Foreign trade is an absolute necessity for a high standard of living and the material well-being of people. Every nation needs to export as an outlet for every increasing production of its farms and factories; on the other hand, every nation must have imports to supply its growing need for raw materials and satisfy the needs of its citizens for manufactured goods and food stuffs available only from abroad. This study attempts to find the significance of trade between the Philippines and Pakistan in the external trade of both countries during a period of twelve years from 1972-1983; the trend and direction of trade between the two countries; the commodities and the problems faced by traders of both countries and how may these be minimized.