There is no country  in the world today which produces all the commodities it needs. Every country, therefore, tries to produce those commodities in which it has comparative advantage. It exchanges part of those commodities with the commodities produced by other countries relatively more efficiently. The relative difference in factor endowments, technology, taste etc., among the nations of the world have greatly widened the basis of international trade. The developed countries are generally exporting consumer and industrial goods to the developing world and import primary goods from them. The developing countries, depending upon their state of industrialization, are mostly exporting raw material and semi-finished goods and getting finished goods and services from the advanced countries. The low income countries are thus at a disadvantageous position. However, the main contributions of trade to economic development of the low income countries including Pakistan.