Analyzing the dynamics of imports: a case of Pakistan Food industry

Abstract

Pakistan is undergoing major economic challenges as it spends more money than it earns. This project entails the historical review of food imports of Pakistan over the past 23 years and analyzed the economic impact of food imports on the economy of Pakistan. It finds out reasons behind the lack of buying local products and preferring the foreign products. Descriptive analyses, Graphical techniques and Correlation between variables were applied on GDP, Imports of Goods and Services, Food Imports, Food Production Index and Current Account Balance to analyse the conditions of economy. Research findings shows that major changes should be applied in order to improve the conditions of the economy, recommendations on the basis of analyses will help to cut unnecessary imports of food items if they are implemented, it will help the government to identify the food items which should be imported or can be produced locally and the reasons for lack of trust of consumers on local brands. If this all is implemented it will result into decreased imports, trade deficit will also decrease, hence making the economy more stabilized.