摘要：In this study, the gravity model of trade is used to analyze the export environment of Pakistan. As clear from trade data, Pakistan’s share in world exports is marginal and imports dominate the trade balance. The inability of diversification both in terms of products and markets is regarded as the main cause behind this trade deficit. This research highlights the main influencing factors affecting the export environment of Pakistan. The results of the gravity equation are used to calculate the export potentials of Pakistan with its partner countries. The results suggest Pakistan still has plenty of export potential with most of the partner countries and as such Pakistan can possibly reduce or control the trade deficit by targeting these countries.
