ECO603 GDB.1 Solution and Discussion
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Politics of the world has been changed with the passage of time. Today’s economic as well as political environment is related to social media, internet sale and purchase, stock exchange and exchange rate ups and downs. All these are related to each other. Pakistan is an agrarian country and its major crops are cotton, wheat, rice and sugarcane. Imports are oil and mineral fuels, tobacco optical and medical equipment, metal ores and motor vehicles while exports are food items, live animal, leather, cotton and clothes. Economy of Pakistan and balance of payment mainly depend on agricultural sector, performance of public sector, political environment and weather condition.
After reading the above facts and figure, explain logically that how does political environment affect the exports of Pakistan?
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There is an urgent need for policy makers to adopt a cautious perspective when dealing with the recent revival of protectionism. The changing policy context of global competition requires that emphasis be placed on facilitating broad-based innovation. This is in sharp contrast to the current and past industrial policies that were based on import substitution and sector-picking. This paper briefly outlines Pakistan’s experience with industrial policy over the past 6 decades, and shows how protectionist industrial and trade policy regimes are ineffective with respect to equipping Pakistan to compete globally. The paper also outlines global best practices with reference to designing an enabling industrial policy and suggests policy reforms that are appropriate in the political and global context of Pakistan. There also exist contrary views about the scope and composition of industrial policy even within the government functionaries. There is a dire need for a shared vision and deeper consensus building. Thus this paper aims to highlight the radical contrast in perspectives that exists between the current policy of the ministry of industries and a policy conducive to a prosperous Pakistan.