Prospects of Globalization
Muhammad Mahmud
Madeha Almas
Abstract
Modern world has shrunk into a global village. The
ever-expanding and multifarious links in communication,
transportation, trade, services and myriad of other
factors have rendered the world a single market. The
trend has, no doubt benefited the people all around, but
it entails the inevitable pros and cons as well.
Globalization and one of its premium ingredients i.e.
Free Trade has inter alia proved incremental in raising
per capita income as per the predictions of the
international trade theorists. Countries with open trade
policies also have superior labour rights, and labour
rights improve over time in countries that adopt open
trade policies thereby signaling general raise in the
purchasing power of the people. Pakistan's economy is
still very primitive and is dependent on agriculture.
The sector contributes 25% to GNP but employs nearly 50%
of the labour force. Industry contributes approximately
18% to GNP and services about 50%, of which wholesale
and retail trade account for 15%, and transport and
communication for 10%. As a result of the importance of
the agricultural sector, climatic conditions and water
resources have a significant impact on the yearly
economic performance. Over the period 2000 to 2003, GNP
growth has increased from an average of 3% per annum to
nearly 5% in fiscal year 2003. Pakistani economy has
really to take off, and for that all the hurdles in the
way of industrialization and investment are to be
removed. Not only step are to be taken to make Pakistan
more attractive destination to the foreign investors,
but also providing the much needed subsidies and
incentives to the local investors and the industrialists
to enable them to survive and compete in the ‘Brave New
World’.
JEL. Classification: O11; O19; F01; F02;
Keywords: Globalization; Free Trade; Pakistan Economy;
