In commercial and trade sector, Pakistan and Saudi Arabia maintain good relations which are improving with the passage of time. Saudi Arabia is among the top 10 major export destination of Pakistan. Pak-Saudi annual bilateral trade is about $6.0 billion. Major items of exports from Pakistan to Saudi Arabia includes, raw cotton, cotton yarn, cotton cloth, readymade garments, knitwear (hosiery), made-ups, bed linen, towels, tents and canvas, art silk and synthetic textiles, leather garments, furniture, carpets and rugs, footwear, sports goods and surgical goods, rice, fish, fruits, vegetables, spices, biscuits, jams, juices etc.
Pakistan imports major requirements of petroleum products from Saudi Arabia. Other items of import from Saudi Arabia, though minor in volume, includes petrochemicals, organic chemicals, plastic and plastic products, fertilizers, steel products, electrical equipment and materials, raw skins, tanned leather, boilers and heavy equipment, copper and copper products, aluminum and aluminum products, chemicals (in-organic), components, precious metals, steel castings, rubber and rubber products, paper, hardboard etc. Pakistani exports have seen a robust growth during the last two years and is expected to reach $500 million in 2009-10.
This progress is due to aggressive export promotion efforts, carried out by the commercial sector in collaboration with Pakistani private sector. Visits of trade delegations organized by TDAP and Chambers helped in improving Pakistan’s position and share in the market. As a result, not only the declining trend in the Pakistani exports has been checked but is showing a marked increasing trend. Last year a 20 percent increase in exports has been achieved compared to 2007-2008. The growth is likely to surpass this figure in 2009–2010. In spite of this visible growth in exports from Pakistan, there exists a large trade imbalance. The major cause of overwhelming imbalance is due to bulk import of petroleum products from Saudi Arabia.
