Trade and Globalization Opportunities and Challenges for Pakistan Economy.

Abstract

Globalization is a term that has several meaning and connotations. Globalization is connected to every aspect of life, be it economic, cultural, social or even political. Pakistan is one of the blessed countries with tones of natural resources required by humans. Textile and agriculture are one of the biggest exports of Pakistan. Other than that Pakistan is rich in minerals and they are also among top 10 exports of Pakistan. Even though Pakistan’s global trade improved in the late 20th century, it is still struggling to stand on its feet and stabilize the economy. Despite the fact that Pakistan's economy appeared to be thriving, global trends devalued its industrial base, categorized its exports as conventional, and raised entry obstacles for dynamic businesses. To encourage investment-led growth, the government must maintain the momentum with a strong policy push. If Pakistan wishes to reap the benefits of globalization, it must implement structural changes and policies in the areas of trade liberalization, imports, exports, reducing inflation and bringing FDI at the macro level. Investigation in study mainly focuses on relationship between GDP, GDPPC, Imports/ Exports, FDI and Inflation. Secondary sources (website of World Bank, Economic Survey of Pakistan and research articles) are used for data collection regarding dependent and independent variables for a period of 20 years (2000-2020). Collected data is then examined through statistical tools such as correlation and regression by using Eviews software.