Swiss Review


Pakistan's trade relations with Switzerland remain strong
by Prof. Dr. Noor Ahmed Memon, Dadabhoy Institute of Higher Education / Associate Editor,
Pakistan Textile Journal.

Switzerland's highly developed economy is large because of its technologically progressive industrial sector, which is differentiated by highly specialized, internationally experienced, and flexible small and medium-sized companies.

Switzerland and Pakistan have good, long-standing relations. The two countries have signed a range of economic agreements that have helped to develop bilateral trade. There are numerous bilateral agreements between Switzerland and Pakistan covering a range of areas including investment protection, debt consolidation, aviation, double taxation and disaster relief. Switzerland also engages in regular political dialogue with Pakistan.

The Swiss Business Council had also been set up for providing guidance to Pakistani businessmen to enhance trade volume between the two counties.

Over the years this level of cooperation has increased significantly which is the reason why Switzerland has been among the top five largest investors.

The Swiss multinational companies that operate in Pakistan, do not just market their world class products and services, but also create employment opportunities in the country. There are 21 Swiss companies in Pakistan employing 15,000 people. Major Swiss companies that have invested in Pakistan include ABB, Archroma, Clariant, Sika, Gate Gourmet, Nestle and Novartis.

Pak-Swiss Trade

Pakistan's trade relations with Switzerland have been quite happy. The trade between Pakistan and Switzerland increased, but exports remained less than the imports. Over the past five years, trade between Pakistan and Switzerland has increased, but the rise in imports has been greater than the exports. The total trade volume between Pakistan and Switzerland in 2018-19 was over US$ 1.02 billion with the balance of trade favouring Switzerland.

In 2018-19, Swiss exports to Pakistan amounted to US$ 922 million and consisted mainly of machinery, chemical and pharmaceutical products and watches. Swiss imports from Pakistan mainly textiles and agricultural products amounted to US$ 95 million. Pak- Swiss Trade for the last five years are given in Table-1.

Table 1: Pak Swiss Trade
Value: US$ Million

Year

Pakistani exports to Switzerland

 Swiss imports into Pakistan

Balance of Trade

2014-15

94 648 -554

2015-16

65 736 -671

2016-17

57 850 -793
2017-18 128 1,084 -956
2018-19 95 922 -827

    Source: State Bank of Pakistan.

Import of textile machinery from Switzerland to Pakistan increased from CHF 26.8 million in 2018 to CHF 38.5 million in 2019, thus showing an increase of 44%. Imports of textile machinery (Major items) from Switzerland to Pakistan in terms of rupees are given in Table 2.

Table 2: Imports of Textile Machinery from Switzerland’s to Pakistan
                                                                         Value : Rs Million

Machinery

2018-19

2017-18

Quantity Value Quantity Value
 Carding Machinery (Nos) 112 1,214 62 645
 Drawing / Roving Machines (Nos) 16 121 33 119
 Blow Room Machinery (Nos) 47 104 50 368
 Preparation of Textile Fibres (Nos) 9 122 11 3
 Textile Spinning Machines (Nos) 3 38 33 723
 Textile Fibre Machines (Nos) 26 204 45 812
 Weaving Machines (Looms) (Nos) 188 393 238 305
 Muti-Head Embroidery (Nos) 8 25 37 61
 Circular Knitting Machines (Nos) 74 257 38 43
 Auxiliary Machines (Nos) 85 114 135 215
 Top and Flat Card Clothing (000 kg) 17 91 31 144
 Card Clothing (000 Kg) 19 105 19 85
 Spinning Rings (000 Kg) 9 40 21 81
 Parts of Wearing Machiners (000 kg) 31 60 17 72

 Source: Pakistan Bureau of Statistics.

References

  • Pakistan Bureau of Statistics.
  • Swissmem.
  • State Bank of Pakistan-Annual Reports.

 

 
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