ABSTRACT
The transition from the Ayub government to that of President Z. A. Bhutto had profound effects on Pakistan’s foreign trade. In the broadest terms Pakistan’s exports divide into three categories: agricultural exports; manufactured exports from the large-scale cotton textile mills; and, manufactured exports from the small-scale sector. Pakistan’s four major exports are rice, raw cotton, cotton yarn, and cotton cloth, and they have typically comprised 50 percent or more of total exports. Rice exports have risen strongly as this primary product has entered the ranks of major exports. Pakistan’s exports rose by 38 percent between 1978/79 and 1979/80. In the previous year growth had been just under 30 percent, and vigorous growth continued in 1980/81. During the 1960s there was a substantial reduction in the share of industrial countries from 49 percent in 1960 to 43 percent in 1970. Relative price competitiveness is affected by the cost of production in different countries.
