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South Asian Free Trade Agreement (SAFTA):

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Origin of SAFTA

• SAPTA – Since of December 1995,– Objective of SAPTA to eliminate tariff and other trade

barriers– MALE Summit 1997, Approval to forum SAFTA

• SAFTA – Since of 6 Jan 2004 at 12th SAARC summit in

Islamabad – To reduce tariff 0-5% By 31st Dec 2015

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Objective of SAFTA

• To eliminate barriers to trade in, and to facilitate the cross-border movement of goods between the territories of the contracting state.

• To promote conditions of fair competition in the face trade area and to ensure equitable benefits to all contracting states, taking into account their respective levels and pattern of economic development.

• To create effectives mechanism for the implementation and application of the agreement.

• To establish a framework for further regional cooperation to expand and enhance the mutual benefits of this agreement.

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MEMBER OF SAFTA

Least Developing Countries Non – Least Developing Countries

Afghanistan Pakistan

Bangladesh India

Sri Lanka

Bhutan

Nepal

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TRADING PARTNER OF PAKISTAN Although Pakistan trades with a large number of countries, its exports

and import however are highly concentrated in few countries.

(Wikipedia.org)

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Items Exports ($ Million) % changeRice 1850.4 16.4Raw Cotton 196.1 41.8Cotton Cloth 2346.8 5.5Knitwear 1842.1 10.7Bed Wear 1767.3 20.4Readymade Garments 1580.8 7.5Other Textile Manufactures 819.8 4.0Petroleum Products 58.6 919.4Petroleum Naphtha 542.7 -Carpets, Rugs and Mates 106.5 10.0Sports Goods 286.1 6.6Leather Tanned 438.2 12.3Leather Manufactures 519.4 12.1Chemical and Pharma products 962.7 51.3

All other Manufactures 210.1 22.9

Economic survey of Pakistan 2014-15

Major Export of Pakistan

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Major Export of Pakistan

Overall exports recorded a growth of 4.24 percent during first ten months of 2013-14 (Jul-Apr) against a growth of 4.23

percent in the same period last year.

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Major Import of Pakistan Items Imports ($ Million) % Change

Milk and Milk Food 132.4 17.8

Wheat Unmilled 107.2 -

Dry Fruits 84.3 28.3

Spices 71.1 24.6

Sugar 5.1 24.1

Power Generating Machines 850.4 3.9

Textile Machinery 489.9 59.7

Construction and Mining Machines 209.7 71.5

Aircrafts, Ships and Boats 738.9 27.9

Petroleum Crude 4738.7 3.1

Electric Machines and Appliances 916.0 34.5

Synthetic Fiber 349.4 4.6

Silk Yarn 517.0 15.1

Fertilizer Manufactured 584.3 17.2

Insecticides 92.5 50.4

Plastic Material 1352.8 17.5

Iron Steel and Scrap 589.1 8.1

Economic survey of Pakistan 2014-15

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