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The trade relations between Pakistan and Japan began before the establishment of diplomatic relations in 1952. In 1960 both the countries signed Commerce Treaty which granted most favored nation status on trade and entry of nationals of the signatories. The trade has mostly remained in favor of Japan, however, Pakistan also received benefit from the Japanese aid in the various sectors. Pakistan should improve standard of its exports Japan to capture the market in view of goods of other countries penetrating into Japanese market. Moreover, Pakistan should also focus on export of non-traditional items to Japan aimed at earning more foreign exchange.