At independence, Pakistan's main trade partner was India. After about eight months, India raised its duty on export items. In 1949, when Pakistan did not devalue its currency along with the United Kingdom and India, India refused to accept the Pakistan government's decision. It was after this incident that Pakistan decided to deversify its trade relations.
Close relations were established with the United Kingdom and then with other Western European countries, Australia and New Zealand. Later, Pakistan began trading with the United States, Canada and many other countries around the world. Although trade with India was suspended in 1965, a new agreement was signed in 1978. A trade agreement with Bangladesh was signed in 1974.
At present. Pakistan has trade relations with many countries, but there are some regions and countries with which the volume of trade is greater. Europe, the United States, The Middle East, South East and East Asia are Pakistan's major trade partners. In the west, Pakistan's main trade partner is the United States, followed by the United Kingdom, Germany, France and Italy. These countries export and import heavily to and from Pakistan. Pakistan, however, imports more from them than it exports.
In the Middle East, Pakistan's main trade partners are Saudi Arabia, The United Arab Emarates and Kuwait. Pakistan imports oil in large quantities from those countries and exports rice and a small quantity of manufactured goods, Pakistan is a net importer in Middle East trade. Pakistan's leading trade partners in South East and East Asia are Malaysia, Japan, China and South Korea. Pakistan imports palm oil from Malaysia and manufactured goods from Japan, China and South Korea, Pakistan is a net importer with these countries.
Pakistan has minor trade links with South Asia ( India, Bangladesh, Sri Lanka, Nepal ) and the newly created Central Asian states.