Pakistan International School, English Section
Unit-10
Trade
Date ……………………………
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Question. 5 (May / June 2024)
(b) (i) Study Fig. (opposite),
a pie chart showing the percentage of
Pakistan’s imports by continent.
Complete Fig. (opposite) using the
information in the table.
• Accurate completion of Asia/ Europe
dividing line at 74%
• Accurate completion of shading for Asia (vertical lines)
• Accurate completion of shading for Europe (horizontal lines)
Note: 1 mark max (for shading) if not plotted in the same order as the key 2 @ 1 mark
(ii) Suggest two reasons why countries in Asia account for such a large percentage of
Pakistan’s imports. [2]
• close by/proximity to Pakistan/neighbouring countries/shares a border
• possible to transport by road/rail
• cheaper transport costs
• sea trade by ship/through the Arabian Sea (e.g. to Iran)/access (to Asian) countries by
sea
• positive/friendly relations with nearby countries/many trading partners (in Asia)
• trading agreements/belong to the same trading blocs 2@
1 mark
(iii) Define the term ‘exports’ and name a main export for Pakistan. [2]
Definition: goods (or services) sold to other countries/outside of Pakistan
Main Exports: carpets/rugs/meat/cereals/flour/medical/pharmaceutical /optical equipment
/chemicals//rice//copper//salt/sulphur/stone/plaster/ lime/cement//cotton/ spices/clothing/
sports goods/edible oil(s)/sugar/fish/crustaceans/surgical goods/fruits/nuts/vegetables/
textiles/leather goods 2 @ 1 mark
(c) Explain two factors that may limit international trade for Pakistan.
You should develop your answer. [4]
• tariffs imposed on trade; these extra costs make imports more expensive/less attractive
• quotas applied to a product; which place a limit on the amount of value of imports
• government subsidies for their own products; which make imported goods more
expensive than local ones
• cost of transportation of goods; make it economically challenging to export goods/too
expensive for small traders to pay/adds costs to the goods
• restrictions/embargoes; due to labour/working conditions
• Pakistan is not a member of big trading blocs (like the EU); this limits the number of
countries Pakistan can trade with
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• quality/standardisation of goods; not meeting international standards means some
countries will not import/only a limited amount of value-added goods produced in
Pakistan
• currency exchange rates; exports from countries with higher value currencies are
expensive for Pakistan to purchase
• policy changes/political instability; deter trade agreements/led to uncertainty/countries
reluctant to trade/invest
Note: Max. 2 marks if no development. 2 @ 2 marks
Question. 4 (May / June 2023)
(a) (i) Study Fig. (below), a diagram
showing the intended destination for the
main products of
some of Pakistan’s major industries.
Complete Fig. (above) by using arrows to
match the type of industry with the
correct product and its main destination.
An example has been done for you. [3]
type of industry→product→destination
sports goods→footballs/cricket bats→
export market
iron and steel→metal rolls/bars/tubes/
wires/sheets→domestic market
surgical instruments→needles/scalpels
scissors→domestic and export market
3 @ 1 mark
(ii) State one city where each of the following industries takes place in Pakistan. [3]
sports goods - Sialkot
iron and steel - Faisalabad/Gujranwala/Islamabad/Jacobabad/Karachi/Lahore/Quetta/
Peshawar/Rawalpindi/Taxila
surgical instruments - Sialkot/Lahore 3 @ 1 mark
Question. 4 (October / November 2022)
(b) (i) Define ‘balance of trade’. [1]
The difference between the value of a country’s exports and the value of its imports.
value of exports – value of imports 1 @ 1 mark
(ii) Name one of Pakistan’s main trading partners, and give one example of goods imported
from it and one example of goods exported to it. [3]
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3 @ 1 mark
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(iii) Study Fig. (below), a bar graph showing the value of Pakistan’s imports from 2015 to 2020.
Using Fig. (above) only:
– What was the value of Pakistan’s imports in 2016? ..........46.......... US$ billions [1]
– How has the value of Pakistan’s imports changed since 2018? ............................................. [1]
decreased/gone down/falling/reduced 2 @ 1 mark
(iv) Describe the changes in the types and amounts of goods imported by Pakistan in recent
years. [4]
• imports of primary goods/raw materials have decreased
• imports of food/food products have decreased
• imports of consumer/value added goods have decreased
• imports of raw materials for consumer/value added goods/for manufacturing have increased
• imports of industrial machinery/equipment/high value goods/capital goods have increased
• imports of fuel oils/energy have fluctuated/increased
• imports of raw materials/luxury items/intermediate goods have (recently/2022) been
paused/restricted
• imports overall were paused/decreased during COVID-19 4 @ 1 mark
(c) Explain two factors which may promote trade with other countries.
You should develop your answer. [4]
• membership of World Trade Organisation (WTO); places Pakistan on world stage/ competes
with other countries
• establishing/extending trade agreements with trading blocs/ SAARC/EU/CPEC/ECO/ ASEAN;
allows expansion of markets for exports/imports/allows more foreign exchange
• removing trade barriers; international competition for local industries leads to improved
quality goods/efficiency
• competitive exchange rates; determines the cost of imports and exports/impacts on the
balance of payments
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• developing export processing zones (EPZ); attracts foreign investment/boosts
industrialisation/offers incentives, e.g. tax breaks for import
• establishment of the Export Promotion Bureau (replaced by)/Trade Development Authority of
Pakistan (TDAP); has an overview of the planning and development of different
sectors/marketing of Pakistan through conferences, etc.
• increased mechanisation; faster production times/can sell goods at lower prices
• manufacturing standardised products; meets international quality standards
• developing ports/airports/highways/transport infrastructure; can make more efficient/ faster
trading routes to other countries/can agree deals to allow (landlocked) countries to trade via
Pakistan
• training programmes/educated/skilled workforce; make higher quality products
• constant power supply to industry/no load shedding; products can be made efficiently/to
meet deadlines/more reliable production
Note: 1 mark for simple point and a further mark for the development of the point. 1 mark for
second simple point and a further mark for development of the second point.
Note: Max. 2 marks if no development. 2 @ 2 marks
Question. 4 (October / November 2021)
(a) (i) Study Fig. (below), a map showing the top five destinations of goods exported and
origins of goods imported by Pakistan in 2017.
Using Fig. (above) only, identify the
country: [3]
– to which Pakistan exports the highest
value of goods. …...USA……
– from which Pakistan imports the
highest value of goods ......China......
– which Pakistan both exports goods to
and imports goods from ............
China.........................
3 @ 1 mark
(ii) In 2017 Pakistan’s total exports
were valued at US $24.8 billion and its total imports at
US $55.6 billion. [2]
Calculate Pakistan’s trade balance in 2017.
Show your working in the box below.
24.8 – 55.6 = –30.8(billion US $)
Note: reserve one mark for working out. If correct answer but no working or
incorrect working = max 1 mark 2 @ 1 mark
(b) (i) What is the difference between GNP and GDP? [2]
• GNP is the production by nationals both within and outside Pakistan/ measures the output by
Pakistan nationals/companies wherever they are in the world.
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• GDP is domestic production from within a country regardless of who produced it/from
nationals or foreign companies/the value of everything that people in a country produce.
2 @ 1 mark
(ii) State two of Pakistan’s main exports and two of its main imports. [4]
exports: imports:
• miscellaneous textiles/worn clothing; • mineral fuels including
• cotton (yarn) (medium staple); coal/oil/petroleum/oil products;
• knit or crochet clothing/accessories; • machinery/electronics/electrical
• clothing/accessories (not knit or crochet); equipment;
• cereals/rice; • iron/steel;
• leather/animal gut articles; • chemicals/chemical products;
• copper; • vehicles/cars;
• sugar/sugar confectionery; • plastics/plastic articles;
• mineral fuels including oil; • animal/vegetable fats/oils/waxes;
• beverages/spirits/vinegar; • oil seeds;
• salt/sulphur/stone/cement; • cotton;
• fruit, nuts; • wheat:
• medical/surgical/optical/technical apparatus;
• sports goods;
• carpets and rugs;
2 @ 1 mark
(iii) Describe the changes in the types and value of goods imported and exported by Pakistan
in recent years. [4]
• fewer food products are imported;
• imports of fuel energy are decreasing;
• imports of high value/capital goods has increased (e.g. machinery to manufacture its
products);
• imports of consumer goods have decreased (e.g. computers, appliances, clothes);
• exports of low value/primary /agricultural products have decreased;
• exports of high value/manufactured/processed/industrial products have increased;
• exports of value added goods have increased;
Note: reserve 1 mark for exports and 1 mark for imports. 4 @ 1 mark
(c) Explain how trading blocs and currency exchange rates affect Pakistan’s trade.
You should develop your answer. [4]
trading blocs:
• members have a free trade agreement/there are low or zero trade restrictions; which
encourages trade between member states e.g. Pakistan is a member of SAARC/so more goods
can be exported to member countries by Pakistan;
• since 2014 Pakistan has had preferential access for its exports to EU markets; with low or zero
tariffs on most goods increasing trade;
• Pakistan is a member of ECO/ASEAN; but some trade barriers remain;
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• have trade barriers; which hinders trade between non-member states which affects Pakistan if
it does not belong to a particular trading bloc; Etc.
exchange rates:
• determine the cost of imports and the value of exports; therefore the increase or decrease of
the PK Rupee is significant to trade;
• determine the amount of overseas investment; companies/government/ people more likely
to invest in Pakistan if the exchange rate is favourable;
• currency depreciation means that imports are more expensive/exports have lower value; this
can reduce trade as Pakistan may not be able to afford to import as many goods/will earn less
from exports;
• currency appreciation means that imports are cheaper/exports have higher value; this can
increase trade as Pakistan can afford to import more goods/will earn more from exports/
however Pakistan’s exports may decrease as countries may shop around for
cheaper goods elsewhere. Etc.
Note: One mark for identification of appropriate idea and a further mark for development.
Note: Max. 2 marks if no development. 2 @ 2 marks
Question. 4&3 (October / November 2019)
(c) (i) Define the term ‘dry port’. [1]
• It is an inland terminal connected to a seaport by road or rail;
• Operates as a centre for the transhipment of sea cargo to inland destinations;
• An inland area or multimodal logistics centre connected to the sea. 1 @ 1 mark
(ii) Name two examples of dry ports that are currently in use. [2]
Any TWO from the list below;
Faisalabad/Gilgit/Hyderabad/Islamabad/Karachi(Kemari)/Lahore/Larkana/Multan/Murgha
Pura/Peshawar/Quetta/Rawalpindi/Sambrial(Sialkot) 2 @ 1 mark
(iii) Explain two advantages of using a dry port. You should develop your answer. [4]
• Can be used to relieve a major seaport of workload and congestion; named examples /
Karachi / Port Qasim (dev);
• Provides facilities; like container yards/warehouses/railway sidings / cargo-handling
equipment / administrative services / for export or import purposes / everything is in one
place (dev);
• Speeds up / saves time / more convenient for businesses; as they do not have to transport
their goods all the way to the sea port (dev);
• Efficient managerial staff; saves time and money/paperwork completed quickly / smooth
collection of revenue for government (dev);
• Refrigeration facilities provided; for perishable items, e.g. fruit and vegetables (dev);
• Employment opportunities provided / warehousing / customs (dev);
• Allows trade away from sea port / allows all regions to be productive / encourages foreign
trade in each region (dev);
• Saves money for exporters; makes more profit (dev); Etc.
Note: One mark for identification of appropriate idea and a further mark for development (in
parentheses).
Note: Max. 2 marks if no development. 2 @ 2 marks
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(c) (ii) Classify the following products into the correct category in the table below. You need to
decide if each product is mainly for the domestic market or the export market. [2]
Choose from:
Cement, cotton, fertilisers, sports goods, steel, surgical instruments
Domestic market: cement / steel / fertilisers
Export market: cotton / sports goods / surgical instruments 2 @ 1 mark
Question. 3 (October / November 2018)
(b) (i) Study Fig. (below), a world map.
Shade and label two countries that are major importers of products from Pakistan. [2]
Accurate shading and labels for 2 countries.
Afghanistan/Australia/Bangladesh/Belgium/Egypt/Canada/China(Hong Kong)/Denmark/
France/Germany/India/Japan/Kenya/Kuwait/Malaysia/Holland/Poland/Portugal/Russia/ South
Africa/ South Korea/Saudi Arabia/Spain/Sri Lanka/Switzerland/Sweden/Tanzania/
Turkey/Thailand/ United Arab Emirates/United Kingdom/United States of America/Yemen
2 @ 1 mark
(ii) Name three major products that are imported into Pakistan. [3]
Any THREE from the list below;
• Machinery / computers • Vegetable oils / edible oils / animal fats /
• Electrical appliances / electronics waxes
• Wheat • Coal
• Mineral oil / petroleum / crude oil • Vehicles
• Tea • Iron / steel / metals
• Oil seeds • Chemicals
• Vegetables • Plastics 3 @ 1 mark
(c) (i) Define the term ‘trade deficit’. [1]
Trade deficit is a negative balance of trade where the value of imports exceeds the value of the
exports. 1 @ 1 mark
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(iii) Explain why Pakistan has a trade deficit. You should develop your answer. [4]
• Value of imports is greater than exports (import of higher value goods compared with goods
for export which are lower value);
• Export a small variety of goods (e.g. cotton, rice, sports goods, leather goods, carpets and
rugs);
• Import food items (e.g. not completely self – sufficient in food);
• weather-related points, (e.g. bad storms, heavy rain etc. leading to failed harvests);
• Trade barriers / restrictions on exports (e.g. child labour, environmental and health
standards);
• Tough world market competitors / competition (e.g. Pakistan does not belong to major trade
organisations, lack of standardisation / quality)
• Limited range of specialist / niche products that other countries need or want (e.g.
standardisation / produce cheaper goods / have to import luxury items);
• Instability (deters foreign investment);
• Shortage of skilled / knowledgeable people to manage products; Etc.
Note: One mark for identification of
appropriate idea and a further mark for
development (in parentheses).
Note: Max. 2 marks if no development.
2 + 2 marks
(ii) Study Fig. (below), a bar graph showing
the exports and imports of Pakistan in
millions of rupees.
A. Calculate the trade deficit for 1979–
1980. [1]
Circle one correct answer below.
+23519 –90114 –23519 +46929
B. Identify how the trade deficit has
changed from 1979 to 2003. [1]
Circle one correct answer below.
increased stayed the same decreased
TRADE
[6] Marks Questions
Question. 5 (May / June 2024)
(d) Read the following two views about
trade & sustainable economic
development in Pakistan:
A. “Developing international trade relationships is the best way to promote sustainable
economic development in Pakistan.”
B. “Investment in industry and trade within Pakistan is the best way to promote its
sustainable economic development.”
Which view do you agree with more? Give reasons to support your answer and refer to
examples you have studied. You should consider view A and view B in your answer. [6]
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Levels marking - No valid response 0
Level 1 1–2
Simple point referring to one view (1) Simple points referring to any view (2)
Level 2 3–4
Developed point referring to one view only (3)
Developed points referring to both views or developed point and a relevant
example (4)
Level 3 5–6
Developed points referring to both views with evaluation or relevant
example (5)
Developed points referring to both views with evaluation and relevant
example (6)
Content guide
Developing international trade relationships is the best way to promote the sustainable
economic development of Pakistan:
international trade relationships allow increased options for exports/ access to preferential
rates for imports
increasing exports could reduce the negative balance of trade and increase the GDP of
Pakistan
establishing trade relationships with other countries can bring more foreign investment into
Pakistan
trade relationships/agreements bring financial security so government can invest in other
areas of the economy
Investment in industry and trade within Pakistan is the best way to promote its
sustainable economic development:
investment in energy production is needed as a reliable power supply benefits all areas of the
economy
Pakistan’s economy is agriculture-focused, ensuring enough food can be produced to support
a growing population will cut food imports and make the economy more sustainable
Pakistan is rich in mineral resources; these can be valuable export goods as they are in high
demand
support for domestic manufacturing to make local goods that meet international standards
cheaper will help reduce imports and encourage self-sufficiency
Question. 4 (October / November 2022)
(d) Evaluate the extent to which Pakistan can increase its trade with other countries. Give
reasons to support your judgement and refer to examples you have studied. You should
consider different points of view in your answer. [6]
Levels marking
No valid response 0
Level 1 1–2
Simple point referring to one view (1)
Simple points referring to any view (2)
Level 2 3–4
Developed point referring to one view only (3)
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Developed points referring to both views or developed point and a relevant example (4)
Level 3 5–6
Developed points referring to both views with evaluation or relevant example (5)
Developed points referring to both views with evaluation and relevant example (6)
Content guide
Pakistan can increase its trade with other countries because:
• Pakistan is already a member of some major trade blocs/named examples
• member of WTO/this aids trade
• already large investments from other countries such as China and UK/other named example
countries/projects
• by investing in/training/upskilling workers so quality of products meets international
standards
• Pakistan could offer further concessions/incentives to attract investors who manufacture
goods for export
It would be difficult to increase trade with other countries because:
• varying investment in different sectors/regions
• trained/skilled workers required
• trade barriers/import/export tariffs
• connectivity through transport networks requires further improvement, e.g.
rail/road/air/ports
• power supply reliability/load shedding restricts production
Question. 4 (October / November 2021)
(d) In 2017 Pakistan’s balance of trade was affected by a 0.2 per cent decrease in the value of
its exported goods and a 5.1 per cent increase in the value of imported goods.
Read the following two views:
A. “Pakistan could decrease the amount of cheap goods imported to improve the balance
of trade.”
B. “Pakistan could export goods to a wider number of countries to improve the balance of
trade.”
Which view do you agree with more? Give reasons to support your answer and refer to
examples you have studied. You should consider View A and View B in your answer. [6]
Levels marking No valid response 0
Level 1 1–2
Simple point referring to one view (1)
Simple points referring to any view (2)
Level 2 3–4
Developed point referring to one view (3)
Developed points referring to both views (4)
Level 3 5–6
Developed points referring to both views with evaluation or relevant example(5)
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Developed points referring to both views with evaluation and relevant example (6)
Content Guide
agree with View A:
• Pakistan could manufacture many of the products that it imports creating jobs;
• many of the goods imported are not needed but are imported due to an increase in
consumerism;
• Pakistan can educate people on the impact of consumerism on the environment;
• by focussing on local industry e can improve standards of goods can be improved e.g. by
working with PTEC (Pakistan Technical and Educational Council) for training. Etc.
disagree with View A:
• Pakistan does not have resources to manufacture goods that it imports;
• it would cost too much to make the products/cheaper to import them; it is costly to develop
infrastructure and to train and educate people;
• it may be difficult to support the domestic demand for products that are no longer imported.
• importing cheap goods does not affect the balance of trade significantly; Etc.
agree with View B:
• Pakistan currently only exports to five main countries;
• increasing the number of countries that Pakistan can export to will mean that Pakistan will
increase manufacturing /employment and earn more income;
• Pakistan will be less reliant on a few countries for trade; Etc.
disagree with View B:
• it may not be possible to make trade agreements with more countries;
• there is a lot of competition for trade;
• trade blocs e.g. EU or individual countries may place tariffs on imports reducing the impact on
the balance of trade;
• increasing exports is not the only/best way to improve the balance of trade; Etc.
Evaluation may argue: that both ideas are necessary for improving Pakistan’s balance of trade.
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