1. Italy - Pakistan Trade

2. ITALY WAS PAKISTAN’S TENTH 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

3. ITALY WAS THE FIFTH LARGEST EXPORT DESTINATION WITHIN THE EU IN 2018
The EU is Pakistan’s largest export market representing 34% of exports
Italy accounted for 10% 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

4. ITALY RANKS NO. 19 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% 19
Italy
623,935,000 1%
EU is Pakistan’s largest export market and the UK is the most important export market within the EU

5. WITHIN THE EU, ITALY WAS THE THIRD HIGHEST 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.
Italy accounts for 11% of Pakistan’s imports from the EU and 1% of total imports from the world.
The UK is the second most important import supplying market of Pakistan in the EU

6. PAKISTAN ITALY Trade Trends
Bilateral trade increased from US$ 1.24 bn in 2014 to US$ 1.4 bn in 2018 i.e. by 12.9% in five years
Pakistan’s exports to Italy rose by 0.7% during this period.
Meanwhile, Italy’s exports to Pakistan rose by 33% during the last five years.
The trade surplus has declined during the last five years, from $298 Mn in 2014 to around $148 Mn in 2018.

7. PAKISTAN’S TOP 10 EXPORTS TO ITALY
HS CODE
DESCRIPTION
EXPORT VALUE 2016 (US$)
EXPORT VALUE 2017 (US$)
EXPORT VALUE 2018 (US$)
630231
Bedlinen of cotton (excluding printed, knitted or crocheted)
60,165,000
64,373,000
75,310,000
100630
Semi-milled or wholly milled rice, whether or not polished or glazed
11,150,000
15,289,000
42,534,000
630260
Toilet linen and kitchen linen, of terry towelling or similar terry fabrics of cotton (excluding ...
32,538,000
32,054,000
38,537,000
520812
Plain woven fabrics of cotton, containing >= 85% cotton by weight and weighing > 100 g to
26,588,000
28,555,000
32,870,000
620342
Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton (excluding ...
34,116,000
37,109,000
31,345,000
620322
Men's or boys' ensembles of cotton (excluding knitted or crocheted, ski ensembles and swimwear)
16,943,000
23,071,000
25,567,000
630210
Bedlinen, knitted or crocheted
17,331,000
19,049,000
22,901,000
630239
Bedlinen of textile materials (excluding of cotton and man-made fibres, printed, knitted or ...
21,751,000
22,029,000
21,506,000
220710
Undenatured ethyl alcohol, of actual alcoholic strength of >= 80%
11,333,000
12,087,000
18,728,000
410712
Grain splits leather "incl. parchment-dressed leather", of the whole hides and skins of bovine ...
21,162,000
18,253,000
18,335,000

8. PAKISTAN’S TOP 10 IMPORTS FROM ITALY
HS CODE
DESCRIPTION
IMPORT VALUE 2016 (US$)
IMPORT VALUE 2017 (US$)
IMPORT VALUE 2018 (US$)
300490
Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, ...
30,100,000
34,757,000
42,918,000
271111
Natural gas, liquefied -
27,555,000
844319
Printing machinery used for printing by means of plates, cylinders and other printing components ...
15,633,000
18,209,000
21,076,000
845180
Machinery for dressing, finishing, coating or impregnating textile yarns, fabrics or other ...
10,289,000
11,894,000
15,355,000
847982
Mixing, kneading, crushing, grinding, screening, sifting, homogenising, emulsifying or stirring ...
294,000
1,393,000
13,977,000
844711
Circular knitting machines, with cylinder diameter <= 165 mm
4,598,000
6,956,000
13,890,000
270400
Coke and semi-coke of coal, of lignite or of peat, whether or not agglomerated; retort carbon
9,577,000
10,641,000
13,694,000
845521
Hot or combination hot and cold metal-rolling mills (excluding tubes mills)
122,000
4,373,000
13,141,000
843629
Poultry-keeping machinery (excluding machines for sorting or grading eggs, poultry pickers ...
1,331,000
3,056,000
11,407,000
841989
Machinery, plant or laboratory equipment, whether or not electrically heated, for the treatment ...
3,042,000
3,541,000
11,168,000

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

10. ACTUAL EXPORTS IN 2018 (US$) POTENTIAL EXPORTS IN 2018 (US$)
Pakistan’s Theoretical Potential* for Additional Exports to Italy, 2018
Top 10 Potential Products (HS 06). Aggregate Theoretical Potential is $2.6 bn
HS CODE
DESCRIPTION
ACTUAL EXPORTS IN 2018 (US$)
POTENTIAL EXPORTS IN 2018 (US$)
170199
Cane or beet sugar and chemically pure sucrose, in solid form (excluding cane and beet sugar ... -
383,694,000
901890
Instruments and appliances used in medical, surgical or veterinary sciences, n.e.s.
7,276,000
373,174,724
620342
Men's or boys' trousers, bib and brace overalls, breeches and shorts, of cotton (excluding ...
31,345,000
348,957,655
100119
Durum wheat (excluding seed for sowing)
272,587,000
270900
Petroleum oils and oils obtained from bituminous minerals, crude
262,067,000
610910
T-shirts, singlets and other vests of cotton, knitted or crocheted
3,591,000
242,699,409
271019
Medium oils and preparations, of petroleum or bituminous minerals, not containing biodiesel, ...
235,930,000
420310
Articles of apparel, of leather or composition leather (excluding clothing accessories, footware ...
7,367,000
207,108,633
611595
Full-length or knee-length stockings, socks and other hosiery, incl. footwear without applied ...
1,278,000
200,384,722
610990
T-shirts, singlets and other vests of textile materials, knitted or crocheted (excluding cotton)
1,125,000
157,261,875
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 Italy’s imports,
ignoring competitiveness and tariffs

11. ACTUAL IMPORTS IN 2018 (US$)
Pakistan’s Theoretical Potential* for Additional Imports from Italy, 2018
Top 10 Potential Products (HS 06). Aggregate theoretical potential is $10 bn
HS CODE
ACTUAL IMPORTS IN 2018 (US$)
POTENTIAL IMPORTS IN
2018 (US$)
271012
Light oils and preparations, of petroleum or bituminous minerals which >= 90% by volume "incl. ... -
3,720,919,000
271019
Medium oils and preparations, of petroleum or bituminous minerals, not containing biodiesel, ...
8,186,000
3,107,432,000
851712
Telephones for cellular networks "mobile telephones" or for other wireless networks
6,000
833,068,000
390210
Polypropylene, in primary forms
39,000
539,099,000
870321
Motor cars and other motor vehicles principally designed for the transport of persons, incl. ...
528,982,000
300490
Medicaments consisting of mixed or unmixed products for therapeutic or prophylactic purposes, ...
42,918,000
389,878,000
854140
Photosensitive semiconductor devices, incl. photovoltaic cells whether or not assembled in ...
42,000
326,128,000
270900
Petroleum oils and oils obtained from bituminous minerals, crude
314,129,000
390120
Polyethylene with a specific gravity of >= 0,94, in primary forms
2,615,000
296,255,000
870322
45,000
291,835,000
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 Italy exporters, ignoring competitiveness and
tariffs