Impact of globalization in Pakistan

CAUSES OF GLOBALIZATION:
The origin of globalization can be traced back till the 16th century when the West started to explore and discover for the new worlds and continents , there first multinational was born for us and the rest is recorded history.

 The process of global economic integration was committed at the call of World War II and the first Great Depression, when the leaders of Britain and the US dug with the idea of reconstructing the war-torn world regulatory system Conference in july 1944

 several developing countries for stabilization qualified for the loans from IMF and WB. The first IMF/WB Structural Adjustment Loan (SAL) was given to Turkey, in the backdrop of appropriate market oriented policies, in 1980. These programs in a nutshell were aimed at liberalization of developing countries markets.

 WTO (World Trade Organization)

 Pakistan is a mixed economy consisting of a public sector domination of major sectors of the economy, which is changing very quickly under the open market agenda of WTO making the role of government to minimum level under the globalization policies guided by World Bank and IMF.

ECONOMIC OVERVIEW OF PAKISTAN

 Economic growth remained mixed, in a

year when many other Asian countries were recording negative growth Pakistan is the only country in South Asia that has recorded a lower rate of growth in the 1990sthan in the preceding decades.

 The country clearly faces a difficult challenge in reviving its economy and in achieving a level of social standards in which it can begin to take pride

PAKISTANS EXPERIENCE WITH GLOBALIZATION

Pakistan liberalized its economy as part of the structural adjustment conditional ties of the IMF program and World Bank lending Pakistans experience with globalization between 1990 and 2002 has not been great.

 Pakistan share in the world merchandize exports has fallen from 0.16 to 0.15. Chinas share in world merchandize exports went up from 1.80 to 5.04.

Malaysia share in world merchandize exports has increased from 0.85 to 1.44.

PAKISTANS TRADE SECTOR

While the size of the trade sector relative to GDP has grown from about 28 percent in 1980 to about 31 percent in 2003 it has been subject to large year to year variations Poverty which was declining till the early 1990s started to increase thereafter till the end of the decade

Pakistans trade sector did not grow significantly during the 1990s despite the liberalization because of narrow range of export markets and export products

 modest short-term demand

responsiveness for major Pakistan export categories

small foreign direct investment in tradable sectors

 anti-export bias in the trade policies of Pakistan

inadequate infrastructure in certain potential growth sectors

 absence of trade risk mitigation structure to support the entry of new exportes

inadequate development of nontraditional markets