Notes Class 10th SLO 6 (29/12/24)

6.2.4 discuss the effect of changing trends in exports and imports on Pakistan’s balance of trade and economy
(for the last two decades only);
To discuss the effect of changing trends in exports and imports on Pakistan’s balance of trade and economy over
the last two decades as described, we need to analyze key points related to trade dynamics, the composition of
exports and imports, and their impact on the economy.
1. Exports Trends
- Pakistan's exports have remained heavily reliant on traditional sectors, such as textiles and agriculture (e.g.,
cotton, rice, and leather products). However, diversification into high-value products and services has been slow.
- Fluctuations in global demand, competition from regional countries, and inadequate modernization of
industries have limited export growth.
- The slow rise of non-traditional exports, including IT services, has contributed to some improvement, but the
pace is insufficient to significantly alter the export-to-GDP ratio.
2. Imports Trends
- Imports have grown significantly due to increasing demand for industrial machinery, energy (oil and gas),
consumer goods, and food products.
- The rise in oil prices during certain periods exacerbated the import bill, creating further imbalances.
- Dependence on imported capital goods and raw materials for production indicates the limited capability of
domestic industries to support local demand.
3. Balance of Trade
- A persistent trade deficit has been a major concern. Export earnings have consistently fallen short of covering
the import bill.
- The widening gap has led to increased reliance on external borrowing, putting pressure on foreign exchange
reserves.
- Efforts to reduce the trade deficit through export incentives and import restrictions have had mixed results.
4. Economic Impact
- The trade imbalance has contributed to a current account deficit, leading to currency depreciation and
inflationary pressures.
- Limited export growth has constrained Pakistan's ability to generate foreign exchange, affecting debt
repayment capacity and economic stability.
- Dependence on imports for essential commodities has made the economy vulnerable to external shocks,
such as global price fluctuations.
- The government’s focus on reducing energy imports through renewable energy projects and promoting local
industries is a positive step but remains a long-term challenge.
These trends highlight the need for a strategic shift in trade policies, such as enhancing industrial output,
reducing dependency on imports, and focusing on export diversification to achieve sustainable economic
growth.
6.3 Transport and Communication
6.3.1 describe the modes of transport used in Pakistan i.e. land, air and water;
The modes of transport in Pakistan are categorized into land, air, and water. Each mode is discussed with respect
to its significance, infrastructure, and role in the country's economic and social development. Below is a
summary:
1. Land Transport
Land transport forms the backbone of Pakistan's transportation system and includes roadways and railways.
Roadways:
- Highways: The road network includes major highways such as the Grand Trunk Road and motorways like the
M-1 (Islamabad-Peshawar) and M-2 (Lahore-Islamabad).
- Rural Roads: A significant portion of the population relies on rural and secondary roads for connectivity.
- Public Transport: Buses, wagons, and rickshaws are common for intra-city and inter-city travel.
- Challenges: Overcrowding, insufficient road maintenance, and traffic congestion are prevalent issues.
Railways:
- Pakistan Railways: A critical mode of land transport, offering passenger and freight services.
- Infrastructure: The railway network connects major cities and industrial hubs but has been facing challenges
like outdated infrastructure and financial constraints.
- Role: Railways are vital for transporting bulk goods such as coal, cement, and agricultural products.
2. Air Transport
-National and Regional Airlines: Pakistan International Airlines (PIA) is the national carrier, while other private
airlines like Airblue and Serene Air operate domestic and international routes.
-Airports: Major airports include Jinnah International Airport (Karachi), Allama Iqbal International Airport
(Lahore), and Islamabad International Airport.
- Connectivity: Air transport is essential for connecting remote and mountainous regions, especially in Gilgit-
Baltistan.
-Challenges: High operational costs and limited regional connectivity hinder the growth of air transport.
3. Water Transport
- Inland Waterways: Despite having a significant network of rivers, inland water transport is underutilized. The
Indus River and its tributaries have potential for economic transport, but infrastructure is lacking.
- Seaports: Major seaports include Karachi Port and Port Qasim, while Gwadar Port has been developed as part
of the China-Pakistan Economic Corridor (CPEC).
- Role: Ports handle a majority of Pakistan’s trade, making water transport crucial for imports and exports.
- Challenges: Siltation, outdated facilities, and reliance on other modes of transport limit the potential of water
transport.
Each mode of transport plays a significant role in Pakistan's connectivity and economy. However,
challenges such as insufficient infrastructure, underutilization, and maintenance issues need to be addressed for
sustainable development. The author emphasizes the strategic importance of improving transportation to boost
trade and regional integration.
6.3.2 assess the advantages and disadvantages of road, rail, air and water transport within or outside Pakistan
for both goods and people;
Based on the Books, the assessment of different modes of transport—road, rail, air, and water transport—within
and outside Pakistan involves evaluating both the advantages and disadvantages of each, considering their
impact on the movement of goods and people.
1. Road Transport
Advantages:
-Flexibility and Accessibility: Road transport provides extensive access to rural areas, connecting even remote
and interior regions of Pakistan to urban centers. This makes it essential for the transportation of both goods
and people.
-Speed and Convenience: For short distances, road transport is faster and more convenient than other modes
of transport, especially in emergencies or time-sensitive situations.
- Cost-Effective for Short Distances: For goods that require quick delivery over short distances, road transport
is often more economical than rail or air.
Disadvantages:
-Traffic Congestion: In urban areas, traffic congestion can delay the movement of both people and goods. Roads
are often overcrowded, leading to longer travel times.
-Poor Infrastructure in Rural Areas: Some rural areas suffer from poorly maintained roads, making
transportation difficult, especially during adverse weather conditions.
- Environmental Impact: Heavy reliance on road transport contributes to air pollution and road degradation,
particularly with an increase in vehicle numbers.
2. Rail Transport
Advantages:
- Cost-Effective for Bulk Goods: Rail transport is economical for moving large quantities of goods, especially
bulk commodities like coal, cement, and agricultural products. It also reduces congestion on roads.
- Efficiency for Long Distances: Trains are effective for long-distance travel, particularly in transporting goods
across large areas of Pakistan and into neighboring countries.
- Environmentally Friendly: Compared to road transport, trains generally have a lower carbon footprint per unit
of goods transported, making them more sustainable.
 Disadvantages:
-Limited Coverage: Rail infrastructure in Pakistan is limited and not well developed in certain regions,
particularly in remote areas. It cannot reach as many destinations as road transport.
-Slow and Inflexible: Compared to road transport, rail is slower and less flexible, with fixed routes and
schedules. It also suffers from delays and inefficiency in some areas due to outdated infrastructure.
-Maintenance Issues: The rail system in Pakistan often faces issues with aging infrastructure, requiring
substantial investment for modernization and repairs.
3.Air Transport
Advantages:
- Speed and Efficiency: Air transport is the fastest mode of transport, ideal for long-distance travel, especially
for high-value, low-bulk goods like electronics, perishables, and pharmaceuticals.
- Connectivity: Air transport connects Pakistan with the rest of the world, facilitating international trade and
tourism. It is essential for the movement of people and goods across long distances in a short time.
- High Capacity for Passengers: Airports in major cities like Karachi, Lahore, and Islamabad cater to a large
number of passengers, making air travel convenient for international and domestic passengers.
Disadvantages:
- High Costs: Air transport is significantly more expensive than road or rail transport, both for passengers and
goods. This makes it impractical for transporting large quantities of low-value goods.
- Limited Access and Infrastructure: Air transport is restricted to airports, and certain regions of Pakistan,
especially rural areas, do not have access to air travel. Airports also require significant investment in terms of
infrastructure and operations.
- Environmental Impact: Air travel contributes to higher carbon emissions compared to other transport modes.
4. Water Transport
Advantages:
-Cost-Effective for Bulk Cargo: Water transport is one of the cheapest ways to move heavy and bulk cargo, such
as oil, coal, and minerals. It is especially advantageous for international trade.
- Efficient for International Trade: Pakistan’s seaports, such as Karachi and Gwadar, are crucial for connecting
with global markets, facilitating large-scale export and import activities.
- Large Capacity: Ships and vessels have a large carrying capacity, making them ideal for moving large quantities
of goods across long distances.
Disadvantages:
- Slow and Dependent on Weather: Water transport is slower than air or road transport, and its efficiency can
be affected by weather conditions, such as storms or high tides.
 - Limited to Coastal Regions: Water transport is confined to regions with access to oceans or rivers, limiting its
utility for inland areas. Pakistan's major ports are located in coastal areas, which restricts its use for domestic
transportation.
- Underdeveloped Infrastructure: Although Pakistan has major ports, inland water transport is not well
developed. The country lacks an efficient system for transporting goods via rivers and canals, limiting the
potential of water transport within the country.
In conclusion, each mode of transport in Pakistan has distinct advantages and disadvantages. While road
transport offers flexibility and ease of access, it faces challenges such as congestion and environmental concerns.
Rail transport is cost-effective for bulk goods but suffers from limited coverage and infrastructure issues. Air
transport provides speed and efficiency, particularly for high-value goods, but is expensive and limited in
accessibility. Water transport remains the most cost-effective for bulk goods and international trade but is slow
and confined to coastal areas. To enhance Pakistan’s trade and transportation efficiency, improvements in
infrastructure and integration of various transport modes are essential.
6.3.4 assess the feasibility of development of Gawadar port and its importance in the economic development
of Pakistan.
The development of Gwadar Port is a significant aspect of Pakistan's economic and strategic ambitions. Resource
books provide insights into its feasibility and economic importance. Below is an assessment based on the themes
discussed in these texts:
Feasibility of Gwadar Port Development
Strategic Location:
- Gwadar Port is located on the southwestern coast of Pakistan, at the mouth of the Persian Gulf, near the key
oil shipping routes in the Arabian Sea.
- The port’s proximity to international sea lanes makes it an ideal hub for trade between South Asia, the Middle
East, and Central Asia.
Infrastructure Development:
- The initial development faced challenges due to the lack of modern infrastructure, including roads, railways,
and utilities.
- With the assistance of China under the China-Pakistan Economic Corridor (CPEC), Gwadar has witnessed
substantial investment in its infrastructure, including the construction of deep-sea berths, free zones, and
connecting road and rail networks.
Economic Challenges:
- The region around Gwadar is underdeveloped, with limited skilled labor and resources.
- Political instability, security issues in Balochistan, and local discontent over resource distribution have posed
challenges to its full-scale development.
Environmental Concerns:
- The development of the port could lead to ecological changes, such as marine pollution and coastal erosion,
which require mitigation efforts.
Importance of Gwadar Port in Economic Development
Trade and Connectivity:
- Gwadar serves as a gateway for trade with landlocked Central Asian Republics (CARs) and Western China,
providing these regions with access to warm waters.
- It is expected to handle a significant portion of Pakistan’s maritime trade, reducing dependency on Karachi Port.
Energy and Resource Corridor:
- Gwadar is pivotal in the transshipment of oil and gas, serving as a potential energy hub for the region.
- The development of oil refineries and storage facilities enhances Pakistan’s capacity to manage energy imports
and exports.
Job Creation and Industrial Growth:
- The establishment of the Gwadar Free Zone has attracted foreign investment and is expected to generate
employment opportunities.
- Industries such as fisheries, tourism, and logistics have the potential to thrive with Gwadar’s development.
Strategic Importance:
- Gwadar enhances Pakistan’s strategic depth by providing an alternative to existing ports and strengthening its
maritime security.
- The port’s development under CPEC underscores Pakistan's geopolitical significance in the Belt and Road
Initiative (BRI).
Both texts emphasize the **critical role of Gwadar Port in Pakistan's economic and strategic development**.
However, the realization of its full potential depends on overcoming infrastructure, security, and socio-political
challenges. With sustained investment and strategic planning, Gwadar can serve as a key driver of economic
growth, enhancing Pakistan's trade connectivity, energy security, and regional integration.