SOAS Research Online

Abstract

Western Europe accounts for more than 40% of Pakistan's export trade. It is therefore natural that Pakistan should watch the movement towards economic and political integration in Western Europe closely. However, Pakistan businessmen have projected a frightful picture of impending trade disruption and gloomy export prospects. But there has really been no systematic attempt in Pakistan to assess the real size of the country's problems in the context of the integration moves in Europe. The present work tries to fill this gap and its purpose is to assess the implications of the E.E.C. for the export trade of Pakistan and export prospects for 1965-70.;The whole study has been divided into three parts. In part one an attempt is made to find out the casual factors at work that can reasonably explain the past trends in the export trade of Pakistan. Part II of this study is devoted to the analysis of Pakistan's major exports to the U.K. and the E.E.C. during 1951-63. Our analysis shows that the establishment of the E.E.C. has not seriously adversely affected Pakistan's exports; and that Pakistan's exports of major primary products to this area declined primarily due to production and export policies of Pakistan. The association of certain African countries with the E.E.C. has also created no serious challenge for Pakistan's exports. However due to high tariffs or other restrictions, Pakistan's exports of manufactured goods to the have not increased significantly.;The third part of this study is devoted to analysis of prospects of Pakistan's exports to the U.K. and the E.E.C. during 1965-70. And it shows that any significant increase in Pakistan's exports to these areas is not possible. This is because the third Five Tear Plan of Pakistan has projected substantial increase in exports of items like jute manufactures, fish, rice and minor manufactured or semimanufactured goods. And exports of such items to the U.K. and the E.E.C. countries is insignificant and even a hundred per cent increase in exports of these items to the U.K. and the E.E.C. during 1965-70 would not substantially affect Pakistan's total foreign exchange earnings from these countries.;Finally it is observed that the U.K.'s entry into the Common Market would adversely affect Pakistan's exports of manufactured goods to this country which at present is an important market for Pakistan's exports of manufactured goods.