The United Kingdom - Pakistan Trade

UK WAS PAKISTAN’S THIRD LARGEST EXPORT DESTINATION IN 2018 RANK COUNTRY EXPORT VALUE (US$) % SHARE IN TOTAL EXPORTS World 23,630,893,000 1 United States of America 3,802,500,000 16% 2 China 1,818,069,000 8% 3 United Kingdom 1,728,637,000 7% 4 Afghanistan 1,347,934,000 6% 5 Germany 1,310,444,000 6 United Arab Emirates 983,575,000 4% 7 Netherlands 942,802,000 8 Spain 922,898,000 9 Bangladesh 783,825,000 3% 10 Italy 771,593,000 EU is Pakistan’s largest export market and the UK is the most important export market within the EU

UK WAS THE SINGLE LARGEST EXPORT DESTINATION WITHIN THE EU IN 2018 The EU is Pakistan’s largest export market representing 34% of exports The UK accounted for 22% of total EU exports from Pakistan in 2018. EU is Pakistan’s largest export market and the UK is the most important export market within the EU

UK RANKS NO. 15 IN PAKISTAN’S IMPORT SOURCES COUNTRY IMPORT VALUE (US$) % SHARE IN TOTAL EXPORTS World 60,162,862,000 1 China 14,544,687,000 24% 2 United Arab Emirates 8,668,637,000 14% 3 Saudi Arabia 3,242,349,000 5% 4 United States of America 2,946,715,000 5 Indonesia 2,502,372,000 4% 6 Qatar 2,386,183,000 7 Japan 2,273,024,000 8 India 1,928,465,000 3% 9 Thailand 1,430,727,000 2% 15 United Kingdom 865,231,000 1% EU is Pakistan’s largest export market and the UK is the most important export market within the EU

WITHIN THE EU, UK WAS THE SECOND HIGHETS EXPORTER TO PAKISTAN IN 2018 EU is Pakistan’s 3rd largest import partner after China and UAE. Imports from the EU stood at $5.46 billion in 2018. The UK accounts for 16% of Pakistan’s imports from the EU and 1.4% of total imports from the world. The UK is the second most important import supplying market of Pakistan in the EU

PAKISTAN UK Trade Trends

PAKISTAN’S TOP 10 EXPORTS TO the uk HS CODE DESCRIPTION EXPORT VALUE 2016 (US$) EXPORT VALUE 2017 (US$) EXPORT VALUE 2018 (US$) 630239 Bedlinen of textile materials 218,877,000 226,218,000 219,605,000 620322 Men's or boys' ensembles of cotton 97,241,000 140,989,000 149,226,000 630231 Bedlinen of cotton (excluding printed, knitted or crocheted) 85,753,000 97,367,000 99,216,000 630210 Bedlinen, knitted or crocheted 103,722,000 93,498,000 85,991,000 100630 Semi-milled or wholly milled rice, whether or not polished or glazed 23,926,000 26,182,000 79,312,000 630260 Toilet linen and kitchen linen, of terry towelling or similar terry fabrics of cotton 79,194,000 80,155,000 75,361,000 610590 Men's or boys' shirts of textile materials, knitted or crocheted 64,715,000 75,489,000 72,628,000 611090 Jerseys, pullovers, cardigans, waistcoats and similar articles, of textile materials, knitted . . . 41,343,000 39,692,000 58,951,000 610349 Men's or boys' trousers, bib and brace overalls, breeches and shorts of textile materials 34,745,000 41,602,000 48,564,000 610910 T-shirts, singlets and other vests of cotton, knitted or crocheted 25,154,000 29,984,000 38,236,000

PAKISTAN’S TOP 10 IMPORTS FROM the uk HS CODE DESCRIPTION IMPORT VALUE 2016 (US$) IMPORT VALUE 2017 (US$) IMPORT VALUE 2018 (US$) 720441 Turnings, shavings, chips, milling waste, sawdust, filings, trimmings and stampings of iron . . . 133,466,000 188,724,000 252,662,000 720449 Waste and scrap of iron or steel (excluding slag, scale and other waste 64,090,000 99,045,000 138,078,000 271111 Natural gas, liquefied 1,000 2,000 33,682,000 630900 Worn clothing and clothing accessories, blankets and travelling rugs, household linen 25,721,000 23,450,000 26,964,000 847130 Data-processing machines, automatic, portable, weighing <= 10 kg,. 10,683,000 17,712,000 21,451,000 382499 Chemical products and preparations of the chemical or allied industries, - 20,893,000 19,283,000 300490 Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes 9,301,000 11,447,000 11,978,000 850213 Generating sets with compression-ignition internal combustion piston engine "diesel or semi-diesel . . . 12,127,000 14,154,000 10,758,000 780110 Unwrought lead, refined 29,351,000 30,152,000 10,168,000 550490 Artificial staple fibres, not carded, combed or otherwise processed for spinning 14,897,000 15,492,000 9,197,000

TRADE COMPLIMENTARITY* * Trade complementarity is the ability of each country to satisfy the other’s import needs from its existing export pool

ACTUAL EXPORTS IN 2018 (US$) POTENTIAL EXPORTS IN 2018 (US$) Pakistan’s Theoretical Potential* for Additional Exports to the UK, 2017 Top 10 Potential Products (HS 06). Aggregate Theoretical Potential $2.3 Bn HS CODE DESCRIPTION ACTUAL EXPORTS IN 2018 (US$) POTENTIAL EXPORTS IN 2018 (US$) 220710 Undenatured ethyl alcohol, of actual alcoholic strength of >= 80% - 385,263,000 901890 Instruments and appliances used in medical, surgical or veterinary sciences, n.e.s. 34,888,000 338,294,000 620342 Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton (excluding ... 34,003,000 314,986,000 270900 Petroleum oils and oils obtained from bituminous minerals, crude 262,067,000 271019 Medium oils and preparations, of petroleum or bituminous minerals, not containing biodiesel, ... 235,930,000 170199 Cane or beet sugar and chemically pure sucrose, in solid form (excluding cane and beet sugar ... 229,982,000 610910 T-shirts, singlets and other vests of cotton, knitted or crocheted 38,236,000 204,467,000 611595 Full-length or knee-length stockings, socks and other hosiery, incl. footwear without applied ... 16,779,000 197,988,000 630260 Toilet linen and kitchen linen, of terry toweling or similar terry fabrics of cotton (excluding ... 75,361,000 166,521,000 420310 Articles of apparel, of leather or composition leather (excluding clothing accessories, footwear ... 20,430,000 166,260,000 8 of the 10 high potential exports already benefit from 0% tariffs under GSP+. The two products that don’t are rice and sugar which are unlikely to receive preferential treatment even under an FTA *Theoretical potential from diverting Pakistan’s existing exports from other countries to meet UK’s imports, ignoring competitiveness and tariffs

ACTUAL IMPORTS IN 2018 (US$) Pakistan’s Theoretical Potential* for Additional Imports from the UK, 2017 Top 10 Potential Products (HS 06). Aggregate theoretical potential is $4 BN HS CODE ACTUAL IMPORTS IN 2018 (US$) POTENTIAL IMPORTS IN 2018 (US$) 851712 Telephones for cellular networks "mobile telephones" or for other wireless networks 69,000 833,005,000 720449 Waste and scrap of iron or steel (excluding slag, scale and other waste of the production of ... 138,078,000 811,168,000 300490 Medicaments consisting of mixed or unmixed products for therapeutic purposes 11,978,000 420,818,000 870321 Motor cars and other motor vehicles principally designed for the transport of persons, incl. ... 125,000 367,319,000 390110 Polyethylene with a specific gravity of < 0,94, in primary forms 15,000 336,935,000 390210 Polypropylene, in primary forms 11,000 302,525,000 870322 256,000 291,624,000 870323 631,000 266,094,000 847130 Data-processing machines, automatic, portable, weighing <= 10 kg, consisting of at least a ... 21,451,000 264,722,000 630900 Worn clothing and clothing accessories, blankets and travelling rugs, household linen 26,964,000 256,348,000 In the high potential imports of Pakistan from the UK, most products already face tariffs similar to those faced by Pakistan’s FTA partners *Theoretical potential from switching imports from existing sources to UK exporters, ignoring competitiveness and tariffs