Pakistan’s Trade Competitiveness & Complementarities in South Asia


Dawood Mamoon
Sohail Paracha


Over the past decade Pakistan remained involved in two major trade agreements with in the South Asia (Pakistan & Sri-Lanka FTA and SAFTA). It is meaningful from an operational and policy perspective to evaluate Pakistan’s trade performance in South Asia against its objectives of greater trade integration and suggest policy interventions to improve its effectiveness. In order to achieve this objective, current study evaluates the Pakistan’s overall and chapter-wise trade performance with SAARC major SAARC economies for the last seven years (2003-09). This study has been disaggregated into two parts: In the first part of the study, an assessment of trade performance of SAARC members is carried out with respect to the rest of the world. Pakistan’s trade performance vis-à-vis other SAARC members is the focus of this part. In the second part Pakistan’s trade performance in South Asia has been analyzed and policy interventions have been suggested to improve its effectiveness. Certain trade indicators like Trade Complementarity Index (TCI), Trade Specialization Index (TSI), Grubel Lloyd Index (GLI), Revealed Comparative Analysis (RCA), Bilateral Revealed Comparative Analysis BRCAs and Revealed Market Access (RMA) have been employed to achieve the above objectives.


Objective of Study
Data and Methodology
Literature Review

1. SAARC’s Trade Performance (World and Intra-regional trade) Comparison between World and Intra-regional Trade Shares
Exports Performance (World)
Exports Performance (Intra-regional)
ImportPerformance (World)
ImportsPerformance (Intra-regional)

2. Pakistan’s Trade Performance in SAARC
Pakistan’s ExportsPerformance in SAARC
Pakistan’s Imports Performance in SAARC

3.Commodity Wise Share in Intra-Regional Trade (Exports and Importsof Pakistan to Major South Asian Countries)
Pakistan’s Trade with India
Pakistan’s Trade with Sri Lanka
Pakistan’s Trade with Bangladesh

4.Trade Indicators Analysis (Competitiveness and Complementarities)
Trade Complementarily Index
TCI: Pakistan Exportto SAARC
TCI: SAARC Exports to Pakistan
Revealed Comparative Advantage
Regional Revealed ComparativeAnalysis
RevealedMarket Access
Summary of RCA, BRCAand RMA
Grubel-Lloyd Index
Intra Industry Trade between Pakistan and India
Intra Industry Trade between Pakistan and SriLanka
Intra Industry Trade between Pakistan and Bangladesh

5. Conclusion & Recommendations



About Author

Dr. Dawood’s research interests center on issues of national competitiveness. His research, published in the Journal of Peace Research and Economics of Governance, finds that bilateral and multilateral trade mitigates conflict between India and Pakistan, and would like to extend his analysis to look at how spending on education or levels of education behave with respect to conflict. He believes that one reason poverty has not been significantly reduced in some developing countries is due to prevalent conflict. He also is director of the Center for Graduate Research. Among the courses he teaches is Harvard Business School’s microeconomics of competitiveness. He also supervises Ph.D and MS research and manages MS programs in the School of Business and Economics. Dawood holds a Ph.D in Economics of Sustainable Development and an MA in Development Economics, both from Erasmus University, the Netherlands. He also holds an MPhil and an MS in Economics, both from Quaid-e-Azam University in Pakistan.



Date of Publication

December 15, 2018

File Size: 1955 KB
Length: x + 60 pages

Other KSP Books

Other KSP Books