Geography of Pakistan · Trade. The idea in plain words, the rules to remember, the mistake to avoid and a worked example, written and checked by Mega Lecture.
Pakistan sells goods to other countries (exports) and buys goods from them (imports). Its biggest export is cotton textiles and clothing. Since the 1950s it has moved from selling raw cotton to selling yarn, cloth and garments, which earn more because value is added in factories. Its biggest import is oil.
Pakistan usually spends more on imports than it earns from exports, so it has a balance of trade deficit. The gap has to be paid for with loans, foreign reserves or money sent home by workers abroad.
GDP and GNP both measure the size of an economy in a year. Learn exactly how they differ.
Students often say a deficit means exports are greater than imports. It is the other way round: a deficit means imports cost more than exports earn.
Answer: GNP = $368 billion.
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