Answer to Question #236382 in Economics for KAT

Question

Discuss the problems faced by Pakistan in its foreign trade?

Answer 1

Pakistani exporting firms face three broad challenges:

a) supply capacity;

b) standards and compliance; and

c) trade policy and facilitation.

Under supply capacity, firms regard high production and other business costs, low world market price and lean profit margins as impacting their performance.

Most present exporters had experienced minor problems in producing to market specifications, getting the right packaging material, production equipment and process technologies, labor skills and productivity.

However, supply capacity constraints are greater for small firms and potential exporters relative to medium and large firms. For most firms, export performance could be improved by reducing costs of doing business and raising productive efficiency.