An Analysis of the Composition, Direction, and Determinants of Pakistan's Exports (2000–2012)

Abstract

The main objective of the study is to explain changes in the composition and direction of exports and to highlight the factors which are responsible for changes and composition of exports for the year 1900-00 and 2011-12 in Pakistan. Secondary data has been used and taken from economic survey of Pakistan and Federal Bureau of Statistics. The study concludes that Export is a major source of foreign exchange earning which has a significant role in the development of an economy. Exports earning reduce the dependency of any country on external and internal borrowing. The merchandise export brings for us not only the foreign exchange but also enables us to import capital goods. To meet foreign exchange requirements, it is necessary to imports capital goods to convert the economy from the production and export of primary good to the production of manufactured goods. Trade has both benefits and costs. Trade benefits a country which is capable of producing quality goods for which there is adequate world demand.