Pakistan and German trade

Basic information about Germany

Germany, Founded date: January 18, 1871

Population:80,996,68 (July 2014 estimate)

Climate: temperate ,wet winters and summers.

Religions: Christians 97%,Muslim 3.7%, 2.8% others.

Government type: federal republic.

National capital: Berlin.

Currency:1 euro () = 100 cents

The GDP per capita in Germany is 39717.70 US dollars in 2014. It is equivalent to 314 percent of the world's average.

Basic information about Pakistan

Country name :PAKISTAN

Capital:Islamabad

Independence day:14 AUGUST.1947

Religions:Muslim 97% and other 3%

Languages:Punjabi, Urdu and English.

CURRENCY : rupees

GDP per capita was 818.87 US dollars in 2014.GDP is equivalent to 6 percent of the world's average.

GERMAN CULTURE

The Arts:-

Germans have made tremendous contributions to classical music

Business culture:-

Surprises and humor are not welcomed.

GERMAN CULTURE

Holidays and celebrations:-

Christmas and Easter. German Unification Day on October 3.

Countrys big beer bash is called "Oktoberfest, its starts each year on a Saturday in September and ends 16 to 18 days later.

German food culture

Apfelstrudel (apple strudel)

Eintopf

Kartoffelpuffer

Schwarzwalder Kirschtorte

GERMAN PAK RELATION

Germany, the largest and the healthiest economy in the European Union have long ties with Pakistan.

German textile machinery has played an important role in the development of Pakistans textile industry.

German plays a vital and an influential role in country's upcoming political events,financial crisis and whatever the matter is,

FREE TRADE TREATY

Trade between Pakistan and Germany is conducted in freely convertible currency in terms of the Trade Agreement signed in 1957.

Germany is Pakistans largest trading partner within the European Union, accounting for 20% of Pakistans total exports to the EU and 21% of Pakistans total imports from the EU.

IMPORTANT POINTS TO KNOW

Germany has now become the largest trading partner of Pakistan in Europe and fifth biggest source of foreign investment in the country.

Pakistan is also one of the first of Germanys partner countries to make use of innovative development funding instruments.

Germany is one of the most popular destinations for young Pakistani researchers wishing to pursue a PhD, alongside the USA, the United Kingdom and France.

PAKISTANS EXPORTS

Germany is a good market for Pakistani textile products, especially readymade garments, bed wear cotton fabrics and knitwear. The main items of exports included cotton fabrics, towels, synthetic textiles, cotton yarn, bed wear, cotton bags and other made-ups textiles, besides textile and clothing articles.

Germany also imports a variety of other products from Pakistan, which include: leather clothing, leather gloves, sports goods and surgical instruments.

Non-exportable or less-exportable items

Rice is exported to Germany but not in a vast volume because our rice is slim and they like to eat the healthier one. Bangladesh and Thailand and Philippines are the exporter of rice to Germany on a large scale.

Machinery is not exported to Germany.

Jewelery must be exported to Germany as they like the the heavy jewelry.

Should export

Olive Oil," Sesame Oil from roasted

and not roasted seeds" and Peanuts oil.

German are fond of mangoes.

Should as well try to export Fresh Ginger, Garlic,"Bengan.

WHAT DOES GERMANY IMPORT?

Crude

Petroleum

Vehicle,

Refined Petroleum

Computers

Packaged Medicaments

Planes, Helicopters, and/or Spacecraft

Human or Animal Blood

Integrated Circuits

Insulated Wire

Broadcasting Equipment

Semiconductor Devices

Gold

Aircraft Parts

Gas Turbines

Medical Instruments

Rubber Tires

Telephones

Seats

Impediments in trade relation with Germany

Trade in Limited products.

Series of cumbersome bureaucratic procedures.

Lack of trend of product diversification in Pakistani products.

Security situations also adversely affect the inflow of FDI by Germany.

Energy crisis.

Tax related issues.

Economy of Pakistan

Currency

1Pakistani Rupee(PKR)

Rs.1 = 100Paisas

Fiscal year

1 July 30 June

Trade organisations

ECO,SAFTA,ASEAN,WIPOandWTO

Statistics

GDP

$250 billion (nominal, 2014) $928 billion (PPP, 2015)

GDP rank

26th (PPP)42nd (nominal)

GDP growth

4.24%(2014)

GDP per capita

$1,513 (nominal)

$4,886.27(PPP;135th; 2015)

GDP by sector

agriculture: 25.1%, industry: 21.3%, services: 53.6% (2014 est.)

Inflation(CPI)

2.1% (April 2015)

Population belowpoverty line

12.4% (2014)

Labour force

31 million (201213)

Labour force by occupation

agriculture: 43%,construction: 15.2%,manufacturing: 13.3%,wholesaleandretail: 9.2%,transportandcommunication: 7.3% (201213)

Unemployment

6.6% (2013 est.)

Main industries

textilesandapparel,food processing,pharmaceuticals,construction materials,chemicals,cement,mining,machinery,steel,engineering,softwareand hardware,automobiles,motorcycleandauto parts,electronics,paper products,fertiliser,shrimp, defence products,shipbuilding

Ease-of-doing-business rank

104th (2015)

External

Exports

Total $30.414 billion (2013-14 est.), Goods $25.157 billion, Services $5.256 billion

Export goods

Linens(10%)CottonandYarn(9.2%)Rice(7.9%)Non-Knit Men's Suits (4.3%)Refined Petroleum (3.2%)Cement (2.3%)

Main export partners

United States13.3%China10.9%United Arab Emirates8.6%Afghanistan8.5%Germany5.1%

Imports

$41.668 billion (2013-14 est.)

Import goods

Food $4.15 billionMachinery $5.05 billionTransport Vehicles $1.66 billionTextile $2.29 billionFertilizers and other chemicals $6.86 billionRaw metal $2.7 billionRefined Petroleum $9.02 billionCrude Petroleum=$5.75 billion

Main import partners

China17%United Arab Emirates15%Kuwait8.8% (2012 est.)Saudi Arabia8.5%Malaysia4.8%

Public finances

Public debt

61.8% of GDP (2014-15)

Revenues

14.8% of GDP, Pkr 4.119 trillion or $40 billion

Expenses

19.5% of GDP, Pkr 5.412 trillion or $54 billion

Credit rating

Standard & Poor's: B- (Domestic)B- (Foreign)B- (T&C Assessment)Outlook: PositiveMoody's:B3Outlook: Stable

Foreign reserves

$17.7 billion (April 2015)

Theeconomy of Pakistanis the26th largestin the world in terms ofpurchasing power parity(PPP), and42nd largestin terms of nominalGross Domestic Product. As Pakistan has a population of over 186 million (the world's6th-largest), thusGDP per capitais $3,149 ranking140th in the world. Pakistan is a developing country and is one of theNext Eleven, the eleven countries that, along with theBRICs, have a potential to become one of the world's large economies in the 21st century.However, after decades of war and social instability, as of 2013, serious deficiencies in basic services such as railway transportation and electric power generation had developed.The economy is semi-industrialized, with centres of growth along the Indus River.Primary export commodities include textiles, leather goods, sports goods, chemicals and carpets and Rugs.

Growth poles of Pakistan's economy are situated along theIndus River;the diversified economies ofKarachiand major urban centers in thePunjab, coexisting with lesser developed areas in other parts of the country.The economy has suffered in the past from internal political disputes, a fast-growing population, mixed levels of foreign investment.Foreign exchange reservesare bolstered by steady worker remittances, but a growing current account deficit driven by a widening trade gap as import growth outstrips export expansion could draw down reserves and dampen GDP growth in the medium term.Pakistan is currently undergoing processeconomic liberalizationwith includes privatization of all government corporations, aimed to attractforeign investmentand decrease budget deficit.In 2014, foreign currency reserves crossed$15 billion which has led to stable outlook on the long-term rating byStandard & Poor's

Economic comparison of Pakistan 19992008

A view of I. I. Chundrigar Road, the financial district ofKarachiin Pakistan

Main Industries by Region - Pakistan. Source:[45]

Pakistan & its two largest City economies. Source:

Indicator

1999

2007

2008

2009

2015

GDP

$75 billion

$160 billion

$170 billion

$185 billion

$272.136 billion

GDP Purchasing Power Parity (PPP)

$270 billion

$475.5 billion

$504 billion

$545.6 billion

$928.43 billion (PPP,2015)

GDP per Capita Income

$450

$925

$1085

$1250

$1313

Revenue collection

Rs. 305 billion

Rs. 708 billion

Rs. 990 billion

Rs. 1.05 trillion

Rs 2.65 trillion

Foreign reserves

$1.96 billion

$16.4 billion

$8.89 billion

$17.21 billion

$17.7 billion

Exports

$8.5 billion

$18.5 billion

$19.22 billion

$18.45 billion

$30.414 billion (2013-14 est.)

Textile Exports

$5.5 billion

$11.2 billion

KHI stock exchange (100-Index)

$5 billion at 700 points

$75 billion at 14,000 points

$46 billion at 9,300 points

$26.5 billion at 9,000 points

Foreign Direct Investment

$1 billion

$8.4 billion

$5.19 billion

$4.6 billion

$0.803 billion[25]

External Debt & Liabilities

$39 billion

$40.17 billion

$45.9 billion

$50.1 billion

$56 billion

Poverty level

60%

43%

37%

29%

17%

Literacy rate

45%

53%

59%

61%

58%

Development programs

Rs. 80 billion

Rs. 520 billion

Rs. 549.7 billion

Rs. 621 billion

Rs758 billion

Agriculture[edit]

Main article:Agriculture in Pakistan

Agriculture by Province

Mango Orchard inMultan, Pakistan

The most important crops are wheat,sugarcane, cotton, and rice, which together account for more than 75% of the value of total crop output. Pakistan's largest food crop is wheat. In 2005, Pakistan produced 21,591,400 metric tons of wheat, more than all of Africa (20,304,585 metric tons) and nearly as much as all of South America (24,557,784 metric tons), according to theFAO.The country is expected to harvest 47 to 64 million tons of wheat in 2015. Pakistan has also cut the use of dangerous pesticides dramatically

Pakistan is a net food exporter, except in occasional years when its harvest is adversely affected by droughts. Pakistan exports rice, cotton, fish, fruits (especially Oranges and Mangoes), and vegetables and imports vegetable oil, wheat, pulses and consumer foods. The country is Asia's largestcamelmarket, second-largestapricotandgheemarket and third-largest cotton, onion and milk market. The economic importance of agriculture has declined since independence, when its share of GDP was around 53%. Following the poor harvest of 1993, the government introduced agriculture assistance policies, including increased support prices for many AGRICULTURAL COMMODITIESand expanded availability of agricultural credit. From 1993 to 1997, real growth in the agricultural sector averaged 5.7% but has since declined to about 4%. Agricultural reforms, including increased wheat and oilseed production, play a central role in the government's economic reform package.

Majority of the population, directly or indirectly, dependent on this sector. It contributes about 24 percent of Gross Domestic Product (GDP) and accounts for half of employed labor force and is the largest source of foreign exchange earnings.

Pakistan's Top Ten commodities by export value in 2011 were:

Commodity

Value [1000 USD]

Wheat

674424

Cotton lint

359341

Flour of Wheat

352014

Tangerines, mandarins, clem.

120893

Potatoes

102185

Cattle meat

71729

Maize

70028

Cotton Waste

65707

Dates

64081

Vegetables fresh nes

53136

Pakistan's principal natural resources arearable landand water. About 25% of Pakistan's total land area is under cultivation and is watered by one of the largest irrigation systems in the world. Pakistan irrigates three times more acres than Russia. Pakistan agriculture also benefits from year round warmth. Agriculture accounts for about 23% of GDP and employs about 44% of the labor force.Zarai Taraqiati Bank Limitedis the largest financial institution geared towards the development of agriculture sector through provision of financial services and technical expertise.

Pakistan is one of the world's largest producers of the following commodities according toFAOSTAT, the statistical arm of theFood and Agriculture Organisationof The United Nations, given here with the 2008 ranking:

Name

Global rank

Apricot

3rd

Buffalo Milk

2nd

Chickpea

3rd

Cotton, lint

4th

Cotton, Seed

3rd

Dates

5th

Mango

6th

Onion, dry

4th

Oranges

11th

Rice, paddy

11th

Sugarcane

5th

Tangerines

9th

Wheat

10th