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OPINION Vol.1, No.1 June 2013 - National Defence University

OPINION Vol.1, No.1 June 2013 - National Defence University

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Pakistan’s revenue from import duties will rise.<br />

In India, the business elite prevail over policy-makers. Driven by their own economic<br />

interests, Indian business community would never support hostile relations with Pakistan.<br />

It is therefore quite possible that a liberalized trade policy leads to improved relations<br />

between India and Pakistan.<br />

Pakistan can benefit with access to a market of over a billion consumers. India can gain<br />

trade access to CARs.<br />

Market competitiveness.<br />

Trade with D-8 Countries. Intra-D-8 trade was US $130 billion in 2011 68 , which was 7.5 per cent of<br />

the total trade of D-8 trade bloc 69 , however the bilateral trade and investment among D-8 member<br />

countries is yet to reach its full potential. It is expected that it could reach to US $500 billion in 2018<br />

after the implementation of Preferential Trade Agreement among the member states. 70<br />

Capital Flow. Pakistan relies heavily on remittances by Pakistani Diaspora. Last year Pakistanis<br />

contributed US $ 13 billion which is only possible in a globalized environment. As regards FDI, in the<br />

year 2011, total foreign investment inside Pakistan remained only US $ 812 million. It is pertinent to<br />

mention that Pakistan has tremendous potential of FDI which was over 5 Billion US Dollars in 2009. 71<br />

Migration. Britain makes a staggering eight billion pounds in fees from international students. Ever<br />

since its inception, Pakistanis have been moving world-wide to earn a better livelihood. At present 1.984<br />

% of the total population of Pakistan has migrated to various countries. 72 Other than the remittances from<br />

these immigrants, many Pakistani expatriates are members of local parliaments and hold esteemed places<br />

in domestic politics. They act as an effective lobby to further Pakistan’s core interest and those of the<br />

Muslim community. Pakistan is gifted with tremendous natural beauty and historical sites, which can<br />

attract tourism.<br />

Burgeoning Media and IT. Pakistan has a vibrant media which is emerging as an important pillar of<br />

the state. With over 20 million internet users and over 120 million mobile phone users 73 ; adequate means<br />

are already in place for Pakistanis to reap the benefits of globalization.<br />

Recommendations<br />

The research leads one to believe that globalization as a phenomenon is here to stay. That it is<br />

not a matter of choice but a compulsion is a foregone conclusion. However, prudence should be the rule<br />

of the thumb. We must not try to run before we have learnt to walk since globalization is boon as well as<br />

bane. In a globalized world, only those nations stand chance to succeed which excel in knowledge,<br />

information and technology. Countries having strong work ethics, sound educational system, social and<br />

economic justice, political stability and the rule of law can convert the challenges of globalization into<br />

opportunities. By and large, Pakistan has benefitted from globalization but not commensurate to its<br />

potential. Much remains to be done, for which the panel offers Policy Options and certain<br />

recommendations.<br />

Policy Options. Guarding of our national identity and vital interests will remain supreme as a rider<br />

clause in any option we adopt. Two policy options are available:<br />

Option – 1 - Globalization Model as per Dynamics of Pakistan. This option will neither be a<br />

classical Neo-Realist nor a Neo-Liberal approach. Instead it is a blend of both in conformity with<br />

our peculiar geo-economic and geo-political dynamics.<br />

Option – 2 - Liberalist Approach. In this option, Pakistan will embrace globalization in all its<br />

manifestations, in true letter and spirit of the concept of globalization.<br />

Recommended Option. Having discussed the opportunities and challenges globalization offers<br />

to us, the panel recommends option-1 for Pakistan. We must see the issues from a practical<br />

perspective rather than seeing them from the spectacle of an exotic thought.<br />

Policy Parameters. To accrue greater advantages from the phenomenon of globalization, Pakistan must<br />

follow a policy of positivity and goodwill encompassing parameters of Comprehensive <strong>National</strong><br />

Security, Equality, Cooperation & Collaboration, and Interdependency & Mutual Benefits.<br />

<strong>OPINION</strong> <strong>Vol.1</strong> <strong>No.1</strong> 74 <strong>June</strong> <strong>2013</strong>

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