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What Is Trade Deficit.ppt
What Is Trade Deficit.ppt
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CPEC.ppt

  1. 1. CPEC Increase the volume of trade between Pakistan and china Take full advantage of preferential trade agreement(PTA) and free trade agreement (FTA) Increase export to china, recently export to china is $3.14 billion High Widen Karakorum way and open new economic corridor from china to Gwadar
  2. 2. Expand trade with Afghanistan and it help both countries to play their role in post-2014 Afghanistan Expand trade with Russia by providing trade route till Gwadar port Development of infrastructure along Pakistan Enhance trade among Pakistan, China, Gulf States, Central Asia and Africa GDP growth of Pakistan likely to increase enormously (Presently being 4.1) Export or Import on equal basis because Pakistan import more goods than export.
  3. 3. What Is Trade Deficit? The amount by which the cost of a country's imports exceeds the value of its exports.
  4. 4. Causes • Current account deficit: more money is leaving the country than flowing into it. • Domestic companies: when domestic company manufactures a lot of its products in other countries.
  5. 5. Trade Deficit of Pakistan • PKR 237.4 billion in October of 2016 • 226.9 billion a year ago. • Exports rose 2.1 percent to PKR 183.7 billion • while imports went up 3.5 percent to PKR 421 billion.
  6. 6. Cause s • High imports of energy. • Increase in heavy debt servicing and decreased developmental expenditures is a reason for trade deficit in Pakistan.
  7. 7. How To Develop The ExportSector? • Stage 1 ‘factor’-driven economies, where countries compete primarily on the use of unskilled labor and natural resources and companies compete on the basis of price as they buy and sell basic products or commodities • Stage 2 ‘efficiency’-driven economies, where growth is based on the development of more efficient production processes and increased product quality. • Stage 3 ‘innovation’-driven economies, where companies compete by producing and delivering new and different products and services by using the most sophisticated processes.
  8. 8. Referenc e • http://atlas.media.mit.edu/en/ • http://www.cpec.gov.pk/ • http://herald.dawn.com/news/1153597 • http://www.cpecinfo.com/ • http://www.tradingeconomics.com/pakistan/imports • http://www.slideshare.net/cococorina/import-export-ibf

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