PAKISTAN-JAPAN

Trade

Prepared By

Dr. Kausar Ali Zaidi

Waqas Ahmed

PAKISTAN-JAPAN Trade

Introduction:
Japan is an industrialized country deficient in natural resources and raw materials which relies
heavily on its value added exports to pay for these imports. On the other hand, Pakistan stands
in the category of developing countries deficient in technology and endowed with natural
resources of fertile agricultural land and raw materials. The natural resource endowments and
economic backgrounds of both the countries make a very strong case to develop these
economies through international trade and investment.

History of relations
Japan is a good development partner of Pakistan and both countries have been cooperating
ever since the establishment of Pakistan in 1947 when Japan was under the Foreign
Occupation. Economic and Development relations were started and developed in early 1960s
when Japan was able to extend its first postwar yen credit to Pakistan. Strong trading ties were
developed between the two countries in the 1950s. In this period, Pakistan used to be much

stronger trading partner of Japan after the US. Japan started consuming Pakistani cotton and
jute in the mills of Osaka and become Pakistan's largest export partner in the 1950s.
Japan's shift to electronics from postwar textiles lowered down Pakistani exports to Japan in
the later period. Nevertheless, Pakistan learnt a great deal from Japanese textiles experience
especially its state of the art blending techniques. Pakistan imported massive textile machinery
from Japan
In 2000, Japan's textile industry consisted of 34,817 places of business (inclusive of all places of
business) that employed 229, 742 workers and delivered shipments worth 3.16 trillion yen.
The total Japanese textile products market has been declining because of the very slow
Japanese economy over the last few years. The Government of Japan (GOJ) has been taking
various economic stimulus measures such as an expanded tax incentive program for
homebuyers. These measures will help the Japanese housing market which should have a
positive influence on the Japanese textile products market, although the recovery may be slow.
The Japanese textile products market has a close correlation with Japan's new housing starts,
because consumers often purchase curtains, carpets and other textile products when they buy
or build a new home. Annual housing starts in Japan declined 15.6% in 1997 and 14.5% in 1998.
Monthly housing starts also declined continuously from January 1998 to February 1999.
However, in March 1999, they increased for the first time in 27 months and continued to
increase in April 1999. This indicates that the decline in Japans housing starts has stopped and
housing starts will begin to increase again. We estimate that housing starts will increase about
4% to about 1.25 million units in 1999 from 1.20 million units in 1998. The increase in housing
starts will stimulate the Japanese interior textile market and it should grow in 1999 although
the growth rate may be low in terms of the Japanese yen.
Because of the current difficult market conditions in Japan, the total imports of textile products
as well as the imports from the U.S. declined by 11% and 34% respectively in terms of Japanese
yen. Since the total market is estimated to grow, total imports and the imports from the U.S.
are also estimated to grow in 1999.

Current Trends
The business environment surrounding the textile industry is still in a difficult condition. Many
business indicators such as production, consumption and trade are much lower than the levels
before the Lehman Shock, and in addition to that, there also remain great concerns down the
road including the debt crisis in Europe. The circumstances in the textile industry still remain
difficult from the upstream to midstream and downstream industries. Particularly, the
circumstances of small and medium-sized businesses in production centers are seriously
difficult. On the other hand, the shift to trade liberalization, which will give new chances to
Japans textile industry such as the FTA between Japan, China and South Korea, RCEP, the TPP
and the Japan-EU EPA, has become full-fledged, and chances to grow together with Asian
countries and newly emerging countries and to further expand commercial distribution to the
global market are also increasing.

Japans textile industry now has to cooperate in an integrated manner and survive as a global
industry by playing a leading role in the reconstruction. For this purpose, while restructuring
the domestic industrial bases, Japans textile industry has to cope with advanced materials and
fashions as well as global environmental issues by capitalizing on its high technology and high
sensitivity, and strengthen its proactive efforts to strongly disseminate its values to the world as
the front runner of industries.

Textile industry has great missions to make full use of the identities of textile, which are being
recognized anew in the process of restoration and reconstruction from the earthquake
disasters, i.e., (1) the power to support the life, health and living of humans, (2) the power to
enrich sprits of people and improve culture with the strength of fashions and designs, and (3)
the power to create a future society with the power of materials, and to support new life styles
and social infrastructures with high-performance goods, high-sensitivity goods and advanced
materials.

For survival of Japanese textile industry with the overall supply chain as a total industry that
combines production with marketing, while further strengthening the trust-based mutual
relationships between its members in conformity with Creation and Reliability as its basic
guideline

In 2012 the total volume of trade between Japan and Pakistan was 2.1 billion US dollars.
Exports from Pakistan accounts to about 0.43 billion US dollars and imports from Japan were
1.69 US dollars. The trade gap stands at 1.26 billion US dollars, in favor of Japan. Now 76
Japanese companies are operating in Pakistan and 49 are operating in Karachi. The areas of
Japanese investment in Karachi are automobile and motorcycle industries, steel mills and
zippers.

Information about Economy of Japan:

Industries:
Among world's largest and technologically advanced producers of motor vehicles, electronic
equipment, machine tools, steel and nonferrous metals, ships, chemicals, textiles, processed
foods
Export commodities:
Transport equipment, motor vehicles, semiconductors, electrical machinery, chemicals.
Exports:
$773.9 billion (2012 est.)
Exports - commodities:
Motor vehicles 13.6%; semiconductors 6.2%; iron and steel products 5.5%; auto parts 4.6%;
plastic materials 3.5%; power generating machinery 3.5%
Exports - partners:
China 18%, US 17.7%, South Korea 7.7%, Thailand 5.5%, Hong Kong 5.1% (2012)
Imports:
$830.6 billion (2012 est.)

Country comparison to the world: 5

$794.4 billion (2011 est.)
Imports - commodities:
petroleum 15.5%; liquid natural gas 5.7%; clothing 3.9%; semiconductors 3.5%; coal 3.5%; audio
and visual apparatus 2.7% (2011 est.)
Imports - partners:
China 21.3%, US 8.8%, Australia 6.4%, Saudi Arabia 6.2%, UAE 5%, South Korea 4.6%, Qatar 4%
(2012)
(Source: World Fact Book)

Japan Perspective:

It is generally believed that foreign trade had played an important role in the economic
development of Japan. But this foreign trade led growth was not based on the notion of free
trade as envisaged by Adam Smith rather this growth was achieved under the umbrella of
protectionism.
Japan is a very big market with textile / garments / towels import more than $20 billion. The
thing required to do that Pakistan is needed to avail the valuable trade opportunity with Japan
as almost 85 percent garments required by Japan being imported from China.
As Pakistan is already exporting its major readymade garment to USA and members of
European Union, quality was not an issue with regards to enter the huge market in Tokyo. As
Pakistan is already perform as manufacturing unit for notable brands such as Levis, Hilfiger,
Nike, GAP, Tommy Hilfiger, Chaps, Russell and Ralph Lauren, Polo, Goodies, Van Heusen, Calvin
Klein and Eddie Bauer. The need is to enter the Japanese market in the Fashion industry along
with the Simple textile products because the trade trend of Pakistan with Japan is very
negligible in the Fashion industry. Only a consistent and sustained marketing and technological
support campaign from both Public and private sector is needed to enter into Japanese market.

Spinning and weaving of Japanese industry reached a turning point. In 2003, the volume of
chemical fiber in Japan produced 1.316 million tons, up 7.1 percent from the previous year. At
the same time, the output and production of cellulose fibers in 159,000 tons, 2.1 percent
decrease in year to year. Domestic production of synthetic fiber was reduced by three-quarters
of the production volume as its peak in 1997. The reasons that have led to a significant
reduction in the result is the increase in imports of low-cost products from China, and the
change is made by Japanese manufacturers to move production base of China abroad.

The textile industry faces a sharp increase in imports of textile products from by-products such
as clothing. While the proportion of secondary products imported textiles 75.8 percent in 1990,
rose to 89.4 percent in 1995, and participated in the growing.The largest supplier of textiles
imported from Japan is China, which leads the pack accounting for 64.3 percent of Japanese
textile imports.

Behind this rapid increase in imports of textile products is the fact that suburban secondary
retailers and casual clothing, and other manufacturers are used heavily it has established
production bases in China. Reasons why China was chosen as a production base for apparel
manufacturers are Japanese economic strength work, and strengthening local capacities, and
improve the productivity of state-owned mills, and the fact that most of the raw materials can
now buy locally in China. Wages, says that the twentieth century 1-1 of wages of workers in
Japan as well as care workers is a major point of attraction for Japanese companies.

In order to compensate for the stagnation of their equipment spinning, weaving and textile
mills of Japanese textile sector start converting their administrative remedies to non-textile
divisions which are showing high growth potential. In a major review of its operations, textile
manufacturers are promoting the reduction of unprofitable areas of textile and transfer of
production abroad, while also offering in manufacturing industries, such as access a specialty
store retail clothing label (SPA) private sphere. Stressing that are also found in the product R &

D of high added value, such as textiles, nanotechnology and business development with growth
rates in the non-textile areas such as automotive and health services.

The proposed mission for Increased Collaboration between Pakistan and Japan:

In the first phase the both countries can conduct exploratory mission to study the textile
markets, its trends, market access and opportunities.

In the Second Phase Pakistan can send teams for establishment and establishment of
joint ventures with Japanese companies for the promotion of Pakistani textiles products.

Furthermore Textiles industry of Pakistan can conduct commercial meetings with

Japanese powerhouses including Mitsui-Bussan Inter, Fashion Ltd, Sojitz Corporation,
Marubeni Corporation, Mitsubishi Corporation and visits to big chain stores in Japan,
UNQLO and ISETAN to expand the collaboration between two countries.

Need to develop the Linkages between fashion designing schools of Japan and Pakistan
with the industry of other country

Interactions between the buying houses and industry should be modified

Quality Improvement of the textile production specifically garment sector by value

addition and improved branding

Consistency of Trade Statistics: Exports of Japan - 52 Cotton (2011, in USD

thousands)
Rank

Leading
partners

Export
value
reported by
country

Number of Exports to
partner
the reporting
countries
partners

734,795

79

Measure of
discrepancy from detail
(0-100 %)

Scoring of
discrepancy
Exports

5.7

Very Low

423,790

423,790

426,634

0.0

Very Low

64,995

64,995

69,259

3.0

Very Low

45,905

45,905

50,740

5.0

Very Low

4 Malaysia

30,738

30,738

49,131

23.0

Average

5 Thailand

18,684

18,684

22,646

10.0

Low

Source: ITC

63

Mirror
estimates
- Number
of
partners

782,547

Hong Kong ,
SAR China

13.2

Mirror
estimates Value

1 China

679,256

Number of
reporting
partners

0 World

United States
2
of America

79

Non
reported
exports as
%

Exports of Japans textile to the world and leading export partners have been shown in the
above delineation. The total export value of Japan textile to the world as reported by the
country in 2011 is 782,547(USD thousands). Japans export value of textile to the leading
partner China is around 423,790(USD thousands). Its export value of textile to USA as reported
by the country is around 64,995(USD thousand). Japans export value of textile to Hong Kong,
SAR China is around 45,905(USD thousands). Similarly with Malaysia Japan is exporting textile
to the value of 30,738(USD thousands). With Thailand as reported by the country Japan is
exporting textile to the value of 18,684 (USD thousands).

Consistency of Trade Statistics: Imports of Japan - 52 Cotton (2011, in USD

thousands)
Rank

Leading
partners

Import value
reported by
country

Number of
partner
countries

58

Imports from
the reporting
partners

1,137,381

Number
of
reporting
partners

51

Non
reported
imports as
%

Mirror
estimates Value

0.6 1,136,153

Mirror
estimates Number of
partners

48

Measure of
discrepancy from detail
(0-100 %)

Scoring of
discrepancy
Imports

0 World

1,144,065

5.5

Very Low

1 China

280,470

280,470

310,158

5.0

Very Low

2 Indonesia

189,000

189,000

185,508

1.0

Very Low

United
3 States of
America

143,292

143,292

135,705

3.0

Very Low

4 Pakistan

114,658

114,658

110,586

2.0

Very Low

5 India

109,943

109,943

94,126

8.0

Very Low

Source: ITC

Japans import of textile from the world and its leading trade partner has been shown in the
above table. The total import value of Japan textile from the world as reported by the country
in 2011 is 1,144,065(USD thousands). Japans import value of textile from the leading partner
China is around 280,470 (USD thousands). Its import value of textile from Indonesia as reported
by the country is around 189,000 (USD thousand). Japans import value of textile from USA is
around 143,292 (USD thousands). Similarly with Pakistan Japan is importing textile to the value
of 114,658 (USD thousands). With India as reported by the country Japan is importing textile to
the value of 109,943 (USD thousands).

Problems

Pakistani textile exports to Japan suffer due to absence of any bilateral trade agreement
between the two nations.

The stiff competition put up by the competitors in the global markets dented the
Pakistani textile sector, which became uncompetitive in its traditional markets due to
high tariff slabs on Pakistans textile good

Trade Indexes of Textile Sector

JAPAN:

Trade Performance Index (by Sector): Japan (2011)

Indicator's Description

General Profile

Position in 2011
for Current Index

Textiles
(Value)

Textiles
(Rank)

Number of exporting countries for the ranking in the sector

133

G1

Value of exports (in thousand US$)

G2

Export growth in value, p.a. (%)

3%

G3

Share in national exports (%)

0%

G4

Share in national imports (%)

G5

Relative trade balance (%)

G6

Relative unit value (world average = 1)

P1

Net exports (in thousand US$)

P2

Per capita exports US$/inhabitant)

P3

Share in world market (%)

8,035,333

1%
-6%
3.0
-1,160,088

112

62.8

38

2.80%

10

49

14

P4a Product diversification (N of equivalent products)

P4b Product concentration (Spread)

14

P5a Market diversification (N of equivalent markets)

P5b Market concentration (Spread)

C1

Relative change of world market share p.a (%)

C1a Competitiveness effect, p.a. (%)

Change 2007 2011 for Change
Index

Indicators
included in chart

62

77
74

-1.5900%
-1.0000%

55

1.5800%

46

C1c Initial product specialisation, p.a. (%)

-1.0000%

94

C1d Adaptation effect, p.a. (%)

-1.1800%

85

C1b Initial geographic specialisation, p.a. (%)

C2

Matching with dynamics of world demand

Absolute change of world market share (% points p.a)

Average Index: Current Index

Average Index: Change Index

38
-0.0485%

122
36
35

Source: ITC

PAKISTAN:

Trade Performance Index (by Sector): Pakistan (2011)

Indicator's Description

General Profile

Number of exporting countries for the ranking in the sector

G1

Value of exports (in thousand US$)

G2

Export growth in value, p.a. (%)

G3

Share in national exports (%)

Textiles
(Value)

Textiles
(Rank)

133
9,082,032
5%
35%

47

Indicator's Description

Position in 2011
for Current Index

G4

Share in national imports (%)

G5

Relative trade balance (%)

G6

Relative unit value (world average = 1)

P1

Net exports (in thousand US$)

P2

Per capita exports US$/inhabitant)

P3

Share in world market (%)

P4a Product diversification (N of equivalent products)

Textiles
(Value)

Textiles
(Rank)

2%
75%
1.4
7,837,088

51.8

42

3.17%

25

37

P4b Product concentration (Spread)

P5a Market diversification (N of equivalent markets)

37
15

P5b Market concentration (Spread)

C1

Change 2007 2011 for Change

Index

Relative change of world market share p.a (%)

16
0.0600%

C1a Competitiveness effect, p.a. (%)

-0.6200%

51

C1b Initial geographic specialisation, p.a. (%)

-0.3400%

74

2.3800%

26

C1c Initial product specialisation, p.a. (%)

C1d Adaptation effect, p.a. (%)

Indicators
included in chart

16

C2

Matching with dynamics of world demand

Absolute change of world market share (% points p.a)

Average Index: Current Index

Average Index: Change Index

-1.3700%

90
128

0.0020%

23
13
126

Source: ITC

Recommendations

Pakistan has great opportunities and has the market potential for exporting cotton and
cotton manufacturing, but it faces greater competitions and tough time with other
cotton producing countries due the termination of MFA

The demand for textile products is growing, and if we are not able to fulfill our current
orders, we will lose international buyers. Uninterrupted supply of energy resources like
electricity and Gas is urgent need of time to give back the Pakistan its lost market share
because Pakistan has easy availability of resources, enough skilled labor, great potential
and capability for more textile production.

Monthly loss the textile industry because of interruptions in gas supply could reach
about U.S. $ 1 billion, or 4 $ 5 billion for the fiscal year ending June 20 next year

Cost efficiency: Low cost of production is the first step for competitiveness. To obtain
the higher market share greater margin and gaining from competition the cost of

production must below. Pakistan has the advantage in the production of cotton due to
its labor intensive agriculture sector where cheap labor is the easily available.

Low cost production technology especially plant protectionmeasures should be

economical.

To achieve the higher productivity with improved quality of cotton the adoption of new
and hybrid cotton seeds and harvesting techniques will enhance cotton productivity and
consequently it will increase exports.

Effective, stringent, and transparent enforcement of quarantine measures must be

taken for the import of exotic plant materials.

The uncontrolled import of genetically engineered varieties might irreversibly damage

cotton crop

There is a need to develop awareness among the farmers regarding the appropriate
management practices for fully utilizing the new and available seeds, fertilizers and
other techniques.

Diversification in the Pakistan total exports of general other products; cotton and
cottonmanufacturing export are concentrated on few region/countries. There is urgent
need of diversification in this regard

Government need to adopt and implement export oriented policies with more focus on
value chain rather than raw material exports.

There is need to with draw any subsidy available because the infant industry argument
is no more valid for textile industry. To make this industry more competitive
government should gradually withdraw subsidy.

The exporters should be facilitated with easy non-trade barriers, uninterrupted

transportation and cargo facilities, proper assistance and user friendly regulatory
measures and removal unnecessary formalities so that exporters can easily operate
their business operations.

There should be prominent agricultural scientists who can advocate for better market
ties and mechanism available in Pakistan through different means.

Government should annually organize cotton based products fair and exhibitions.

Proper arrangements for delegates of foreign countries to visit Pakistani textile

industries in Karachi, Faisalabad, Multan and Lahore and should arrange visits of
Pakistani exporters to their working trading partner countries.

Indigenous trade initiatives and technologies can lead to creation of a trade regime in
textile and apparel sector that can lead to better performance of textile industry.

Cotton,Textile and Apparel sector has contributed in scaling Pakistan from a low income
country to a middle income country and with the increase in trade with Japan it can high
and high with the increased share and potential for the textile industry.

Japan's Overall Imports

The Japanese over all imports for the past 10 years have hovered somewhere between 3.4
billion and 8.8 billion US Dollars.
Figure shows that from 2001 to 2008 it has been growing with increasing trend, in2009 due to
global recession Japanese Imports shows declining trend and unless general economy recovers,
there would be no room for further expansion of consumption, which leads to increase in
imports and after that in 2010 it again gears up an increasing trend.
As imports have increased sharply, the mill consumption has continued on the substantial
decrease. Because of high levels of imports, the Japanese textiles and apparel industry has
suffered a significant decrease in output as well as in workforce. The existence of the domestic
production base has been threatened by growing imports.

Japan's Imports from

world
All products
2001
349300362
2002
337608873
2003
383451985
2004
455253850
2005
515866388
2006
579063945

622243336
762533921
551984751
692620567
855380474
885843335

Japan's Total Imports from World

Import Values

2007
2008
2009
2010
2011
2012

1E+09
900000000
800000000
700000000
600000000
500000000
400000000
300000000
200000000
100000000
0

Year

The above delineation exhibits the total imports of Japan from all over the world from 2001 2012. Japan total imports from the world witnessed a steady growth from 2001-2008 then it
witness a decline from 2008-2009. From 2009-2012 it experienced a nominal and steady
increase.

Japan's Total imports from Pakistan

The below delineation show Japans total imports from Pakistan for the year 2001 -2012.
Looking at the delineations one can easily comprehend that Japans import from Pakistan has
remained inconsistent. From 2001-2007 imports from Pakistan remained inconsistent with few
nominal increases and decreases. In 2008 imports from Pakistan increased by quite an
exponential margin. It again witnessed a significant slump in 2009 and then increased
exponentially in 2010 and 2011. Imports have declined in 2012 from 2011 by a nominal margin
Japan's Total imports from
Pakistan
All products
2001

220931

151681

2003

134729

2004

170530

2005

142180

2006

208705

2007

246588

2008

436677

2009

236203

2010

348259

2011

459179

2012

427146

Japan's Total Import From Pakistan

Import's Value

2002

500000
450000
400000
350000
300000
250000
200000
150000
100000
50000
0

Year

Japan's Overall Textile imports

The Below delineation show Japans total textile imports from the world for 2002-2012. Textile
products that Japan imported from the world have been divided into three categories. Cotton,
Cotton not carded or combed, Cotton carded or combed. Japans cotton import from the world
has remained inconsistent with very nominal increases and decreases from 2001-2012. The
highest imports figures being in 2001 and the lower ones are in 2010 and 2012. The graph
clearly shows that Japans total import of cotton has been in a decline.

Similar is the case with Cotton not carded or combed category of imports. This category also
remained inconsistent with few nominal increases and decreases in the interim years. i.e. from
2001-2012. The highest figures reported in the imports of this category were in 2001 and the
lowest one is in 2012. So it shows clearly that Japans import in this category is witnessing a
certain decline.
Imports of the cotton carded and combed category of Japan from year 2001-2012 has remained
inconsistent. This category experienced a nominal increase in percentage of imports from 20012004. It saw a decline in 2005 and from then onwards to 2009 this category experienced a
steady growth. From 2010-2012 the trend has been inconsistent with nominal increases and
decreases in the interim years.
Japan's Textile imports from world

Year

Cotton

Cotton,
not carded or
combed

Cotton,
carded or
combed

350000
300000

2001

330299

328839

1460

2002

254127

251282

2845

2003

271053

268157

2896

2004

281093

277207

3886

200000

2005

227021

224470

2551

150000

2006

200265

196911

3354

2007

204063

199968

4095

2008

218492

211954

6538

2009

108359

101830

6529

2010

150326

144362

5964

2011

297004

288265

8739

2012

157012

150459

6553

250000

100000
50000
0
2001200220032004200520062007200820092010

Japan's Textile imports from Pakistan

Japan's Textile imports from Pakistan

Japan's Textile imports from Pakistan

Cotton, not
Cotton,
carded or
carded or
Year Cotton
combed
combed
2001

222

222

2002

2003

137

137

2004

21

21

2005

2006

2007

2008

2009

28

28

2010

2011

2012

250
200
150
100
50
0

The above delineation exhibits total Japans total textile imports from Pakistan for the year
2001-2012.three categories of textile imports have been defined in the table. i.e. Cotton,
Cotton not carded or combed, cotton carded or combed. Cotton imports from Pakistan for the
year 2001 was 222. But in 2002 Japan didnt imported cotton from Pakistan. In 2003 and 2004
Japan imported cotton from Pakistan then from 2005-2008 they didnt imported cotton from
Pakistan. In 2009 Japan imported cotton and then onwards to 2012 Japan hasnt imported
cotton from Pakistan .similar is the case with the other two categories of imports which are
cotton not carded or combed and cotton carted or combed. The delineation clearly shows that
the matter of Japans import of textile products from Pakistan is not of any exponential growth
or decline but of totally untapped market in the long years from 2001-2011.

Japan's Overall exports to world

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

900000000
800000000
700000000
600000000
500000000
400000000
300000000
200000000
100000000
0
2002

Year
All products
2001
501225
2002
716510
2003
903239
2004
1239284
2005
1512145
2006
1759476
2007
1559186
2008
1456281
2009
1014819
2010
1317119
2011
1698634
2012
1691271

Japan's Overall exports to

world

2001

Japan's exports to
Pakistan

The above delineation shows Japans total export to the world. As a growing economy Japan
has witnessed an exponential growth in their export to the world from 2001-2012 with few
nominal declines in between. Japan has achieved the production efficiency through advanced
technology, innovations and new techniques of production with installments of new capital and
factor specialization techniques which lead to increase in Overall production of Japans
economy in almost every sector of economy. It has highly developed industrial sector and
protected small agricultural sector along with efficient services sector, and these all sector are
performing with efficiency and yielding the maximum output.

Japan's Top 10 exports to world

Year

Vehicles
other than
railway,
tramway

Machinery,
nuclear
reactors,
boilers, etc

Iron and
steel

Japan's Top 10 exports to world

Optical,
photo,
Plastics
Electrical,
technical,
and
Articles of
electronic
medical, etc
articles
iron or
equipment
apparatus
thereof
steel

Rubber
and
articles
thereof

Organic
chemicals

Manmade
staple
fibres

Commodities
not
elsewhere
specified

2001

81838913

83447846

11165743

90398248

27698186

9344894

5711283

5449821

10818956

1358919

16099800

2002

94000188

84235057

13165757

89790379

23093495

10483390

5823909

5980551

11501637

1304192

17029966

2003

104237935

94669021

15762128

104240256

27575459

12198535

6242831

6895016

13495032

1330340

19245155

2004

117956516

115508695

21202596

123066330

36405422

15387228

7683273

7874811

16487834

1376517

23643711

2005

125125825

119492626

24366283

122272074

35915997

17442243

9411485

8574631

17853006

1406716

26158185

2006

141692243

125937162

25960476

128037362

35448421

19637301

11033798

9239573

18585801

1446002

30288111

2007

160286459

139370157

30148181

134991385

32632215

22047871

12097593

10463801

20792577

1625582

35597167

2008

172203050

151143767

39199765

138579773

34317337

23851994

13727355

11715611

20308474

1615569

36873328

2009

102611440

102014175

28401604

107398782

28638238

21716206

10547250

9679898

18909162

1437513

34258520

2010

146741816

149988366

38876138

131405746

39616670

29269801

12278443

12839980

22134976

1756837

40036684

2011

148057286

171275654

42164020

129538857

45564628

30381895

14234641

14958255

24658484

2064239

39383472

2012

162829579

158870832

39473911

125918110

45644401

28528586

15492322

14878861

23404749

2009762

35510192

200000000
180000000

Vehicles other than railway,

tramway

160000000

Machinery, nuclear reactors,

boilers, etc

140000000

Iron and steel

120000000

Electrical, electronic equipment

100000000
80000000

Optical, photo, technical,

medical, etc apparatus
Plastics and articles thereof

60000000
Articles of iron or steel
40000000
Rubber and articles thereof
20000000
Organic chemicals
0

The above delineation shows Japans top 10 export to the world. The list includes Vehicles
other than railway, tramway, Machinery, nuclear reactors, boilers, etc, Iron and steel, Electrical,
electronic equipment, Optical, photo, technical, medical, etc apparatus, Plastics and articles
thereof, Articles of iron or steel, Organic chemicals, Manmade staple fibers, Commodities not
elsewhere specified. All of the categories of exports have experienced exponential growth from
2001-2012. The list of top 10 exports nomenclature and their exponential growth clearly shows

Japan's exports to Pakistan

Japan's exports to
Pakistan
Year
All products
2001
501225
2002
716510
2003
903239
2004
1239284
2005
1512145
2006
1759476
2007
1559186
2008
1456281
2009
1014819
2010
1317119
2011
1698634
2012
1691271

All products
2000000
1800000
1600000
1400000
1200000
1000000
800000
600000
400000
200000
0

The above graph shows Japans total export to Pakistan from 2001-2012. Japans total export to
Pakistan has increased exponentially from 2001-2012 with only a nominal decline from the
interim year that was experienced in 2009.

Japan's Top 10 exports to Pakistan

Japan's Top 10 exports to Pakistan

2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001
2001

Vehicles
other
than
railway,
tramway
159711
255800
344115
466640
607597
741853
640312
504091
355240
483043
725332
774255

Machine
ry,
nuclear
reactors, Iron
boilers,
and
etc
steel
133192
31789
193883
44504
278584
37390
410325
50924
454605
66251
479255
86526
419013
84161
389893
98215
275035
76937
342473 106878
377452 182085
316394 185546

Electrical,
electronic
equipmen
t
42579
48180
55730
94969
122715
126662
126490
152619
67615
88587
102769
108285

Optical,
photo,
technical,
medical, etc
apparatus
14532
14064
24740
36356
46281
41899
45588
49394
44217
46744
44726
49635

Plastics
and
articles
thereof
9510
12005
13937
16283
21558
21254
21354
23480
21975
23112
38432
40481

Articles
of iron
or
steel
8132
28082
17530
23933
28531
75211
34040
61884
32958
40170
42927
37039

Rubber
and
articles
thereof
14296
17221
19676
21935
27237
28612
28592
35058
28086
31132
33992
32146

Organi
c
chemi
cals
19731
27327
29802
20247
21049
24356
25769
25166
21226
28571
20589
21510

Manma
de
staple
fibres
8099
7437
9045
10218
13179
15876
12597
6199
7626
11309
12194
15617

Japan's Top 10 exports to Pakistan

900000
800000

Vehicles other than railway,

tramway

700000

Machinery, nuclear reactors,

boilers, etc

600000

Iron and steel

500000

Electrical, electronic equipment

400000
Optical, photo, technical,
medical, etc apparatus

300000

Plastics and articles thereof

200000

Articles of iron or steel

100000
0
200120012001200120012001200120012001200120012001

Rubber and articles thereof

The above outlining shows Japans top 10 export to the Pakistan from 2001-2012. The list
includes Vehicles other than railway, tramway, Machinery, nuclear reactors, boilers, etc, Iron
and steel, Electrical, electronic equipment, Optical, photo, technical, medical, etc apparatus,
Plastics and articles thereof, Articles of iron or steel, Organic chemicals, Manmade staple fibers,
Commodities not elsewhere specified. All of the categories of exports have experienced
exponential growth from 2001-2012. The list of top 10 exports nomenclature and their
exponential growth clearly shows that all the major exports to Pakistan from Japan includes
industrial raw materials and machinerys spare parts.

Japan Trade balance with Pakistan

Japan Trade balance with Pakistan
Imports
2001

220931

2002

151681

2003

134729

2004

170530

2005

142180

2006

208705

2007

246588

2008

436677

2009

236203

2010

348259

2011

459179

2012

427146

Exports
Trade Balance
501225
716510
903239
1239284
1512145
1759476
1559186
1456281
1014819
1317119
1698634
1691271

280294
564829
768510
1068754
1369965
1550771
1312598
1019604
778616
968860
1239455
1264125

2000000
1800000
1600000
1400000
1200000
Imports

1000000

Exports

800000

Trade Balance

600000
400000
200000
2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

The above demarcation exhibits Japans trade balance with Pakistan for year 2001-2012. For all
the interim years Japan trade balance has remained positive with Pakistan which shows that
Japan is exporting more in terms of value to Pakistan and importing products that arent that
much value added. Similarly if this trend is analyzed from Pakistans perspective then Pakistan
is witnessing a negative trade balance with Japan for the year 2001-2012.
Bilateral trade recorded US$ 2.2 billion in 2011, largely tilting the balance of trade in Japan's
favor with US$ 1.8 billion imports from that country. Trade-wise, Japanese position has been
taken over by China in Pakistan's trade. Pakistan-China trade has been five times now bigger
than Pakistan-Japan trade.