Principles of Macroeconomics

Submitted to: Mr. Zia Abbas Rizvi

Project Report
on
International Trade
Trade deficit- A case of Pakistan

Prepared by

Ghulam Mustafa Memon (10107)

Ahmed Mujtaba (6775)

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 Abdul Qayoom Shah (10150)
Madeha Malik (10714)

Abstract
In most countries, International trade represents a significant share of gross domestic product
(GDP). While international trade has been present throughout much of history, its economic,
social, and political importance has been on the rise in recent centuries. Industrialization,
advanced transportation, globalization, multinational corporations, and outsourcing are all having
a major impact on the international trade system. Increasing international trade is crucial to the
continuance of globalization. International trade is a major source of economic revenue for any
nation that is considered a world power. Without international trade, nations would be limited to
the goods and services produced within their own borders. In this report we talk about a case of
Pakistan imports and exports and a significant change in trade deficit.

Pakistan's trade performance recorded a significant improvement during FY09. Country's trade
deficit recorded a large 18.5 percent contraction during FY09, breaking from the rising trend
witnessed since FY03. This was due to a 12.9 percent fall in imports during FY09 which
outpaced the impact of 6.7 percent fall in exports during this period.

In the wake of the global recession and a fall in international commodity prices, some slowdown
in country's import and export growth was expected during FY09. The impact of these
developments, however, was intensified by a broad range of domestic factors -especially the
energy crisis that led to a greater than expected fall in both exports and imports during this
period. Resultantly, exports and imports both recorded a broad based decline during FY09.

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Review of Literature
The global situation:

The global financial crises has severely hurt global aggregate demand, decimated liquidity in the
international capital markets, and reduced investor confidence. Consequently, world trade,
investment and industrial production fell sharply from the last quarter of 2008. These
developments adversely impacted social indicators globally, as unemployment is on rise and
poverty is likely to increase in developing economies.

Indeed, falling demand for emerging economies exports directly translated into slowing GDP
growth. This impact was heightened by the uncertainty (and increasing risk aversion) in
international credit markets. The countries with substantial macroeconomic imbalances were
particularly badly hit, as the access to international capital flows was abruptly curtailed, and their
governments were often not in a position to initiate counter-cyclical fiscal or monetary policies.

Current Scenario of Pakistan

According to the Statistics Division, in September 2009, exports rose 2.62 per cent to $1.52
billion and imports fell 4.31 per cent to $2.42 billion over previous month. A reduced trade
deficit is a very encouraging sign for the country which is struggling to safeguard its economy
from external shocks as a result of current account deficit, a factor that has disturbed the
country’s financial balance sheet for the last couple of years.

The FBS data show that trade deficit during September 2009 narrowed by 55.9 per cent over
September 2008. In the first quarter (July-September) of fiscal year 2009-10, the trade deficit
dropped by 44.74 per cent (or $2.50 billion) to $3.09 billion compared to $5.59 billion in the
corresponding period of last year. Imports stood at $7.58 billion during the period under review
while exports totaled $4.49 billion. During the same period of last fiscal, imports stood at $10.81
billion and exports $5.21 billion. That depicted a 29.85 per cent decline in imports and 13.86 per
cent fall in exports.

During FY09, exports declined by 6.0 percent against commendable increase of 18.2 percent in
the previous year. A large part of this fall stemmed from contraction in textile exports amid

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shrinking external demand due to global crises and severe domestic power shortages. However,
strong increase in rice and cement exports moderated the overall fall in exports during the period.
The increase in the former was principally driven by bumper rice crop while the increase in latter
mainly stemmed from strong demand from Middle East and some African countries. More than
two-third of the 10.5 percent contraction in imports during FY09, on the other hand, was due to
lower petroleum group, telecom group and raw cotton imports. Fall in petroleum group, in turn,
was largely (95 percent) caused by fall in oil prices while lower telecom group imports mainly
owed to imposition of custom duty on cellular phones and increase in GST on the telecom sector.
Likewise, lower raw cotton imports largely reflected better domestic cotton crop and lower
domestic demand.

In Nov-June FY09, steep fall in import prices, subsiding aggregate demand pressures and
significant exchange rate depreciation all contributed to a sustained contraction in imports. This
fall in imports, supported by strong growth in remittances, allowed a large contraction in the
current account deficit. In fact, the improvement in current account deficit would have been even
higher, were it not for a fall in foreign exchange earnings, and had there not been a fall in exports
during the period. Fall in exports, in turn, probably owed substantially to the severe power
shortages and unstable security situation, which further aggravated the impact of slowing
demand in Pakistan‘s major export markets.

The above figure depicts the historical perspective which portrays the effect of imports and
exports on current account deficit for last 19 years including GDP growth rate and oil prices.

Pakistan has little to gain from the system because of handful of its exportable products, resultant
of lack of diversification in export destinations as well as export items offered. Accordingly
Pakistan is facing a persistent trade deficit. It has eroded country’s forex reserves and also put
pressure on the value of currency. Pakistan, on account of its increasing trade imbalances, is

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unable to invest in hi-tech machinery and equipment to adhere to demanded standards of
products under preferential trade agreements already signed and to be signed with industrially
rich countries and also countries in South and South East Asia. Besides above high cost and
delays from inefficient practices at Customs, ports and transportation agencies prevent the
desired/envisaged enhancement in export volume.

Challenges for our exports

The principle reason for growing disconnect between the evolving global market structure and
our export performance is the erosion of the competitiveness of Pakistan’s traditional exports in
general and the country’s weakness in diversifying its product and market mix. The challenges
faced by Pakistan exports include:

-Infrastructure deficit, particularly in energy.

-Poor innovation and technological infrastructure.
-Low labor productivity.
-Low levels of manufacturing value addition.
-Little Foreign Direct Investment in manufacturing and exportable sectors.
-Anti-export bias in taxation.
-Increasing costs of exports as compared to imports.
-Lack of product and geographical diversification in exports.
- Absence of economies of scale in the production processes, especially in the Small and
Medium Enterprise sector which accounts for a vast majority of the enterprises in the country.

Our Imports
Imports registered a negative growth of 1.5 percent in July-February 2009. The imports stood at $ 23.8
billion as against $ 24.1 billion in the comparable period of last year. The growth in imports reflects
impact of substantial fall in oil and food imports in monetary terms and these two items were responsible
for 80 percent of additional imports bill last year. Import compression measures coupled with massive fall
in international oil prices have started paying dividends and imports witnessed marked slowdown during
the last two months.

The monthly import bill on account of petroleum has lost one-third of its value. The additional
import bill during the period July-February 2008-09 on account of petroleum and wheat was just
above the $1.0 billion. This massive addition is neutralized by massive negative contributions
from non-food and non-oil imports. Other positive contributors to additional import bill are
power generating machines which have added $435.2 million, agricultural chemicals other than
fertilizer ($213.4 million), and electrical machines & appliances ($92 million). The non-food and
non-oil imports showed negative growth of 7.8 percent which implies on drastic import
compression.

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The unit value of import of crude oil is still depicting 45 percent increase in the period July-
February 2008-09. The unit value of soya been and palm oil are also showing massive increases
of 62.9% and 22.8%, respectively in this period. This clearly reflects the time lag involved in
translating the benefit of lowering of prices in the international market into the import bill. The
consumer durables, transport group and telecom sectors are responding positively to the import
compression measures. The current growth in imports is coming from only a narrow range of
products and corrective measures are needed accordingly in these items.

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Introduction
Pakistan has bilateral and multilateral trade agreements with many nations and international
organizations. Pakistan’s exports are highly concentrated by commodity; currently the majority
of exports originate in the textiles and apparels sectors. The bulk of Pakistan’s trade is with
countries outside of South Asia. For example, textile exports are concentrated in China,
Bangladesh and Hong Kong. Leather exports are concentrated in Hong Kong, Italy and Republic
of South Korea. Vegetables and fruits are mainly exported to the United Arab Emirates, India,
Japan and Sri Lanka. Fish and fish products are exported to China, Japan, UK and USA, while
surgical instruments are largely destined for Germany and the USA. This pattern reflects in part
Pakistan’s specialization in products that are also exported by its neighbors. Recent analysis by
the World Bank indicates the potential for greater trade with India, notably in light manufactured
products (for example bicycle components and fans).

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. By looking at trade performance of Pakistan for the year 2008-09, we have
witnessed unprecedented economic downturn especially in our major markets of export i.e. USA
& EU. Consumption decreased in the developed world and the global trade shrank by 9%.
Global recession adversely affected exporting countries and Pakistan is no exception to it.
Exports from Pakistan declined to US$ 17.8 billion as compared to previous year’s exports of
US$ 19.1 billion. Imports also witnessed a relative decline and fell by 13% as Pakistan’s imports
during 2008-09 stood at US $ 34.9 billion as compared to US $ 40.4 billion in 2007-08.

During 2008-9, the export of Textiles, which account for around 54% of Pakistan’s total exports,
dropped from US$ 10.6 billion to US$ 9.6 billion. The major losers in this regard were
Readymade Garments, which dropped by 21.7%, Cotton Yarn, which dropped by 15%, Bed
linen, which dropped by 10.2%, Art Silk & Synthetic Textiles, which dropped by 22.1% and
Cotton Fabric by 4.0%. The exports of finished leather and leather manufacturers dropped from
US$ 1.1 billion to US$ 0.8 billion registering a drop 24.5%. The Rice exports have registered an
impressive growth from US$ 1.84 billion to US$ 1.99 with an increase of 8.2%. Engineering
goods also registered an increase of 26.1% from US$ 211.3 to US$ 266.4 million. In this regard,
the major contributors have been the specialized machinery, transport equipment, electric fans
etc. The export of Jewelry also rose from US$ 213.4 million to US$ 288.4 million, registering an
increase of 35%.

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The dismal performance of textile exports can be attributed, beside their structural issues, to
rising cost of production owing to increase in domestic cotton prices and stifling power
shortages. In addition, the deteriorating law and order situation in the country also resulted in
reported diversion of export orders to other countries. Poor quality of cotton on account of
contaminated cotton issue has also adversely affected the export of spinning industry.

Furthermore, textile exports appear to have also suffered from the slowdown in the US economy
that has been the largest destination for Pakistani exports during the last few years. In addition,
Pakistan also faced tough competition from China, India, Bangladesh and Turkey in the EU
market for textile apparel. In the case of bed wear exports; its exports to EU market are rising
after the reduction of anti-dumping duty on this category from the previous level of 13.1 percent
to 5.8 percent.

Taking a long term view of Pakistan’s export performance over the last ten years, Pakistan’s
share in the global market, according to WTO data, has declined by more than 1/3 to 0.13% in
2009 from 0.21 % in 1999.

During the last few decades, the global trade has undergone a major structural change as far as
the product composition and geography of trade is concerned. There has been an explosion of
non textile manufactured exports at the global level. Whereas, the share of non-textile
manufactured in Pakistan’s exports has gone down from an already low figure of US $ 5.83
billion (25.08%) in 2007-08 to US $ 3.12 billion in 2008-09 (17.32 %). At the same time, our
competitor economies, particularly in Asia, have significantly enhanced their share in non-textile
manufactured. As far as the Textile and Clothing sectors are concerned, the rate of growth in
Clothing is much higher than Textiles in the international market. Whereas, Pakistan, managing
to keep its market share in Textiles to an extent, has been slow in benefiting from the expansion
in higher value Clothing sector.

The world faces an unprecedented energy crisis, record high prices of agricultural commodities,
and global competitive markets for manufactured products. We are short of energy, low in
agricultural productivity and have a small and uncompetitive manufacturing base that is
responsible for stagnant exports – a major cause of the trade deficit.

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Methodology:
The following steps were taken to execute the study:

 A comprehensive study & research to get the maximum data from various internet sources, our
instructor, books and research articles.
 It was a group project report. Each member participated by reading articles and different material.
We then discussed every article and compiled successfully the final report.
 Many research journals and articles were thoroughly reviewed.
 Articles published in various newspapers like Daily Dawn, The news, business recorder, jang etc
and magazine Pakistan & Gulf Economist were thoroughly reviewed.
 Other sources like business plus, articles by economists and research analysts were also used.
 Statistical data from official websites like statistical bureau of Pakistan, State Bank of Pakistan,
Trading development authority of Pakistan, Export bureau, and others.
 This report covers all the facts and figures to show the trade deficit of Pakistan and position year
by year.
 The format of this report is according to what our instructor told us in class, all the
heading are covered in our report.

 Graphs and statistical data are enclosed at the end of the report.

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Conclusion
A reduced trade deficit is a very encouraging sign for the country which is struggling to
safeguard its economy from external shocks as a result of current account deficit, a factor that
has disturbed the country’s financial balance sheet for the last couple of years.

The merchandise trade deficit improved by 6.9 percent and declined from $12.5 billion in July-
February FY08 to $ 11.6 billion in July-February FY09. The substantial decrease of 42.0 percent
in imports outstripped otherwise significant decline of 17.9 percent in export growth which
caused the trade deficit to improve by 6.9 percent. This is the first ever improvement in the last
three years or so.

The trend has been portrayed in the above graph.

While this trend of decline in import is welcome trend the slower growth in exports is, however,
worrisome and cannot be easily dismissed as a byproduct of global recession because most of
our exportable commodities are relatively cheaper and, as such, their demand is largely inelastic
in the world market. Apparently, Pakistan could have earned more from its exports if the
authorities had succeeded in removing some of the major bottlenecks like energy shortages and
poor law and order situation, which is affecting the overall economic activity very adversely in
the country. In addition, it would have been much more preferable if the recent reduction in trade
deficit could have resulted primarily from higher growth in exports rather than the decline in
imports.

Curbing imports drastically is the only option as a short terms measure. As long-term measures,
they suggest an all out well coordinated plan to improve our exports for which they are
convinced, there is vast potential. In order to restrict the level of imports the Government has
taken some measures. It has imposed additional duties on more than 370 items and State Bank
has enhanced LC margin to 100% on import of Luxury items. These measures are not enough in
view of the seriousness of the problem; they maintained and suggested a total ban on import of
all non-essential items at least for a period of one year. They are of the view that through prudent
exploitation of national resources and planning we can boost our exports to cut our trade deficit
drastically. There is a vast potential and exports surplus available in textiles, carpet, leather and
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sports goods provided necessary incentives to these industries.

Agriculture is another sector with huge unexploited potential. A country that is currently footing
$5 billion bill on food imports could in fact reduce it to $1.5 billion, plus export agricultural
products of around $5 billion in one year if the government pays proper attention to this sector.
The legal system relating to agricultural marketing is in favor of trade and industry that
marginalizes the farmers. This is the reason that high commodity rates have not benefited
farmers much. Productivity of most of the major crops of Pakistan farmers is much below the
global standard.

Another neglected sector from export point of view is the services sector, which has big
potential. Export of services accounts for about 30% of exports worldwide. However,
unfortunately in our country the Ministry of Commerce has no much expertise in this area.

Policy Recommendation

The following points are recommended to improve trade deficit of Pakistan:

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  Pakistan needs more measures to cut on its petroleum imports either through looking into
alternative fuel sources or demand management. The import of edibles also needs to be
looked into carefully and may be given priority for domestic substitution.

 Government need to steps to enable the firms and entrepreneurs to become globally
competitive and export those products which are valued more in the international market.
This would involve structural transformation in the form of increased mobility of labor
and capital across sectors and change their production processes and ultimately the
content of exports.

 A total ban on import of all non-essential items at least for a period of one year

 Deepen and diversify export markets particularly our major trading partners US and EU
as well as countries with which Pakistan has signed a free trade agreement such as China,
Malaysia and Sri Lanka.

 Promote trade in services which globally have a more stable demand pattern and are less
prone to detrimental external shocks seen for the case of commodity trading. Acquire and
upgrade technology level so that Pakistan can move away from the traditional and low
value export products.

 Rationalize the tariff policy keeping in view the structure of value addition in various
industries.

 Promote agro-processed exports

 Devise a medium term strategy to boost exports of gems and jewellery.

 Provide incentives to facilitate technology acquisition, adoption, replacement with the

twin objectives of energy efficiency and environmental protection

 Pakistan does not have a comprehensive energy policy; it has made limited progress in
agricultural productivity; its main industry – textiles – is struggling to compete in global
markets; its real interest rates remain negative; and the domestic capital markets do not
have the depth to mobilize capital to meet its development needs. So Pakistan needs to
focus on all these issues.

 The government must try to develop a consensus among the provinces on water and
hydro power issues. Regardless of the reservations of small provinces, they all must come
to an agreement on what our long- term needs are.

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Reference

1 Trade Development Authority of Pakistan

http://www.epb.gov.pk/v1/statistics/index.php

2 State Bank of Pakistan

http://www.sbp.gov.pk/ecodata/index2.asp#external
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 State Bank of Pakistan Annual Report for 2008-2009

3 The Federal Bureau of Statistics

http://www.statpak.gov.pk/

4 Newspapers & Magazine

http://www.brecorder.com.pk/
http://www.thenews.com.pk/daily_detail.asp?id=202564
http://www.thenews.com.pk/blog/blog_details.asp?id=234
http://jang.com.pk/thenews/nov2008-weekly/busrev-17-11-2008/index.html
http://www.nation.com.pk/pakistan-news-newspaper-daily-english-online/Business/10-
Mar-2009/Trade-deficit-imports-decrease-in-Feb
http://www.pakistaneconomist.com

5 Pakistan’s Economy: The regional comparison.

http://thefinancialdaily.com/NewsDetail/81470.aspx

6 Pakistan’s Trade Policy, 1999–2008: An Assessment by Mirza Qamar Baig, PIDE.

7 External trade sector is worrisome!

http://finance.kalpoint.com

8 http://www.opfblog.com/2596/pakistan-economic-survey-paints-a-dismal-picture/

9 http://forum.pakistanidefence.com/lofiversion/index.php/t59133.html

10 http://web.worldbank.org

11 Report on Trade Related Challenges Facing Exporters in Pakistan by PIDE

12 Article: Continuity or change in policy?

By Yousuf Nazar
http://www.dawnnews.tv/wps/wcm/connect/dawn-content-library/dawn/in-paper-
magazine/economic-and-business/continuity+or+change+in+policy

13 Article: July trade deficit narrows by 31 per cent By Mubarak Zeb Khan Wednesday, 12
Aug, 2009 Dawn news

14 Article: Trade with neighbours by Mohiuddin Aazim Monday, 17 Aug, 2009 Dawn news

15 Article: Trade deficit down 44.74pc in July-Sept By: Imran Ali Kundi | Published:
October 11, 2009 Dawn news

16 Report by Merrill Lynch Research Report by Muzammil Aslam, Economist, KASB

Securities. 10 July 2008

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 Appendix
Table 1: Import and Exports of Pakistan 25 years

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17
 Table 2

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 Chart 2
Textile sector of Pakistan

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 Table 3 - Structure of Exports
($ Million)
July-February Change Absolute % Contribution to
Particulars Increase/ Increase in
2007-08 2008-09 (%) Decrease Exports
A. Food Group 1,425.1 2,099.3 47.3 674.3 136.2
B. Textile Group 6,854.0 6,470.4 -5.6 -383.6 -77.5
C. Petroleum Group 730.8 589.2 -19.4 -141.6 -28.6
D. Other Manufacturer 2,232.7 2,444.4 9.5 211.7 42.7
E. All Other Items 417.9 552.4 32.2 134.5 27.2
Total 11,660.5 12,155.7 4.2 495.2 100.0
Non-Textile 4,806.5 5,685.3 18.3 - -
Share of Textile 58.8 53.2 - - -
Share of Non-Textile 41.2 46.8 - - -

Table 4 - Structure of Imports

($ Million)
July-February Absolute % Cont. of
Increase absolute
Particulars 2007-08 2008-09 % Change increase
Total Imports 24,137.9 23,770.5 -1.5 -367.4 100.0
A Food Group 2,511.3 2,749.6 9.5 238.4 -64.9
Wheat Unmilled 369.0 838.0 127.1 469.0 127.7
B Machinery Group 3,497.9 3,698.0 5.7 200.1 -54.5
Power Gen. Machine 647.9 1083.1 67.2 435.2 -118.5
C Petroleum Group 6,340.2 6,921.2 9.2 581.0 -158.1
D Textile Group 1604.7 1037.4 -35.4 -567.3 154.4
E Agri Chemicals Group 3,653.6 3,528.9 -3.4 -124.7 33.9
Fertilizer 625.5 365.7 -41.5 -259.8 70.7
F Consumer Durables 3,259.2 2,026.5 -37.8 -1,232.7 335.5
Road motor Vehicles 855.8 622.8 -27.2 -233.0 63.4
G Telecom 1,427.9 716.3 -49.8 -711.6 193.7
H Raw Materials 2,192.2 2,096.3 -4.4 -95.9 26.1
I. Others 1,862.4 2,165.0 16.2 302.6 -82.4
Non-Food, Non-Oil 15,286.4 14,099.7 -7.8 -1186.7 258.1

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 Non-Oil Imports 17,797.7 16,849.3 -5.3 -948.3 323.0

Table 5

PAKISTAN TRADE AND BUDGET DEFICIT 1976-2008

(Rs in millions)

S.No Years Trade Deficit Budget Deficit

01 1976 9212 13065

02 1977 11718 13261
03 1978 14835 14416
04 1979 19463 18250
05 1980 23519 16127
06 1981 24264 16637
07 1982 33212 19076
08 1983 33709 27940
09 1984 39368 27712
10 1985 51799 39416
11 1986 11354 44586
12 1987 29076 48529
13 1989 34106 63352
14 1989 45658 62068
15 1990 42384 62840
16 1991 32832 89193
17 1992 58161 89971
18 1993 81615 107525
19 1994 52751 92179
20 1995 69719 105352
21 1996 102834 137839
22 1997 139688 156588
23 1998 63178 204560
24 1999 75622 179177
25 2000 90114 196600
26 2001 87930 164900
27 2002 73683 202150
28 2003 62078 177400
29 2004 188789 162000
30 2005 368991 216967
31 2006 726317 325300

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 32 2007 822494 502011
33 2008 1304153 683400

Table 6
Export Data – Commodity wise

S. COMMODITY BY COUNTRIES 2005-06 2006-07 2007-08

NO % % %
. EXPORT SHARE EXPORT SHARE EXPORT SHARE

A TEXTILE & GARMENTS CATEGORY

1 RAW COTTON 68,151 0.41 50,226 0.30 70,122 0.37
2 COTTON YARN 1,382,874 8.41 1,428,041 8.41 1,300,968 6.83
3 YARN OTHER THAN COTTON YARN 36,996 0.22 67,193 0.40 46,792 0.25
4 COTTON CLOTH 2,108,183 12.81 2,026,388 11.94 2,010,611 10.55
5 KNITTED CROACHED FABRICS 51,378 0.31 63,568 0.37 71,666 0.38
6 READY-MADE GARMENTS 1,309,990 7.96 1,384,775 8.16 1,452,477 7.62
7 KNITWEARS 1,751,494 10.65 1,961,048 11.55 1,872,030 9.83
8 TEXTILE MADE UPS. 3,043,582 18.50 3,069,651 18.08 2,440,569 12.81
a) BED WARE 2,038,064 12.39 1,995,899 11.76 1,903,501 9.99
b) TOWELS 587,641 3.57 602,547 3.55 613,065 3.22
c) TEXTILE MADE UPS (EXCL.TOWEL&BEDWARE) 417,877 2.54 471,205 2.78 537,068 2.82
9 TENTS AND CANVAS 38,902 0.24 69,060 0.41 71,050 0.37
10 ART SILK AND SYNTHETIC TEXTIL 200,308 1.22 419,724 2.47 410,308 2.15

B OTHER CORE CATEGORIES

1 RICE 1,157,814 7.04 1,125,819 6.63 1,836,063 9.64
a) RICE BASMATI 479,616 2.92 556,320 3.28 1,068,862 5.61
b) RICE OTHER VARIETIES 678,198 4.12 569,499 3.35 767,201 4.03
1,157,8 7.0 1,125,8
14 4 19 6.63 1,836,063 9.64
2 LEATHER PRODUCTS 1,014,948 6.17 911,065 5.37 1,114,760 5.85
a) LEATHER 292,394 1.78 356,884 2.10 415,261 2.18
b) APPAREL & CLOTHING 501,786 3.05 388,115 2.29 528,154 2.77
c) LEATHER GLOVES 151,459 0.92 132,589 0.78 161,168 0.85
d) OTHER LEATHER MANUFACTURES 69,309 0.42 33,477 0.20 10,177 0.05
1,014,94 6. 911,06 5. 1,114,7
8 17 5 37 60 5.85
3 FOOTWEAR 145,220 0.88 1,144,516 6.74 124,135 0.65
4 SPORTS GOODS 343,329 2.09 288,383 1.70 302,723 1.59
5 CARPETS 257,263 1.56 233,334 1.37 216,620 1.14
6 SURGICAL GOODS,MEDICAL 163,078 0.99 190,789 1.12 261,072 1.37
7 PETROLEUM PRODUCTS 825,654 5.02 858,379 5.06 1,259,330 6.61
8 MOLASSES 43,592 0.26 28,085 0.17 54,681 0.29

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 Table 7
Cumulative Imports by Major Countries

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 (Millions)

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 Table 8
Cumulative Exports by Major Countries (Million Rs)

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 Table 9

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 Chart 3

Chart 4

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