The Netherlands has been an important economic partner for Pakistan in the areas of trade and investment. In the European Union, The Netherlands is Pakistan 's fifth most important export destination after United Kingdom , Germany , Italy and France . Pakistan has traditionally a trade surplus with The Netherlands which in the year 2003-04 was to the tune of $ 114 million. The total bilateral trade flow between the two countries amounts to $ 555 million.

In 2003-04, Pakistan 's total imports from The Netherlands were recorded at $ 220 million. 13% growth over last year was achieved. Imports from the Netherlands have also grown by 44% since the year 1999-2000.

Pakistan 's imports from the Netherlands mainly comprise of capital goods and industrial raw material. Machinery, chemical elements and compounds, chemical products, pharmaceutical products, miscellaneous edible products, iron and steel manufactures, manufactures of non-ferrous metals, animal oils and fats, ores and concentrates of non-ferrous metals and essential oils are the main import items.

Pakistan 's exports to The Netherlands have been on a steady growth path of 14% annually with since the year 2000-01. With export value at $ 335 million during 2003-04, a record growth rate of 17% over 2002-03 was achieved. Pakistan 's main export products to The Netherlands are: knitwear, bedwear, readymade garments, molasses, sports goods, cotton fabrics, towels, leather manufactures, leather clothing, leather gloves, other leather manufactures, rice and made up articles.

Pakistan 's Exports To The Netherlands Major product shares (2003-04)
Knitwear	22%
Bedwear	21%
Readymade Garments	15%
Molasses	7%
Sports Goods	6%
Cotton Fabrics	5%
Towels	4%
Leather Manufactures	4%
Leather Clothing	3%
Leather Gloves	1%
Other Leather Manf.	0.2%
Rice	4%
Made Up Articles.	2%

Pakistan 's core and traditional export products have fared well in The Netherlands over the period 2001-2004. The annual average growth rates of these export products have been in double digit: hosiery (61%), bedwear (33%) readymade garments (11%) rice (42%) made ups (25%), towels (13%) and sports goods (13%).Growth driven by Pakistan's traditional products has taken advantage of EU Tariff concessions given to Pakistan through the Drug Related Arrangement under the GSP scheme.

FOREIGN DIRECT INVESTMENT:

During the financial year 2003-2004, The Netherlands emerged as Pakistan 's seventh most important source of FDI after United Kingdom , USA , Saudi Arabia , Switzerland , China and Japan . Inflow of direct investment from The Netherlands into Pakistan stood at $ 12.1 million- depicting a fourfold increase over last year. Total Dutch foreign direct investment abroad during the year 2004 stood at only € 540 million ( United States , United Kingdom and Belgium are the most important destinations for Dutch FDI).

The presence and expansion of 19 major Dutch multinationals bears evidence to the historical bilateral economic relationship between Pakistan and The Netherlands. Major Dutch companies operating in Pakistan include Shell, Philips Electrical, ABN Amro, P&O Nedloyd, Unilever, KPMG, Royal Vopak, Fugro, SHV Energy, Stork IBI, Arkadis and Organon.