Prospects of Globalization
Keywords:Globalization, Free Trade, Pakistan Economy
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.