Question Simulator

O Level Pakistan Studies (2059)

Trade

3 questions · about 2% of the marks we indexed · examined in 3 of 9 sessions.

Questions by year

2026

  • 2026 May/June · Paper 21 · Q3 (c(i), c(ii), d)7.2 marksTrading partners and balance of trade

2024

  • 2024 May/June · Paper 21 · Q5 (b(i), b(ii), b(iii), c, d)9.6 marksOfficial paper ↗Factors affecting trade · Imports and exports · Trading partners and balance of trade

2022

  • 2022 Oct/Nov · Paper 21 · Q4 (b(i), b(ii), b(iii), b(iv), c, d)12 marksFactors affecting trade · Imports and exports · Trading partners and balance of trade

References only, not question text. Open Official paper ↗ where Cambridge publishes the paper, or see the official Cambridge past-papers page; for other papers, ask your school. “Paper 42” means Paper 4, variant 2.

Practice questions

Original questions written by HomiLabs in the style of the exam, with answers and mark schemes. They are not Cambridge past paper questions and have not been reviewed by Cambridge. Try each one before opening the answer.

Q1Factors affecting trade · Core · Paper 2 style · 5 marks
  1. (a) State three factors that make it difficult for Pakistan to increase its exports. [3]
  2. (b) Explain how load-shedding affects Pakistan's ability to export. [2]
Show answer
  1. (a) High costs of electricity and gas for factories; a narrow range of export goods, mainly textiles; competition from countries such as Bangladesh, Vietnam and China.
    1 mark each for any three: high energy costs/load-shedding; narrow export base; low value addition; competition; quality/standards problems; political instability; poor infrastructure/port delays; tariffs and barriers abroad; low productivity/skills.
  2. (b) Power cuts stop factory production, so exporters miss delivery deadlines and foreign buyers may move their orders to more reliable suppliers.
    1 mark effect on production + 1 mark consequence for exports (late orders/lost buyers/higher costs → less competitive).
Q2Factors affecting trade · Core · Paper 2 style · 5 marks
  1. (a) State what is meant by 'value addition' in trade. [1]
  2. (b) Explain why Pakistan earns more from exporting garments than from exporting the same weight of raw cotton. [3]
  3. (c) Name one Pakistani city famous for exporting sports goods and surgical instruments. [1]
Show answer
  1. (a) Processing a raw material into a more finished product so it can be sold for a higher price, e.g. turning raw cotton into garments.
    1 mark for processing/manufacturing to increase value.
  2. (b) Garments have gone through spinning, weaving, dyeing and stitching, so the labour, skill and processing are included in the price. Raw cotton is a primary product sold cheaply and its price changes a lot on world markets, while finished goods sell at higher and more stable prices.
    1 mark each, max 3: processing adds value; more labour/skills/jobs included; primary product prices low/volatile; brand/design increases price; idea illustrated with cotton → yarn → cloth → garments.
  3. (c) Sialkot
    1 mark.
Q3Factors affecting trade · Core · Paper 2 style · 4 marks
  1. (a) Explain two ways in which a fall in the value of the Pakistani rupee against the US dollar affects trade. [4]
Show answer
  1. (a) Pakistani exports become cheaper for foreign buyers, which may increase demand for goods such as textiles and rice. Imports such as oil and machinery become more expensive in rupees, which raises costs for industry and consumers and can cause inflation.
    Two developed points: exports cheaper → more competitive; imports dearer → higher import bill/inflation; imported raw materials dearer → exporters' costs rise; debt repayment cost rises.
Q4Factors affecting trade · Standard · Paper 2 style · 6 marks
  1. (a) State what is meant by GSP+ status. [2]
  2. (b) Explain two ways in which GSP+ status has benefited Pakistan's textile industry. [4]
Show answer
  1. (a) A European Union scheme that allows a developing country to export many goods to the EU with zero or reduced import duties, in return for following international conventions on human rights, labour rights, the environment and good governance.
    1 mark reduced/zero tariffs into EU; 1 mark conditional on implementing international conventions.
  2. (b) Without import duties, Pakistani textiles and garments are cheaper in EU shops than goods from competitors who pay duties, so EU exports grew. Higher orders led factories to invest in new machinery and employ more workers.
    Two developed points: tariff-free access → price competitiveness; increased exports to EU (e.g. Germany, Spain, Netherlands); investment and jobs; foreign exchange earnings.
Q5Factors affecting trade · Standard · Paper 2 style · 6 marks
  1. (a) Explain two reasons why Pakistan's exports depend heavily on the cotton crop. [4]
  2. (b) State two other natural events that can reduce Pakistan's exports. [2]
Show answer
  1. (a) Textiles are Pakistan's largest export, and most of them are made from locally grown cotton, so a good crop supplies mills cheaply. A poor cotton harvest, caused for example by floods, pests or heat, forces mills to import cotton at higher cost or cut production, reducing exports.
    Two developed points: textiles largest share of exports; local raw material; crop failure → imports/higher costs; cotton yarn and cloth also exported; whole chain (ginning, spinning, weaving) depends on it.
  2. (b) Floods (e.g. the 2022 floods destroying crops such as cotton and rice); droughts or heatwaves reducing crop yields.
    1 mark each for any two: floods; drought; heatwaves; pest attacks (e.g. locusts, pink bollworm); earthquakes damaging infrastructure.
Q6Factors affecting trade · Standard · Paper 2 style · 6 marks

Two countries make the same shirt. Country X sells it for US$10.00 and must pay an import duty of 12% in the buying country. Country Y sells it for US$10.50 but pays no import duty because of a trade agreement (illustrative figures).

  1. (a) Calculate the amount of import duty paid on one shirt from Country X. [1]
  2. (b) Calculate the final price in the importing country of a shirt from Country X and from Country Y. [2]
  3. (c) Explain why trade agreements that remove import duties are important for a country such as Pakistan. [3]
Show answer
  1. (a) US$1.20
    12% of US$10.00 = 0.12 × 10.00 = US$1.20.
  2. (b) Country X: US$11.20; Country Y: US$10.50
    X: 10.00 × 1.12 = 11.20 (1); Y: 10.50 with zero duty (1).
  3. (c) Without duty its goods are cheaper than those of competitors who still pay duty, as Country Y shows, so buyers place more orders. This increases export earnings and jobs, and the small profit margins in textiles mean even a few per cent of duty can decide where orders go.
    1 mark each, max 3: price competitiveness; more orders/exports; jobs and foreign exchange; small margins in textiles; illustrated with the figures.
Q7Factors affecting trade · Standard · Paper 2 style · 6 marks
  1. (a) Explain two ways in which improvements in transport and ports help Pakistan's trade. [4]
  2. (b) Suggest one reason why trade with neighbouring Afghanistan is often lower than expected. [2]
Show answer
  1. (a) Faster clearance and less congestion at Karachi and Port Qasim reduce the time and cost of shipping goods, making exports more competitive. Motorways and dry ports allow goods from inland cities such as Faisalabad and Sialkot to reach ships quickly and reliably.
    Two developed points: lower transport costs; faster/reliable delivery; dry ports and customs clearance inland; Gwadar/CPEC new routes; transit trade with Afghanistan/Central Asia.
  2. (b) Border closures at crossings such as Torkham and Chaman because of security and political tensions stop trucks from crossing, so trade is interrupted.
    1 mark reason + 1 development: border closures; security; political disputes; informal/smuggling trade; Afghan transit trade misuse; payment/banking problems.
Q8Factors affecting trade · Standard · Paper 2 style · 4 marks
  1. (a) State two quality or standards requirements that exporters of food products, such as mangoes or rice, must meet to sell to Europe. [2]
  2. (b) Explain how failing to meet these standards can harm Pakistan's trade. [2]
Show answer
  1. (a) Produce must be free of pests such as fruit flies (e.g. hot-water treatment of mangoes); pesticide residues must be below set limits (also: proper packaging, labelling, traceability, certified hygiene).
    1 mark each for any two: pest-free/plant health certificate; pesticide residue limits; aflatoxin limits for rice/spices; hygiene/certification; labelling and traceability; cold-chain packaging.
  2. (b) Shipments may be rejected or the country can be banned from exporting that product, so exporters lose income and buyers turn to other suppliers.
    1 mark rejection/ban; 1 mark consequence (lost earnings/reputation/buyers switch).
Q9Factors affecting trade · Challenge · Paper 2 style · 6 marks
  1. (a) Explain why a narrow export base is a weakness for Pakistan's economy. [4]
  2. (b) Suggest two ways in which Pakistan could diversify its exports. [2]
Show answer
  1. (a) When a country relies on a few products, mainly textiles, rice and leather, a fall in world demand or prices for those goods, or a poor cotton crop, sharply reduces total export earnings. It also means Pakistan competes head-on with many low-wage producers in the same goods, and earnings grow slowly because the goods are mostly low value.
    2 developed points: vulnerability to price/demand changes; dependence on one crop (cotton); strong competition in same products; low-value goods → slow growth in earnings.
  2. (b) Develop IT and software exports; develop high-value manufactured goods such as engineering goods, pharmaceuticals or processed foods (also: minerals from Reko Diq, fruit and halal meat).
    1 mark each for any two realistic suggestions.
Q10Factors affecting trade · Challenge · Paper 2 style · 6 marks

A Faisalabad textile exporter's cost of producing 1,000 metres of cloth (illustrative figures):Year 1: raw materials and labour Rs 250 per metre, energy Rs 150 per metreYear 2: raw materials and labour Rs 250 per metre, energy Rs 270 per metre

  1. (a) Calculate the exporter's total cost of producing 1,000 metres in each year. [2]
  2. (b) Calculate the percentage increase in total cost. [1]
  3. (c) Explain how rising energy costs affect Pakistan's ability to compete in world markets. [3]
Show answer
  1. (a) Year 1: Rs 400,000; Year 2: Rs 520,000
    Year 1: (250 + 150) × 1,000 = 400,000 (1); Year 2: (250 + 270) × 1,000 = 520,000 (1).
  2. (b) 30%
    (520,000 − 400,000) ÷ 400,000 × 100 = 30%.
  3. (c) Higher production costs force exporters to raise prices or accept lower profits. Competitors such as Bangladesh and Vietnam with cheaper energy can offer lower prices, so foreign buyers switch orders, and some Pakistani mills close or cut workers.
    1 mark each, max 3: higher cost → higher price or lower profit; competitors cheaper; lost orders; mill closures/unemployment; less investment.
Q11Factors affecting trade · Challenge · Paper 2 style · 6 marks
  1. (a) Read the two views:View A: The most important factor limiting Pakistan's exports is the high cost of energy.View B: The most important factor limiting Pakistan's exports is the narrow range and low value of the goods exported.Which view do you agree with more? Give reasons for your answer, referring to both views. [6]
Show answer
  1. (a) A: electricity and gas tariffs are high and supply unreliable, so costs rise and orders are lost to competitors; mills close. B: exports concentrated in textiles and rice, mostly low value, vulnerable to price changes and competition; little high-tech or branded output. Reasoned judgement, possibly linking both (energy costs discourage investment in higher-value goods).
    Levels: L1 (1–2) simple; L2 (3–4) developed points for one view; L3 (5–6) developed points for both views with conclusion.
Q12Factors affecting trade · Challenge · Paper 2 style · 6 marks
  1. (a) Evaluate the extent to which political stability is important for increasing Pakistan's foreign trade. Give reasons for your answer. [6]
Show answer
  1. (a) Important: instability and frequent policy changes discourage foreign investors and buyers, cause strikes and shutdowns that delay shipments, and affect the exchange rate and trade agreements. Other factors also matter: energy costs and supply, quality and standards, skills and technology, infrastructure and ports, world demand, natural disasters such as floods. Judgement on extent.
    Levels: L1 (1–2) simple points; L2 (3–4) developed points on one side; L3 (5–6) developed points on political stability and other factors with judgement.
Q13Trading partners and balance of trade · Core · Paper 2 style · 4 marks
  1. (a) Define the term 'balance of trade'. [2]
  2. (b) State what is meant by a 'trade deficit'. [1]
  3. (c) Name the country that is Pakistan's largest single source of imports. [1]
Show answer
  1. (a) The difference between the value of a country's exports of goods and the value of its imports of goods over a period, usually a year.
    1 mark difference between exports and imports; 1 mark value of goods/over a period.
  2. (b) When the value of imports is greater than the value of exports.
    1 mark.
  3. (c) China
    1 mark.
Q14Trading partners and balance of trade · Core · Paper 2 style · 4 marks

Illustrative trade figures for a country (US$ billion):Year 1: exports 28, imports 53Year 2: exports 31, imports 55

  1. (a) Calculate the balance of trade in each year. [2]
  2. (b) State whether the balance of trade improved or worsened between Year 1 and Year 2, and give a reason from the data. [2]
Show answer
  1. (a) Year 1: −US$25 billion; Year 2: −US$24 billion
    Year 1: 28 − 53 = −25 (1); Year 2: 31 − 55 = −24 (1). Must show deficit/negative.
  2. (b) Improved slightly: the deficit fell by US$1 billion because exports rose by US$3 billion while imports rose by only US$2 billion.
    1 mark improved; 1 mark reason using figures.
Q15Trading partners and balance of trade · Core · Paper 2 style · 4 marks
  1. (a) Name two countries that are major buyers of Pakistan's exports. [2]
  2. (b) Suggest two reasons why the USA is one of Pakistan's largest export markets. [2]
Show answer
  1. (a) Any two of: USA, China, UK, Germany, UAE, Netherlands, Afghanistan, Spain, Italy, Belgium.
    1 mark each; USA, China and UK most common.
  2. (b) It is a very large, rich consumer market that buys large quantities of textiles such as bed linen, towels, denim and garments; American retailers buy from Pakistan because its cotton textiles are good value.
    1 mark each for any two: large wealthy market; high demand for textiles/garments; competitive Pakistani prices; long-standing trade links; quotas abolished so more access.
Q16Trading partners and balance of trade · Standard · Paper 2 style · 6 marks

Illustrative values of exports from Pakistan to its top five markets in one year (US$ billion):USA 5.4China 2.8United Kingdom 2.6Germany 2.2UAE 2.0

  1. (a) Calculate the total value of exports to the five countries. [1]
  2. (b) Calculate the percentage of the five-country total that went to the USA. [1]
  3. (c) If total exports were US$30 billion, calculate the percentage that went to countries not in the table. [2]
  4. (d) Using the table, describe the pattern of Pakistan's main export markets. [2]
Show answer
  1. (a) US$15.0 billion
    5.4 + 2.8 + 2.6 + 2.2 + 2.0 = 15.0.
  2. (b) 36%
    5.4 ÷ 15.0 × 100 = 36%.
  3. (c) 50%
    M1 (30 − 15) ÷ 30 × 100; A1 50%.
  4. (d) The USA is by far the largest single market (US$5.4 billion, about twice China's US$2.8 billion); two of the five (the UK and Germany) are in Europe, showing the importance of Western markets; China is the main Asian market and the UAE the main market in the Middle East.
    1 mark each, max 2: USA largest/about double the next; two European markets (UK, Germany)/Western markets important; China second; Gulf market (UAE); figures quoted.
Q17Trading partners and balance of trade · Standard · Paper 2 style · 6 marks
  1. (a) Explain two reasons why Pakistan has had a trade deficit for most years since independence. [4]
  2. (b) State how money sent home by Pakistanis working abroad helps the country when it has a trade deficit. [2]
Show answer
  1. (a) Pakistan must import large amounts of oil, LNG and machinery that it cannot produce, and these are expensive. Its exports are mostly low-value goods such as textiles and rice, so earnings do not cover the import bill.
    Two developed points: fuel imports; machinery/capital goods; edible oil, food and chemicals; narrow/low-value exports; growing population raises consumer demand; weak industrial base.
  2. (b) Remittances bring in foreign currency (mainly US dollars), which helps pay for imports and reduces pressure on foreign exchange reserves and the current account.
    1 mark foreign exchange earnings; 1 mark helps pay for imports/supports reserves/current account.
Q18Trading partners and balance of trade · Standard · Paper 2 style · 5 marks

Illustrative figures for Pakistan's trade with China in one year (US$ billion):Exports to China: 2.8Imports from China: 15.8

  1. (a) Calculate Pakistan's balance of trade with China in this year. [1]
  2. (b) Calculate the value of imports from China as a multiple of exports to China. Give your answer to one decimal place. [1]
  3. (c) Suggest two types of goods that Pakistan imports from China and explain why. [2]
  4. (d) State one export that Pakistan sells to China. [1]
Show answer
  1. (a) −US$13.0 billion (a deficit)
    2.8 − 15.8 = −13.0.
  2. (b) 5.6 times
    15.8 ÷ 2.8 = 5.64 ≈ 5.6.
  3. (c) Machinery and electrical equipment (including power and CPEC project equipment); mobile phones, electronics and chemicals. China produces them cheaply and in large quantities, and CPEC projects use Chinese equipment.
    1 mark for two goods (machinery, electronics/phones, chemicals, iron and steel, synthetic yarn); 1 mark reason (cheap/large-scale producer; CPEC equipment; FTA lowers duties).
  4. (d) Cotton yarn (also accept copper, rice, sesame seeds, seafood, chromite).
    1 mark.
Q19Trading partners and balance of trade · Standard · Paper 2 style · 5 marks
  1. (a) Explain why Pakistan imports large amounts of goods from Gulf countries such as Saudi Arabia, the UAE and Qatar. [4]
  2. (b) Name one product that Pakistan exports to Gulf countries. [1]
Show answer
  1. (a) These countries are major producers of crude oil, petroleum products and LNG, which Pakistan needs for transport, industry and electricity but produces too little of. They are close by, so shipping costs are low, and Saudi Arabia has sometimes supplied oil on deferred payment, which helps Pakistan's reserves.
    Two developed points: oil/LNG producers; Pakistan's energy shortage; short sea distance; deferred payment/friendly relations; re-exports through Dubai.
  2. (b) Rice (also accept fruit and vegetables, meat, textiles, cement).
    1 mark.
Q20Trading partners and balance of trade · Standard · Paper 2 style · 5 marks

Illustrative trade figures for a country (US$ billion):Year 1: exports 24, imports 40Year 2: exports 26, imports 47Year 3: exports 28, imports 55Year 4: exports 31, imports 62

  1. (a) Describe the pattern shown by the data. [3]
  2. (b) Calculate the trade deficit in Year 4 as a percentage of imports in Year 4. Give your answer to one decimal place. [2]
Show answer
  1. (a) Imports rose every year, from US$40 billion to US$62 billion (an increase of US$22 billion); exports rose more slowly, from US$24 billion to US$31 billion; so the trade deficit widened from US$16 billion to US$31 billion.
    1 mark imports rising with figures; 1 mark exports rising more slowly with figures; 1 mark deficit widening with figures.
  2. (b) 50.0%
    M1 (62 − 31) ÷ 62 × 100; A1 50.0%.
Q21Trading partners and balance of trade · Challenge · Paper 2 style · 8 marks

Illustrative trade figures for a country (US$ billion):Year 1: exports 30, imports 55Year 2: exports 31, imports 50Year 3: exports 32, imports 46

  1. (a) Calculate the percentage change in exports from Year 1 to Year 3. Give your answer to one decimal place. [2]
  2. (b) Calculate the percentage change in imports from Year 1 to Year 3. Give your answer to one decimal place. [2]
  3. (c) Calculate the export/import ratio (exports ÷ imports × 100) for Year 3 to the nearest whole number. [1]
  4. (d) Suggest two reasons why a government might deliberately reduce imports, and one disadvantage of doing so. [3]
Show answer
  1. (a) 6.7% increase
    M1 (32 − 30) ÷ 30 × 100; A1 6.7%.
  2. (b) 16.4% decrease
    M1 (46 − 55) ÷ 55 × 100 = −16.36; A1 16.4% decrease.
  3. (c) 70
    32 ÷ 46 × 100 = 69.6 ≈ 70.
  4. (d) Reasons: to reduce the trade deficit; to protect foreign exchange reserves and the value of the rupee (e.g. by raising import duties or restricting luxury imports). Disadvantage: industries that need imported raw materials and machinery may slow down, reducing output, exports and jobs.
    1 mark each for two reasons (reduce deficit; protect reserves/currency; protect local industry; meet IMF conditions); 1 mark for disadvantage (shortage of inputs; slower growth; inflation; retaliation).
Q22Trading partners and balance of trade · Challenge · Paper 2 style · 5 marks
  1. (a) Explain the difference between the balance of trade and the balance of payments. [3]
  2. (b) Suggest two problems for Pakistan of a large and persistent trade deficit. [2]
Show answer
  1. (a) The balance of trade compares only the value of exports and imports of goods. The balance of payments records all money flows between a country and the rest of the world, including services, remittances, interest, loans and investment, so a country with a trade deficit may have a smaller current account deficit if remittances are large.
    1 mark trade = goods only; 1 mark payments = all transactions (services, remittances, capital/investment, loans); 1 mark example/link to remittances.
  2. (b) Foreign exchange reserves fall, so the country must borrow from abroad (e.g. the IMF) and debt rises; the rupee loses value, raising the price of imports and causing inflation.
    1 mark each for any two: falling reserves; borrowing/debt; currency depreciation; inflation; IMF conditions/austerity; slower growth.
Q23Trading partners and balance of trade · Challenge · Paper 2 style · 6 marks
  1. (a) Read the two views:View A: Pakistan should focus on trade with neighbouring countries such as China, Afghanistan, Iran and the Central Asian republics.View B: Pakistan should focus on trade with distant markets such as the USA and the European Union.Which view do you agree with more? Give reasons for your answer, referring to both views. [6]
Show answer
  1. (a) A: shorter distances and lower transport costs; CPEC road links to China; Afghanistan and Central Asia are landlocked and can use Pakistani ports and buy Pakistani food and goods; regional agreements. B: USA and EU are rich, large markets that pay higher prices for textiles; GSP+ gives duty-free access to the EU; neighbours' trade often disrupted by border closures, insecurity and political tensions. Reasoned judgement.
    Levels: L1 (1–2) simple statements; L2 (3–4) developed points for one view; L3 (5–6) developed points for both with a supported conclusion.
Q24Trading partners and balance of trade · Challenge · Paper 2 style · 6 marks
  1. (a) Evaluate the extent to which Pakistan can reduce its trade deficit by increasing exports rather than by reducing imports. Give reasons for your answer. [6]
Show answer
  1. (a) Increasing exports: value addition in textiles, IT exports, new markets, use of GSP+ and FTAs, minerals and food exports; but limited by energy costs, competition, narrow base and slow change. Reducing imports: develop local energy (Thar coal, hydel, solar) to cut fuel imports, grow more edible oil seeds, import substitution, duties on luxuries; but many imports (machinery, raw materials) are needed for growth and exports. Judgement on extent, recognising both are needed.
    Levels: L1 (1–2) simple points; L2 (3–4) developed points on one approach; L3 (5–6) developed points on both approaches with judgement.
Q25Imports and exports · Core · Paper 2 style · 6 marks
  1. (a) Name two of Pakistan's main exports. [2]
  2. (b) Name two of Pakistan's main imports. [2]
  3. (c) State why Pakistan imports large amounts of palm oil and from which region most of it comes. [2]
Show answer
  1. (a) Any two of: cotton textiles (yarn, cloth, bed linen, towels, garments/knitwear), rice, leather goods, sports goods, surgical instruments, fruit, fish, cement.
    1 mark each.
  2. (b) Any two of: petroleum and petroleum products, LNG, machinery, edible (palm) oil, chemicals, iron and steel, vehicles, tea, mobile phones.
    1 mark each.
  3. (c) Pakistan does not grow enough oilseeds to meet demand for cooking oil and ghee; most palm oil comes from Indonesia and Malaysia in South-East Asia.
    1 mark reason (domestic oilseed production too low/high demand for cooking oil); 1 mark Indonesia/Malaysia/South-East Asia.
Q26Imports and exports · Core · Paper 2 style · 4 marks

Illustrative values of a country's exports in one year (US$ billion):Textiles 18.0Rice 3.6Leather and sports goods 1.8Other goods 6.6Total 30.0

  1. (a) Calculate the angle that textiles would take on a pie chart. [1]
  2. (b) Calculate the percentage of exports made up of rice. [1]
  3. (c) Calculate the angles for the other three categories. [2]
Show answer
  1. (a) 216°
    18 ÷ 30 × 360 = 216°.
  2. (b) 12%
    3.6 ÷ 30 × 100 = 12%.
  3. (c) Rice 43.2°, leather and sports goods 21.6°, other goods 79.2°
    Rice 3.6 → 43.2°; leather/sports 1.8 → 21.6°; other 6.6 → 79.2° (2 marks all three; 1 mark for two).
Q27Imports and exports · Standard · Paper 2 style · 5 marks
  1. (a) Explain why rice is an important export for Pakistan. [3]
  2. (b) Suggest two reasons why the value of rice exports may fall in some years. [2]
Show answer
  1. (a) Pakistan grows large amounts of rice, especially high-quality basmati in the Punjab (e.g. around Gujranwala and Sialkot), which sells at high prices in the Gulf, Europe and elsewhere. Rice exports earn foreign exchange and support the incomes of farmers, mill workers and traders.
    1 mark each, max 3: large production/surplus; basmati quality and premium price; markets (Gulf, EU, China, Africa); foreign exchange; employment in farming and milling; second-largest export group after textiles.
  2. (b) Floods or water shortages reduce the harvest; competition from India and other producers lowers prices or takes markets.
    1 mark each for any two: floods/drought/water shortage; competition (India, Vietnam, Thailand); quality/pesticide rejections; fall in world prices; export bans to control local prices.
Q28Imports and exports · Standard · Paper 2 style · 6 marks
  1. (a) Explain two reasons why petroleum products and LNG form the largest group of Pakistan's imports. [4]
  2. (b) Suggest two ways in which Pakistan could reduce its fuel imports. [2]
Show answer
  1. (a) Pakistan's own oil and gas production is small and gas reserves are declining, so it must buy fuel abroad. Demand is very high because transport, industry and thermal power stations all depend on oil and gas, so the import bill is large, especially when world prices are high.
    Two developed points: limited domestic reserves/declining gas; demand from transport, industry, power; thermal-dominated electricity; rising vehicle numbers; high world prices.
  2. (b) Generate more electricity from local and renewable sources such as hydel, solar, wind and Thar coal; improve public transport and energy efficiency to reduce fuel use.
    1 mark each for any two: renewables/hydel; Thar coal; more exploration; public transport (metro buses, ML-1 railway); electric vehicles; energy efficiency; reduce losses.
Q29Imports and exports · Challenge · Paper 2 style · 6 marks

Illustrative export figures for a country:Year 1: total exports US$26 billion, of which 70% were manufactured goodsYear 2: total exports US$32 billion, of which 75% were manufactured goods

  1. (a) Calculate the value of manufactured goods exported in Year 1 and in Year 2. [2]
  2. (b) Calculate the percentage increase in the value of manufactured exports. Give your answer to one decimal place. [1]
  3. (c) Explain why an increase in the share of manufactured goods in exports is good for a country's economy. [3]
Show answer
  1. (a) Year 1: US$18.2 billion; Year 2: US$24.0 billion
    Year 1: 70% × 26 = 18.2 (1); Year 2: 75% × 32 = 24.0 (1).
  2. (b) 31.9%
    (24.0 − 18.2) ÷ 18.2 × 100 = 31.87 ≈ 31.9%.
  3. (c) Manufactured goods have value added, so they earn more per unit than raw materials; their prices are more stable than primary products; making them creates industrial jobs and develops skills and technology.
    1 mark each, max 3: value addition/higher earnings; price stability; employment; industrial growth/skills; less dependence on weather/crops.
Q30Imports and exports · Challenge · Paper 2 style · 6 marks
  1. (a) Evaluate the extent to which Pakistan's exports are still dominated by agricultural products and goods made from them. Give reasons for your answer. [6]
Show answer
  1. (a) Dominated: textiles are based on locally grown cotton; rice, fruit (mangoes, kinnow), vegetables, fish and meat; leather from livestock; so weather and crops strongly affect exports. Less dominated: growing exports of IT and software services, surgical instruments and sports goods (Sialkot), cement, chemicals and pharmaceuticals, engineering goods; textiles now often use imported cotton and synthetic fibres, and garments are manufactured products with value added. Judgement on extent.
    Levels: L1 (1–2) simple points; L2 (3–4) developed points on one side; L3 (5–6) developed points on both sides with a judgement.

Similar questions

Questions that test the same subtopic in different years, grouped so you can work on one skill at a time.

References only: find each question in its paper (official link where available, otherwise through your school).

Factors affecting trade Rare2 questions · 2/9 sessions
Trading partners and balance of trade 3 questions · 3/9 sessions
Imports and exports Rare2 questions · 2/9 sessions

Subtopics

Our analysis of how often each subtopic was examined and how many marks it carried, 2022 to May/June 2026.

SubtopicMarks indexedSessions
Factors affecting trade Rare122/9
Trading partners and balance of trade 11.43/9
Imports and exports Rare5.42/9

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