This paper reviews Pakistan'srecent trade performance, its trade policy and trade costs.Different dimensions of trade performance growth andorientation, diversification and sophistication areassessed, complemented by an in-depth analysis of exportdynamics in the period 2001-10 using firm-level data. Aneconometric exercise is also performed to identify theimpact of tariffs, exchange rates, fixed costs to export,foreign demand, and preferential trade policy on the abilityof firms to increase their exports. The analysis ofPakistan's trade policy includes tariffs, effectiveprotection and trade restrictiveness estimates, as well asan assessment of the role of preferential trade agreementsin the context of regional integration. Finally, the maincharacteristics of trade facilitation and logistics areanalyzed, covering the capacity, performance, quality ofservices and degree of integration of the logistics system.