardware,
       tools and building materials
       Karachi
      Distributor of computer systems, software and internet
       based software solutions.
       Karachi
      Distributor of computer hardware. The company currently boasts of a
       large and varied client base, comprising mainly of Financial Institutions,
       Multinational Corporations, Aid Agencies, Embassies, Educational Institutions,
       Hotels, and Industries.
       Karachi
      One of the leading importers and buying agents of packaging materiel,
       office & school stationery, adhesive tapes, inks. Also deals in paper,
       chemical etc. in Pakistan.
       Karachi
      Importer of hydraulic hose.
       Karachi
      Importer / exporter of rice, spices, dry fruit & commission agent.
       The company envisages and established a most modern poultry farm
       & eggs distribution designed to produce 150,000 numbers of finished
       rice & poultry products.
       Karachi
      Importers of super kernal and basmati pk 385 rice.
       Lahore
      Importers and distributors of fancy school & office stationery,
       writing instruments, drawing instruments and drafting instruments.
       Deals in the following stationery products:
       Karachi
      Leading trim importer & textile buyers of Pakistan. Buying agents of
       packaging material, office & school stationery, adhesive tapes, inks,
       paper, chemical etc. in Pakistan.
       Karachi
      Distributors, Importers, Stockists, Dealer & Supplier of Hardware, Tools,
       Building Material. Specialist in : Gases, Cutting, Welding Equipments,
       Consumables and Accessories in Pakistan.
       Karachi
      Importer, exporter, distributor, representative and agent of petrochemicals.
       Lahore
      One of the leading fine paper Importers & distributors in the Pakistan
       Specializes in Coated Duplex Board, Ivory Card, Colored Card, Sticker
       Paper, Art Card, Art Paper, Alabaster ( Brief ) Card, Chromo (Plastic)
       Card, Bleach Board, Tissue paper, Glassine Paper, Kraft Paper,
       Offset Paper, and other Kinds of Paper and Board.
       Lahore
          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                  39
IMPORTS OF PAKISTAN                                               MACRO ECONOMISS

      Importer & Stockists of Textile Machinery, Spares and Accessories.
       Karachi
      Distributor of filtration products, cartridges and housings
       for different industrial applications, liquid ring vacuum
       pumps & air blowers, torque wrenches, torque measuring
       equipment, pneumatic tools, test equipment for car
       industry, spares for many reputed brands of air compressors,
       airline filters for different brands, used textile machinery and
       spares, spares & accessories to mining & cement industries etc
       Pakistan
      Leading importers, distributors and representative of petrochemicals,
       masterbatches, and milk powder.
       Lahore
      Importer of raw materials and intermediate chemicals to the local industries.
       Also importer of food and toiletteries, which were mainly distributed by
       the associate company in 50,000 retail outlets throughout Pakistan.
       Karachi
      Importers as well as promoters and distributors of veterinary medicines
       throughout Pakistan.
       Karachi
      Importer and exporter of surgical instruments, medical
       instruments, dental instruments, manicure instruments & pedicure
       instruments, beauty care instruments, skin care instruments,
       hospital instruments, first aid instruments
       Sialkot
      Importers and exporter of sports goods, martial arts, karaty
       sutis, chin guard, boxing glvoes, belts, sports wears, track
       suits, foot ball, gloves
       SialkotImporter of stainless steel sheets and coils, almunium scrap foil and
       ingots, yarn & thread manmade textile fibre, all kinds of paper, stone cutting
       kits, tube lights and t.v. Spare parts and various items. Has a large base of
       customers, both retail and wholesale across Europe.
       Lahore
      Importer and exporter of high quality leather men's shoes
       Faisalabad
      Importer, exporter and indenting agent of chemicals and raw materials.
       Karachi
      Wholesale roasters of high grade arabica coffees and importers of speciality
       teas.
       Karachi
      Importers and indentors of industrial chemicals and plastics raw materials.
       Lahore
      Importer of branded names of garments, women‘s wear, sportswear,
       steel products etc.
       Lahore

          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                    40
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS




      Wholesale of medicines, interested to import some medicines brand especially
       injectable antibiotic like cephradine cefotaxime.
       Mardan
      Imports hospital disposables & dental supplies and agency
       services to importers & exporters.
       Lahore

      Distributor of testing equipment & instruments, measuring tools, pressure
       gauges, etc
       Karachi
      Importer and Exporter, buying Agent for textile machinery and accessories.
       Karachi
      Import & export a variety of products such as electronic components,
       computers and accessories, mobile phones, automotive parts, rice,
       machinery, garments etc to over 165 countries around the world.
       Lahore




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                     41
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS




      We are wholesalers of used clothes in Pakistan and we want to purchase
       the clothes from different countries.
       Faisalabad
      Distribution and sales of branded electronic components. Represent ISO
       9000 certified manufacturers & distribute their product nation wide
       Islamabad
      Distributor of raw materials for the pharmaceutical, nutritional,
       personal care and food industry.
       Karachi

      Represents the world's renowned manufacturers/suppliers of active and
       non-active bulk raw material for pharmaceutical, food, feed &
       cosmetics industry
       Karachi
      Indenting house for import/export of various chemicals (Industrial Chemicals ,
       Organic , Inorganic, Petrochemicals , Solvents) Dyes Intermediates,
       Pharmaceuticals Raw Materials. Strength lies with representation of reputed
       suppliers from various parts of the world such as China, Germany, Spain ,
       Indonesia, Malaysia , Italy, Japan, Korea, Netherlands, Singapore,
       South Africa, France , Russia , Iran , UAE , Taiwan, UK, USA, Romania and
       Canada
       Karachi
      Importers And Indentors Of Industrial Chemicals And Plastics Raw Materials.
       Lahore




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                  42
IMPORTS OF PAKISTAN                             MACRO ECONOMISS


   Summary of Import & Export In Pakistan




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                 43
IMPORTS OF PAKISTAN                                           MACRO ECONOMISS




            Direction of Imports
Imports by Territories/Regions and major countries during July, 2009 compared with
July, 2008 are given in table. During July, 2009

       (15.09%) of total imports were from European Union.
The share of imports of

    Middle East was 36.11%
    North America 7.11%

Country-wise imports

      United Arab Emirates was at the top of imports list during
       July, 2009
       Followed by

             China,
             Saudi Arabia,
             Kuwait,
             Germany and
             U.S.A.

The combined share of these six countries during July, 2009 was
51.08% as against their combined share of 56.73% during July,
                            2008.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                44
IMPORTS OF PAKISTAN                             MACRO ECONOMISS




  Monthly Imports from Major Countries




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                 45
IMPORTS OF PAKISTAN                             MACRO ECONOMISS




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                 46
IMPORTS OF PAKISTAN                             MACRO ECONOMISS



                  Monthly Imports by
                  Territories/Regions




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                 47
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS



          Imports by Economic
              Categories
During July, 2009 imports of consumer goods increased by 18.10% but of raw
materials for consumer goods decreased by 21.07% compared to July, 2008. Imports
of capital goods during July, 2009 decreased by 6.23% and of raw material for capital
goods by 20.67%compared to the same month of last year.


Performance of imports by economic categories is given below.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                  48
IMPORTS OF PAKISTAN                                              MACRO ECONOMISS



       IMPORTS BY GROUP
Imports into Pakistan during July, 2009 amounted to Rs. 216,430.60 million as against
the imports of Rs. 270,341.41 million in the previous month and Rs. 250,512.57 million
during the corresponding month of last year showing a decrease of 19.94% over
previous month and by13.60% over the corresponding month of last year.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                   49
IMPORTS OF PAKISTAN                             MACRO ECONOMISS




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                 50
IMPORTS OF PAKISTAN                             MACRO ECONOMISS




      MONTHLY IMPORTS
       INTO PAKISTAN




                                Figure 1




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                 51
IMPORTS OF PAKISTAN                               MACRO ECONOMISS



    CATAGORIES OF
  IMPORTS IN PAKISTAN


                              CHEMICAL
                PETROLEU       GROUP
                   M                        TELECOM
                  GROUP
                                             GROUP

       FOOD                                           TRANSPORT
      GROUP                                            GROUP



                             IMPORTS                    MISCELL-
  MACHINERY
                               OF                       ANEOUS
    GROUP
                             PAKISTAN                    GROUP




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                     52
IMPORTS OF PAKISTAN                                                MACRO ECONOMISS




       MACHINERY GROUP
―During July, 2009 Machinery Group contributed 21.32% of total imports in which the share
                        of Machinery were 18.25% respectively.‖

The import of machinery showed downward trend in current fiscal years because of
high contraction in aggregate demand of the country and depreciated rupee against
dollar as the major factors behind the significant drop in the import bill. The local
engineering industry is only meeting between 25 per cent to 40 per cent of the demand
within the country while the rest is being met through imports.

The import of engineering goods — electrical, non-electrical machinery, transport
equipments and iron and steel manufactures has doubled during last decade and
collectively makes up one-third of the total import bill.



Apart from the uncertain
availability of the basic raw
materials, the lack of research
and development and the link
between science and industry to
provide the technological back-
up have also contributed for the
dismal performance of the
engineering industry over the
years. In addition, the high cost
of         electricity,     fuel,
transportation,           capital
investment and high financial
charges have tend to render the
locally produced engineering
goods in competitive not only in
the domestic market but also outside to make the exports unviable.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                      53
IMPORTS OF PAKISTAN                                                    MACRO ECONOMISS




             Major Import Items
               In Machinery
Imports of machinery during July, 2009 valued at Rs. 39,498.78 million was lower by 22.88%
compared to June, 2009 Rs. 51,218.52 million and by 7.72% compared to July, 2008 Rs.
42,801.00 million. The share of machinery in total imports in July, 2009 was 18.25% as against
18.95% in June, 2009 and by17.09% in July, 2008. Details of imports of machinery during
July, 2009 and the corresponding month of last year are given below:-




           PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                         54
IMPORTS OF PAKISTAN                                                MACRO ECONOMISS




            1-Power Generating Machinery
The imports of power generating machinery during July, 2009 valued at Rs. 6,924.77
Million was lower by 22.88% compared to July, 2008 Rs. 7,739.82

           Power generating items includes:

                 Steam
                 Vapour-Generating Boilers
                 Superheated Water Boilers
                 Auxiliary Plant For Use Therewith; Parts Thereof
                 Steam Turbines
                 Vapour Turbines, And Parts Thereof
                 Internal Combustion Piston Engines, And Parts Thereof
                 Engines And Motors,
                 Rotating Electric Plant, And Parts Thereof
                 Power-Generating Machinery, And Parts Thereof




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                      55
IMPORTS OF PAKISTAN                                        MACRO ECONOMISS




 Imports of Power Generating Machinery in Last 5
                     Years

  Product        2005         2006         2007         2008         2009
Steam         $2,197,000   $7,230,000   $4,094,000   $7,249,000   $8,538,000
vapour-
generating
boilers,
superheate
d water
boilers
 auxiliary
plant for
use
Steam         $8,688,000   $18,912,00   $7,101,000   $7,828,000 $16,813,000
turbines                            0
vapor
turbines,
and parts
thereof,
Internal      $58,108,00   $57,315,00 $72,012,000 $61,986,000 $133,404,00
combustio              0            0                                   0
n piston
engines,
and parts
thereof
Engines       $9,886,000   $58,197,00 $50,546,000 $50,958,000 $30,254,000
and                                 0
motors
Rotating      $75,536,00   $88,067,00 $130,416,00 $180,316,00 $269,164,00
electric               0            0           0           0           0
plant, and
parts
thereof
Power-        $29,784,00   $38,853,00 $13,007,000    $6,155,000   $3,130,000
generating             0            0
machinery
, and parts
thereof



          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                           56
IMPORTS OF PAKISTAN                                                       MACRO ECONOMISS




     AGRICULTURE MACHINERY
    ―The Imports of Agriculture Machinery during July, 2009 Valued At Rs 470.39
           Million Was Increase As Compared To July, 2008 Rs 436.75‖

Agriculture Sector is the back bone of Pakistan economy. Pakistan have to import agricultural
machinery. A policy is being finalized for the development of industrial infrastructure
development with tax holidays and full duty exemptions on import of agriculture machinery.
Agriculture accounts for 21.6 % of the GDP and 43.4 % of the total workforce and is the main
source of livelihood for 66 % of the country‘s population living in rural areas. It contributes
substantially to the country‘s exports. It also provided raw material to major industries such
as textile, sugar, dairy, leather and other agro-based industries as well as market for industrial
products. So the import of agriculture machinery is important for better results.



Import of Agricultural Machinery Items Includes:

    Agricultural Machinery (Excluding Tractors), and Parts Thereof
    Tractors

   Product           2005             2006        2007        2008                        2009
 Agricultural      $8,698,000       $9,832,000 $16,132,000 $23,742,000                 $39,915,000
 machinery
 (excluding
 tractors),
 and parts
 thereof

 Tractors        $45,963,000 $37,703,000 $22,323,000 $24,215,000                       $94,031,000




            PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                            57
IMPORTS OF PAKISTAN                                               MACRO ECONOMISS




             TEXTILE MACHINERY
 ―The Imports of textile Machinery during July, 2009 Valued at Rs 1,310.57 Million
              was decrease as Compared to July, 2008 Rs 1,819.27‖

Pakistan was too important in the textile sector and the best way for textile export
promotion for Pakistan was to use latest machinery for a better place in the global
market. As a matter of fact Textile exports of Pakistan consists a share of 60% of the
total exports and the foreign exchange revenue generation of the country. the main
focus of the organizations dealing in imports of textile machinery is procurement of
high tech machinery that assists in production and manufacturing of value added
products of textile i.e. yarn manufacturing for both staple and filament spinning, a
Fabrics and other specialty Items as per the customer demand & end use, In addition
to this, the Demand for the higher quality products and the degree of excellence of the
resultant commodities for the consumers is increasing continuously.



                                              As a realization the roar of the High
                                              quality products is becoming more and
                                              more significant with the period of
                                              time. Over USD 4 billion of textile and
                                              garment machinery has been imported
                                              in Pakistan in the last few years that
                                              has significantly improved the quality
                                              and productivity of Pakistan textile
                                              products in the last few years and the
                                              Government of Pakistan is targeting
                                              over USD 10 billion of exports of
                                              textiles and garments made-ups in the
                                              successive years. Import of textile
                                              machinery has registered an impressive
                                              growth of 66.29% in the current fiscal
                                              year.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                    58
IMPORTS OF PAKISTAN                                                       MACRO ECONOMISS




               Imports of Textile machinery in last 5 years
   Product            2005                2006          2007             2008              2009
Textile
and            $465,036,0     $445,946,00        $629,761,0        $824,077,0    $948,565,00
leather                 0               0                 0                 0              0
machiner
y
and parts
thereof




        Ratio of Imports of Textile Machinery in Last
                           5 Years
                         1E+09
                     900000000
                     800000000
                     700000000
                     600000000
                     500000000
                     400000000
                     300000000
                     200000000
                     100000000
                              0
                                      1           2          3           4           5
     Product                        2005         2006       2007       2008        2009
     Textile and leather machinery,
                                               $445,946,000
                                    $465,036,000                     $824,077,000
                                                          $629,761,000          $948,565,000
            and parts thereof.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                                59
IMPORTS OF PAKISTAN                                            MACRO ECONOMISS




Office & Automatic Data Processing
            Machines
The Imports of office Machinery during July, 2009 Valued at Rs 1,607.68 Million was
decrease as Compared to July, 2008 Rs 1,894.20

Office Machinery Items Includes:

      Office machines
      Automatic data-processing machines and units thereof;
      Magnetic or optical readers,
      Machines for transcribing data onto data media in coded form and
       machines for processing such data.




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                 60
IMPORTS OF PAKISTAN                              MACRO ECONOMISS




    Imports of Office & Automatic Data Processing Machines
                              In last 5 years

 Product      2005       2006       2007       2008       2009
Office     $4,908,000 $7,550,000 $9,988,000 $11,640,00 $17,211,00
machines                                             0          0
Automati
c data-
processin $92,587,00 $102,615,0 $136,453,0 $165,277,0 $223,299,0
g         0           00         00         00         00
machines
Parts and $129,016,0 $107,929,0 $62,414,00 $52,024,00 $50,622,00
accessori          00         00          0          0          0
es




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                  61
IMPORTS OF PAKISTAN                                            MACRO ECONOMISS



            Metal working machinery
The Imports of Metal Working Machinery during July, 2009 Valued at Rs 470.52
Million was decrease as Compared to July, 2008 Rs 567.39

Imports of Metal Working include:

    Machine tools working by removing metal or other material

    Machine tools for working metal, sintered metal carbides or
     cermets, without removing material

    Accessories suitable for use solely hand

    Metalworking machinery


        Imports of Metal Working Machines In last 5 years


      Product           2005       2006       2007        2008        2009
 Machine tools       $4,984,000 $7,489,000 $14,326,000 $17,925,000 $47,790,000
 working by
 removing metal
 or other material
 Machine tools for   $2,980,000 $1,743,000   $5,452,000   $17,247,000 $17,986,000
 working metal,
 sintered metal
 carbides or
 cermets, without
 removing
 material
  accessories        $2,230,000 $1,391,000   $3,005,000    $3,891,000   $2,546,000
 suitable for use
 solely hand
 Metalworking        $5,895,000 $6,319,000 $11,566,000 $16,783,000 $22,005,000
 machinery




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                 62
IMPORTS OF PAKISTAN                                           MACRO ECONOMISS



      Telecommunication Apparatus
The Imports of Telecommunication apparatus during July, 2009 Valued at Rs 284.63
Million was decrease as Compared to July, 2008 Rs 304.65

Imports of Telecommunication apparatus includes:


    Television receivers (including video monitors and video
     projectors), whether or not incorporating radio-broadcast receivers
     or sound- or video-recording or reproducing apparatus

    Radio-broadcast receivers, whether or not incorporating sound-
     recording or reproducing apparatus or a clock

    Sound recorders or reproducers; television image and sound
     recorders or reproducers; prepared unrecorded media

    Telecommunications equipment




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                63
IMPORTS OF PAKISTAN                                        MACRO ECONOMISS



            Imports of Telecom Apparatus in last 5 years

    Product           2001      2006         2007       2008        2009
Television
receivers
(including video
monitors and
video
projectors),
whether or not                             $38,428,00 $46,935,00
                   $4,333,000 $8,604,000                         $51,941,000
incorporating                                       0          0
radio-broadcast
receivers or
sound- or video-
recording or
reproducing
apparatus
Radio-broadcast
receivers,
whether or not
incorporating
                $2,143,000 $3,670,000 $4,953,000 $5,799,000       $6,776,000
sound-recording
or reproducing
apparatus or a
clock
Sound recorders
or reproducers;
television image
and sound
                                           $14,238,00 $13,965,00
recorders or       $7,314,000 $7,491,000                         $15,232,000
                                                    0          0
reproducers;
prepared
unrecorded
media
Telecommunicati $138,335,0 $225,724,0 $421,146,0 $508,217,0 $1,719,183,0
ons equipment           00         00         00         00           00




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                             64
IMPORTS OF PAKISTAN                                               MACRO ECONOMISS



 Equipment for Distributing
        Electricity
The Imports of Equipment for Distributing Electricity during July, 2009 Valued at Rs
        481.40 Million was increased as Compared to July, 2008 Rs 748.61

Pakistan was too important in the electrical sector and the best way for electrical
export promotion for Pakistan was to use latest machinery for a better place in the
global market. In the Electrical Machinery group, Pakistan imported machinery at the
cost of $2.839 billion in the last fiscal as compared to the imports of $2.20 billion in
Last Years.

Imports of Equipment for Distributing Electricity include:

    Electric power machinery

    Electric control or the distribution of electricity

    Equipment for distributing electricity

    Electro diagnostic apparatus for medical, surgical, dental or
     veterinary purposes, and radiological apparatus

    Thermionic, cold cathode or photo-cathode valves and tubes

    Household-type electrical and non-electrical equipment

    Electrical machinery and apparatus




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                     65
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS



            Imports of Equipment for Distributing Electricity
                            In last 5 years


    Product             2005        2006        2007        2008        2009
         Electric    $12,906,000 $19,519,000 $29,589,000 $23,057,000 $49,803,000
           power
    machinery
          electric   $22,214,000 $32,406,000 $48,154,000 $57,453,000 $96,324,000
     control or
               the
   distribution
  of electricity
    Equipment        $11,322,000 $30,140,000 $25,878,000 $24,173,000 $37,925,000
               for
   distributing
      electricity
          Electro    $16,283,000 $20,479,000 $31,871,000 $32,447,000 $56,926,000
     diagnostic
     apparatus
   for medical,
        surgical,
       dental or
     veterinary
      purposes,
              and
   radiological
     apparatus
    Household-       $16,250,000 $20,424,000 $41,050,000 $42,856,000 $47,391,000
             type
 electrical and
             non-
       electrical
   equipment,.
  Thermionic,        $12,816,000 $13,765,000 $29,034,000 $34,316,000 $66,261,000
  cold cathode
       or photo-
         cathode
     valves and
            tubes
      Electrical     $30,130,000 $37,492,000 $51,824,000 $59,691,000 $95,267,000
    machinery
              and
     apparatus
            PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                              66
IMPORTS OF PAKISTAN                                         MACRO ECONOMISS




            Other Machinery &
               Equipments
The Imports of Other machinery & Equipment during July, 2009 Valued at Rs
26,363.50 Million was increased as Compared to July, 2008 Rs 26,337.91


Imports of other machinery & equipment include:

    Civil engineering and contractors' plant and equipment; parts
     thereof
    Textile and leather machinery, and parts thereof,
    Paper mill and pulp mill machinery, paper-cutting machines and
     other machinery for the manufacture of paper articles; parts
     thereof
    Printing and bookbinding machinery, and parts thereof
    Other machinery and equipment specialized for particular
     industries; parts thereof
    Food-processing machines (excluding domestic); parts thereof




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                              67
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS




            IMPORTS OF FOOD
                GROUP
During July, 2009 the 5 selected commodities of Food Group contributed
4.61% of total imports in which the share of Palm oil and Pulses were 26.61%
And 1.07% respectively.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                68
IMPORTS OF PAKISTAN                                                 MACRO ECONOMISS




                             TEA IMPORTS
Imports of tea during 2009 are1738.91 million dollars where as these were 1488.78 million
dollars in the previous year during same session.

Following are products included in this sector,



  Product         2005            2006              2007         2008          2009
 Coffee          $240,000        $280,000          $592,000     $753,000      $967,000
 and
 coffee
 substitut
 e
 Cocoa        $1,003,000       $1,576,000         $2,507,000   $2,909,000   $3,516,000
 Chocolat     $1,865,000       $2,257,000         $3,411,000   $3,919,000   $4,926,000
 e and
 other
 food
 containin
 g cocoa,
 Tea and      $178,949,0       $154,184,0         $191,890,0   $202,289,0   $229,716,0
 mate                 00               00                 00           00           00




           PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                      69
IMPORTS OF PAKISTAN                                                  MACRO ECONOMISS




               MILK AND MILK FOOD FOR
                      INFANTS
Imports of milk and dairy products during 2009 are270 million dollars where as these were
463.25 in the previous year during same session.

Following are products included in this sector,

                       Imports Of Dairy Products In Last 5 Years

   Product        2005       2006       2007        2008        2009
 Milk and      $5,969,000 $9,992,000 $10,027,000 $13,824,000 $29,630,000
 cream and
 milk
 products
 other than
 butter or
 cheese
 Butter and      $355,000       $204,000           $210,000     $235,000       $287,000
 other fats
 and oils
 derived
 from milk
 Cheese          $962,000 $1,210,000              $1,726,000   $1,878,000    $2,632,000
 and curd
 Eggs,           $398,000       $736,000           $828,000     $633,000     $1,060,000
 birds', and
 egg yolks,
 fresh,
 dried or
 otherwise
 preserved,




           PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                      70
IMPORTS OF PAKISTAN                                               MACRO ECONOMISS




             IMPORTS OF SUGAR

Imports of milk and dairy products during 2009 are$ 2,183,360
Million dollars where as these were $95,651 million dollars n the previous year during
same session.

Following are products included in this sector,



                     Imports of Sugar in Last 5 Years


   Product          2005           2006         2007         2008          2009
      Sugars,    $214,170,00     $6,177,00    $9,178,00    $9,775,00    $459,493,00
    molasses               0             0            0            0              0
   and honey
       Sugar        $978,000     $829,000     $1,310,00    $1,658,00      $2,082,000
 confectioner                                         0            0
            y




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                    71
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS



      Imports of Petroleum
 Imports of Petroleum products during July, 2009 valued at Rs. 62,981.51 million was
lower by 30.90%compared to July, 2008 Rs. 91,138.98 million.
The share of petroleum in total imports in July, 2009 was 29.10% as against
28.32% in June, 2009 and by 36.38% in July, 2008.

Variety wise details of imports of POL during July, 2009 and the corresponding
month of last year are given below:-




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                  72
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS




              CHEMICALS
                GROUP
Imports of chemicals during July, 2009 valued at Rs. 25,806.19 million was lower by
13.05%compared to June, 2009 Rs. 29,677.95 million and by 18.70% compared to
July, 2008 Rs. 31,741.65 million. The share of chemicals (Excluding fertilizer,
insecticides & medicines)in total imports in July, 2009 were 11.92% as against 10.98%
in June, 2009 and12.67% in July, 2008.Details of imports of chemicals by type during
July, 2009 and the corresponding month of last year are given below:




Chemical imports were targeted to be around $2.659 billion in ongoing fiscal;
          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                  73
IMPORTS OF PAKISTAN                                               MACRO ECONOMISS

however, such imports are now projected to be around $2.435 billion by end of this
fiscal year. Agriculture and other chemical imports are projected to be around $2.313
billion in 2009-10 with fertilizer imports at $727.3 million.

The chemical industry in Pakistan has by and large developed on a fragmented and
ad-hoc basis motivated by a combination of the existence of small local market and
attracted by traditionally high tariffs. As a result it suffers from the lack of scales,
national integration and consequent uncompetitive ness. However, there are sectors
where some scale and integration has been achieved on the basis of growing local
market. These include fertilizers, pesticides and to some extent dyestuffs and other
inputs for the textile industries. Even in the domains of pesticides and dyestuffs, the
production is primarily based on imported base materials and the domestic value
addition is confined to formulations and packaging




                                                      The      import   of    chemical
                                                      fertilizers for use in the
                                                      agriculture sector accounted for
                                                      more than 61 percent of the
                                                      import of all chemicals. Less
                                                      than one percent accounted for
                                                      the import of tanning and dyeing
                                                      extracts and their derivatives,
                                                      Dyes, Pigments and other
                                                      Colouring Matters Paints and
                                                      Varnishes, Putty and other
                                                      Mastics, Inks, Essential Oils,
                                                      Perfumery,            Detergents,
                                                      Lubricating        Preparations,
                                                      Albuminoidal          substances,
                                                      Explosive    and     Combustible
                                                      Preparations etc.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                     74
IMPORTS OF PAKISTAN                                            MACRO ECONOMISS




              Organic Chemicals
The Imports of Organic chemicals during July, 2009 Valued at Rs 10,457.68 Million
was decreased as Compared to July, 2008 Rs 12,012.69




Imports of Organic chemicals include:

    Hydrocarbons, and Their Halogenated, Sulphonated, Nitrated Or Nitro sated
     Derivatives
    Alcohols, Phenols, Phenol-Alcohols, and Their Halogenated, Sulphonated,
     Nitrated Or Nitro sated Derivatives
    Carboxylic Acids
    Nitrogen-Function Compounds
    Organo-Inorganic Compounds, Heterocyclic Compounds, Nucleic Acids And
     Their Salts, And Sulphonamides
    Other Organic Chemicals




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                  75
IMPORTS OF PAKISTAN                                              MACRO ECONOMISS



                Imports of Organic Chemicals In last 5 year

    Product         2005          2006          2007          2008          2009
Hydrocarbon      $180,066,00   $176,583,00   $282,568,00   $381,168,00   $344,476,00
s, And Their               0             0             0             0             0
Halogenated,
Sulphonated,
Nitrated Or
Nitro sated
Derivatives
Alcohols,        $92,700,000   $115,996,00   $237,011,00   $301,420,00   $264,458,00
Phenols,                                 0             0             0             0
Phenol-
Alcohols, And
Their
Halogenated,
Sulphonated,
Nitrated Or
Nitro sated
Derivatives
Carboxylic       $158,109,00   $150,465,00   $178,173,00   $203,193,00   $211,287,00
Acids                      0             0             0             0             0
Nitrogen-        $86,679,000   $85,808,000   $111,781,00   $154,022,00   $157,685,00
Function                                               0             0             0
Compounds
Organo-          $103,583,00   $105,147,00   $136,623,00   $134,243,00   $148,054,00
Inorganic                  0             0             0             0             0
Compounds,
Heterocyclic
Compounds,
Nucleic Acids
And Their
Salts, And
Sulphonamid
es
Other            $17,990,000   $19,089,000   $27,245,000   $26,338,000   $36,920,000
Organic
Chemicals




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                   76
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS




             Inorganic chemicals
The Imports of in Organic chemicals during July, 2009 Valued at Rs 2,768.79 Million
was decreased as Compared to July, 2008 Rs 5,109.11

Imports of in Organic chemicals include:


    Inorganic chemical elements, oxides and halogen salts
    Metal salts and paroxysmal, of inorganic acids
    Other inorganic chemicals; organic and inorganic compounds of precious
     metals
    Radioactive and associated materials




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                  77
IMPORTS OF PAKISTAN                                          MACRO ECONOMISS




            Imports of Inorganic Chemicals In last 5 year


  Product          2005        2006        2007        2008         2009
Inorganic       $50,576,000 $29,814,000 $82,555,000 $111,395,000 $175,863,000
chemical
elements,
oxides and
halogen salts
Metal salts     $31,949,000 $31,928,000 $40,349,000     $47,473,000   $64,029,000
and
paroxysmal,
of inorganic
acids
Other           $13,323,000 $13,824,000 $18,620,000     $20,431,000   $27,527,000
inorganic
chemicals;
organic and
inorganic
compounds of
precious
metals
Radioactive      $1,775,000   $1,246,000   $1,294,000     $844,000     $1,799,000
and
associated
materials




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                               78
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS



           Dyeing, tanning and
           Colourings materials
The Imports of Dyeing, tanning and colourings materials during July, 2009 Valued at
Rs 2,049.60 Million was decreased as Compared to July, 2008 Rs 2,265.66

Imports of Dyeing, tanning and colourings materials include:

    Synthetic organic colorings matter and colour lakes, and preparations based
     thereon
    Dyeing and tanning extracts, and synthetic tanning materials
    Pigments, paints, varnishes and related materials




Imports of Dyeing, tanning and colorings materials
                   in last 5 year


Product                 2001        2002        2003        2004        2005
Synthetic organic       $67,665,000 $77,265,000 $84,135,000 $93,534,000 $107,958,000
colourings matter
and colour lakes, and
preparations based
thereon
Dyeing and tanning      $18,293,000 $17,181,000 $20,521,000 $22,146,000 $24,702,000
extracts, and
synthetic tanning
materials
Pigments, paints,       $37,585,000 $42,559,000 $54,998,000 $62,169,000 $72,401,000
varnishes and related
materials




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                 79
IMPORTS OF PAKISTAN                                            MACRO ECONOMISS




           Imports of Dyeing, tanning and colourings
                    materials in last 5 year




   5


                                                     Pigments, paints, varnishes and
   4                                                 related materials


                                                     Dyeing and tanning extracts,
                                                     and synthetic tanning materials
   3
                                                     Synthetic organic colorings
                                                     matter and colour lakes, and
                                                     preparations based thereon
   2
                                                     Product



   1



       0         50000000    100000000   150000000




            PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                   80
IMPORTS OF PAKISTAN                                              MACRO ECONOMISS



     Essential oil perfume and
         flavour materials
The Imports of essential oil perfume & flavour materials during July, 2009 Valued at
Rs 1,296.18 Million was decreased as Compared to July, 2008 Rs 1,863.74

Imports of essential oil perfume & flavour materials include:

    Essential oils, perfume and flavour materials
    Perfumery, cosmetic or toilet preparations (excluding soaps)
    Soap, cleansing and polishing preparations




     Imports of Essential oil perfume and flavours
                materials in last 5 year

     Product            2005         2006          2007         2008          2009
Essential oils,      $16,246,000 $16,836,000 $20,061,000 $22,755,000 $28,549,000
perfume and
flavours
materials
Perfumery,           $16,790,000 $16,411,000 $22,322,000 $23,347,000 $28,305,000
cosmetic or toilet
preparations
(excluding soaps)
Soap, cleansing      $39,845,000 $41,612,000 $59,232,000 $69,992,000 $80,939,000
and polishing
preparations




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                  81
IMPORTS OF PAKISTAN                             MACRO ECONOMISS




    Imports of Essential oil perfume and flavours
               materials in last 5 year




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                 82
IMPORTS OF PAKISTAN                                            MACRO ECONOMISS



                  Plastic materials
The Imports of plastic materials during July, 2009 Valued at Rs 6,489.57 Million was
decreased as Compared to July, 2008 Rs 8,026.39

An import of plastic materials includes:

    Tubes, pipes and hoses, and fittings therefore, of plastics
    Plates, sheets, film, foil and strip, of plastics
    Monofilament of which any cross-sectional dimension exceeds 1 mm, rods,
     sticks and profile shapes, whether or not surface-worked but not otherwise
     worked, of plastics


            Imports of Plastic materials in last 5 year

     Product           2005          2006        2007         2008          2009
Tubes, pipes and $2,784,000 $3,759,000 $6,219,000 $8,821,000 $16,136,000
hoses, and fittings
therefore, of
plastics
Plates, sheets,     $43,301,000 $44,738,000 $69,951,000 $80,606,000 $97,736,000
film, foil and
strip, of plastics
Monofilament of $561,000        $621,000    $1,771,000 $2,612,000 $2,190,000
which any cross-
sectional
dimension
exceeds 1 mm,
rods, sticks and
profile shapes,
whether or not
surface-worked
but not otherwise
worked, of
plastics




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                83
IMPORTS OF PAKISTAN                                              MACRO ECONOMISS




          Transport Equipment
 The import growth in the transport group declined by 41.72 per cent during the first
                    seven month soft the current financial year.

 In transport group, Pakistan spent 811.327 million dollars on the import of all road
motor vehicles ranging from buses to motor cars, motor cycles and aircrafts including
the impart sand others transport equipments. Pakistan is becoming one of the world's
biggest new and renowned car markets due to rising disposable income and the
necessity of owing a reliable form of transport in both the remote and urban parts of
this vast and beautiful country. Popular export countries are the United Kingdom,
Japan and United Arab Emirates. From these countries Pakistani nationals can send
their car, or buy and export a used or new car, direct to Pakistan.


Transport equipment were Rs. 6,635.90 million was imported during July, 2009 as
against its imports of Rs. 13,579.05 million in June, 2009 and Rs. 6,585.15 million in
July, 2008 showing a decrease of 51.13% over June, 2009 while an increase by 0.77%
over July, 2008. The share of transport equipment in total imports in July 2009 was
3.07% as against 5.02% in June 2009 and by2.63% in July 2008. Details of imports of
transport equipment during July, 2009 and the Corresponding month of last year are
given below:-




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                   84
IMPORTS OF PAKISTAN                             MACRO ECONOMISS




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                 85
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS




             Passenger motor vehicles
The Imports of passenger motor vehicle during July, 2009 Valued at Rs 2214.43
Million was increased as Compared to July, 2008 Rs 1,701.93

Imports of passenger motor vehicle


    Motor cars and other motor vehicles principally designed for the transport of
     persons
    Motor vehicles for the transport of goods and special-purpose motor vehicles
    Road motor vehicles
    Parts and accessories of the motor vehicles




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                 86
IMPORTS OF PAKISTAN                                              MACRO ECONOMISS




Imports of passenger motor vehicles in last 5 year

    Product           2005         2006          2007          2008          2009

Motor cars and
other motor
vehicles
principally      $128,228,000 $156,232,000 $291,085,000 $357,794,000 $771,455,000
designed for the
transport of
persons
Motor vehicles
for the transport
of goods and      $39,655,000   $77,583,000   $89,481,000   $117,082,000 $253,656,000
special-purpose
motor vehicles
Road motor
                  $16,023,000   $22,735,000   $45,079,000   $42,748,000   $68,599,000
vehicles
Parts and
accessories of
                  $67,465,000   $109,854,000 $136,668,000 $120,965,000 $192,509,000
the motor
vehicles
Motor cycles
                  $40,731,000   $50,626,000   $87,528,000   $103,319,000 $109,843,000
invalid carriages
Trailers and
semi-trailers;
other vehicles,   $215,000      $1,348,000    $946,000      $1,585,000    $1,872,000
transport
containers




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                   87
IMPORTS OF PAKISTAN                                             MACRO ECONOMISS




                 OTHERS VEHICLES
The Imports of 0ther vehicles during July, 2009 Valued at Rs 2,995.69Million was
increased as Compared to July, 2008 Rs 1,187.86

Imports of 0ther vehicles include:

    Railway vehicles
    Aircraft and associated equipment; spacecraft (including satellites) and
     spacecraft launch vehicles; parts thereof
    Ships, boats (including hovercraft) and floating structures




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                 88
IMPORTS OF PAKISTAN                                       MACRO ECONOMISS




     Imports of other motor vehicles in last 5 year




  Product        2005        2006         2007         2008          2009
Railway         $36,475,000 $40,767,000 $72,351,000 $44,151,000 $68,741,000
vehicles
Aircraft and    $58,166,000 $74,405,000 $485,559,000 $441,815,000 $85,210,000
associated
equipment;
spacecraft
(including
satellites) and
spacecraft
launch
vehicles; parts
thereof
Ships, boats    $9,188,000 $68,838,000 $304,541,000 $292,545,000 $113,502,000
(including
hovercraft)
and floating
structures




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                           89
IMPORTS OF PAKISTAN                                                  MACRO ECONOMISS




             Imports of Iron & Steel in last 5 years

Product             2005          2006          2007          2008          2009
Pig-iron, sponge
                 $20,110,000      $18,546,000   $21,065,000   $29,388,000   $46,372,000
iron, iron
semi-finished
                 $25,268,000      $48,000       $4,848,000    $22,197,000   $238,662,000
products of iron
Flat-rolled
                 $110,057,000 $112,254,000 $205,528,000 $274,295,000 $424,749,000
products of iron
 non-alloy steel,
clad, plated or     $79,318,000   $97,826,000   $118,085,000 $123,330,000 $202,342,000
coated
Flat-rolled
products of alloy $35,790,000     $47,013,000   $60,581,000   $69,317,000   $102,002,000
steel
Iron and steel
bars, rods,
                    $7,679,000    $11,498,000   $31,290,000   $37,305,000   $108,772,000
angles, shapes
and sections
Rails or railway
track
construction      $2,996,000      $2,036,000    $9,078,000    $11,963,000   $826,000
material, of iron
or steel
Wire of iron or
                    $2,913,000    $4,501,000    $6,243,000    $7,871,000    $9,270,000
steel
Tubes, pipes and
hollow profiles,
and tube or pipe $39,330,000      $58,627,000   $53,935,000   $69,648,000   $82,996,000
fittings, of iron
or steel




           PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                    90
IMPORTS OF PAKISTAN                                                MACRO ECONOMISS




            Imports of Paper Boards in last 5 years


  Product            2005           2006          2007           2008           2009
  Paper and       $114,870,00    $122,862,00   $164,657,00    $177,498,00    $230,175,00
paperboard                  0              0             0              0              0
  Paper and       $24,589,000    $22,709,000   $39,329,000    $42,117,000    $53,600,000
paperboard
 , cut to size
    or shape,
and articles
 of paper or
paperboard




                 Imports of Rubber in Last 5 Years
   Product             2005          2006         2007          2008           2009
Materials of        $2,724,000    $3,642,000   $5,608,000    $6,442,000     $9,377,000
rubber (e.g.,
pastes, plates,
sheets, rods,
thread, tubes,
of rubber)
Rubber tires,       $59,974,00    $75,988,00   $88,792,00    $111,383,00    $150,545,00
interchangeabl      0             0            0             0              0
e tyre treads,
tyre flaps and
inner tubes for
wheels of all
kinds
Articles of         $11,779,00    $17,928,00   $20,587,00    $20,644,000    $37,871,000
rubber,             0             0            0




           PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                    91
IMPORTS OF PAKISTAN                                         MACRO ECONOMISS




              Imports of Leather in Last 5 Years




    Product            2005        2006        2007        2008        2009
Leather             $17,141,000 $17,704,000 $20,122,000 $24,965,000 $38,647,000
Manufactures of     $193,000        $23,000    $198,000    $530,000    $730,000
leather
Fur skins, tanned   $264,000        $9,000    $153,000    $142,000     $451,000
or dressed
(including heads,
tails, paws and
other pieces or
cuttings)




         PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                             92
IMPORTS OF PAKISTAN                                                    MACRO ECONOMISS




          SUGGESTIONS AND
         RECOMMENDATIONS
       HERE ARE SOME SPECIAL MEASURES TO BE TAKEN SUGGESTED
       AFTER THE STUDY ON IMPORTS OF PAKISTAN:


   Commodities are the way to go:
        Countries in the Developing World have always been grumbling about the unjust
       terms of trade. Whether in the 1960s or the 1980s, the refrain in the international
       trade forums has been that most developing countries are producers of commodities
       (whose prices are stagnant), while the Developed countries produce industrial goods
       (whose prices are buoyant). This results in unequal terms of trade between the two
       groups, thus trapping the Developing Countries in perpetual poverty. Now in a long,
       long time, there has arrived an opportunity for “the hewers of wood and drawers of
       water.” Thanks to the liberalization of international trade, great wealth has been
       generated globally. Tremendous growth rates achieved by countries like China and
       India have resulted in unprecedented demand for commodities, resulting in
       historically high prices. Our trade deficit is largely due to dollars expended on
       commodities, especially cotton, wheat, sugar, etc which Pakistan has a great
       potential to boost production of, given the large population engaged in agriculture.
       Similarly, import bill for petroleum can be significantly reduced, by developing bio
       fuels like ethanol and bio diesel, both requiring an agricultural production base
       which potentially Pakistan does possess. We should be celebrating and gearing up to
       take advantage of the rising commodity prices instead of mourning over them.


      Falling Exchange Rate is an implicit tariff on
       imports:

       We are living in an era of liberal trade regime. Using a floating exchange rate in a
       market economy, trade balance is the most important factor (besides interest rate and
       inflation) in determining our exchange rate. Vice versa, the floating exchange rate is
       also a corrective to negative trade balance. As the trade deficit rises sharply (like in

          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                           93
IMPORTS OF PAKISTAN                                                    MACRO ECONOMISS

       our case), the rupee starts to depreciate against dollar and other currencies of our
       major trading partners. This automatically would make our imports more expensive
       (for the local population) and our exports cheaper and more attractive for our trading
       partners. Thus as the basic economic theory would predict, imports should fall (if
       they are elastic) and exports should rise (if there are no supply constraints),
       correcting our deteriorating trade balance. In such a scenario, the talk of using tariff
       measures to restrict imports is not advisable, as the depreciating currency is already
       taxing the imports. In case of Pakistan, rupee-dollar exchange rate has changed from
       Rs.61 to Rs. 72 (in August 2008), thus imposing an implicit tariff of around 20
       percent on all of our imports. In such a situation, imposing tariff on even non-
       essentials would be of dubious use, besides creating distortions in the economy,
       resulting in what economists term as a „net welfare loss‟.


      To increase your exports you have to increase
       your imports:

        A mercantilist mindset of the 1960s is still strong and kicking in Pakistan when it is
       suggested that somehow we can strategize and boost our exports while at the same
       time cutting our imports through imposing tariffs. In this day and age of integrated
       trade and intra-industry trade, this dictum does not work. The more one aspires to
       boost exports, the greater is the need to allow imports freely. China is a great
       example. While it‟s annual exports are around one and a quarter trillion dollars, its
       imports are not far behind being near to the trillion dollar mark.


          Short-term, and Long-term Strategy:
       Even if under severe circumstance an economy decides to cut down its imports, it
       needs to design short-term, medium-term and long-term strategies. If the short-term
       focuses on reducing imports to improve balance of payment position, long-term shall
       focus on enhancing both exports and imports.



      Tight Fiscal & Monetary Policies:
       If the rise in imports is mainly because of rising aggregate demand due to rising
       incomes and remittances, and falling interest rates, tight monetary and fiscal policies
       can also bring down the imports. Since the State Bank has already taken a stringent
       stance, a downward pressure on imports is expected. With the rise in interest rates
       and raised margin requirements the imports are expected to fall. This stance would
       get a support from the fiscal side when tariff or non-tariff measures are taken.

           PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                          94
IMPORTS OF PAKISTAN                                                     MACRO ECONOMISS




      Inflation vs. Trade Deficit:
       Increasing the tariffs on imports can reduce the trade deficit, but it can also push
       inflation up, which is already galloping at a high rate. Hence, extreme care is
       necessary in identifying the exact tariff lines to be taxed. Price elasticity of the
       products need to be taken into account. Impact on substitutes & complementary
       products also needs to be considered.


      Which Commodities to be targeted for tariff
       hike:
       Our imports, when broken down into components, fall into the categories of
       industrial raw materials, capital goods, foods & grains, fuel & energy,
       pharmaceutical & other life saving drugs, and consumer goods.

              Industrial/agricultural raw materials, fuel & energy,
               and capital goods
               Cannot be considered for possible tariff hike, as it would have a direct
               negative impact on the country‟s industrial/agricultural growth.
              foods & grains
                (Which include edible oil, wheat, sugar, etc?) Are not good candidates for
               tariff hike, since it is a necessity for the whole population, and would cause
               further food inflation, which is likely to hit the common man.

              Pharmaceutical & other life-saving drugs

               Cannot be further taxed for obvious reasons.
              Consumer goods
                Can be libelled as non-essential goods, and be looked at for possible tariff
               hike. An attempt has been made to pick and choose such imported consumer
               goods for tariff hike, which either are produced locally as well, or which if
               not produced locally are consumed by the middle and upper classes. These
               could be items like imported cheese, mobile phones, toys, apparel, etc.
               Table---- at annex-----, details such possible items from the non-essential
               consumer goods category. Possible raised tariff levels are also suggested in
               the table, taking into consideration our Bounded Tariff commitments at the
               W.T.O.
          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                               95
IMPORTS OF PAKISTAN                                                    MACRO ECONOMISS



    Substitutes for Imports:

                  Ethanol a viable substitute for oil in motor
                   vehicles
                World food prices have risen sharply in recent months
                Trend is likely to continue as more and more agricultural land is
                 converted from the growing of food crops to crops like sugar cane
                 and maize
                It can be turned into ethanol – for use as a substitute for petrol in
                 automobiles
                This change is being driven by high oil prices, which have made
                 ethanol a cheaper substitute
                The surging import bill on oil can be reduced through the promotion
                 of this new initiative as substitute for motor vehicles oil
                It can save the foreign exchange of estimated 500 million dollars



                  Coal as Substitute for Gas
            There is an acute gas shortage all over the country besides power
            We have to use our coal reserves to convert into natural gas
            To overcome the shortage instead of importing gas at very high rates.
            Coal gasification and coal-to-liquid are some proven technologies
            This can be successfully employed in Pakistan to reduce dependence on
             imported oil and natural gas.
            Coal gasification offers one of the most versatile and cleanest ways
            Convert the energy content of coal into electricity, hydrogen, and other
             energy forms.

                  Bio diesel commercialization in Pakistan
            The majority of the worlds energy needs are supplied through
             petrochemical sources, coal and natural gas.
            All of these sources are finite and at certain usage rate will be consumed
             by the end of the next century.
            The depletion of the world petroleum reserves and increased
             environmental concerns has stimulated recent interest in alternative
             sources for petroleum based fuels.
            Bio diesel defined as “a substitute for, or an additive to Diesel fuel that is
             derived from the oils and fats of plants and animals”

        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                             96
IMPORTS OF PAKISTAN                                                MACRO ECONOMISS

            Môn alkyl esters of long chain fatty acids derived from a renewable lipid
             feedstock,
            Such as vegetable oil or animal fat, is becoming popular in developing
             countries as well as developed ones.

                 Compressed Natural Gas (CNG) as Inter Fuel
                  Substitution
            Hydrocarbon Development Institute of Pakistan
            (HDIP) has pioneered the use
            of environment friendly Compressed Natural
            Gas (CNG) in road transport
            As an economically viable inter-fuel import
            Substitution in petroleum sector.
            The commercial application of CNG
            technology now forms an important
            Element of Government‟s petroleum policy.
            HDIP‟s CNG stations also act as Advanced
            Fuel Resource Centre to advise the Government
            on safety and regulatory aspects
            To conduct inspection, training and
            Human resource development.

                 Canola Oil, a better substitute for Palm Oil
            Biomedical research shows that palm oil is high
            In saturated fat and develops heart diseases.
            The National Health Heart, Lung and Blood
            Institutes, World Health Organization have
            Advised less consumption of palm oil.
            On the other hand, Canola is considered
            by GRAS (Generally recognized as Safe)
            Oil by the USFDA.
            Canola oil diet was found to have immense health
            benefits for the bonding and reorganization of
            Tissues in the body.
            Researchers have discovered Regular average use
            of canola oil reduces the chances of heart stroke
            Benefits on cholesterol and on lowering blood
            Pressure.




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                        97
IMPORTS OF PAKISTAN                                                   MACRO ECONOMISS




                            Conclusion

Although the importance of imports can not be neglected but still excess of imports is one of
the obstacles on the way of development. In Pakistan, it has squeezed the major part of the
local producers. It needs to be controlled by strategic planning.

      Domestic production should be encouraged instead of imports.
      Investment should be given preference in consumer goods instead of luxuries.
      Agriculture sector should be given subsidies.
      Foreign investment should be attracted.
      Developed countries should be requested for financial and managerial assistance.

 And lastly a strong monitoring system should be established on different levels of imports
in order to have a sound evaluation of the process at every stage.




          PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                                         98
IMPORTS OF PAKISTAN                             MACRO ECONOMISS




        PUNJAB UNIVERSITY ,GUJRANAWALA CAMPUS                 99

				
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