chapter  8
17 Pages

Pakistan: Rehana Siddiqui


In Pakistan, the focus of trade policies has changed over the years, from import substitution to export expansion and trade liberalisation in recent years. A number of studies have examined the relationship between economic growth and openness but the trade-poverty nexus is examined in only a few studies. The empirical studies support the view that growth rate of GDP has been responsive to exports expansion and rise in trade-GDP ratio (see, for example, Siddiqui 2004). However, a casual analysis of indicators of tradeeconomic growth-poverty, over time, does not reveal that trade liberalisation, despite its positive impact on growth rate of GDP, has resulted in poverty reduction. Thus, it is important to study whether, in Pakistan, trade liberalisation

alone has or has not resulted in poverty reduction. This chapter focuses on the nexus of trade-growth-poverty in Pakistan. The chapter is structured as follows: after the introduction, an overview of trade liberalisation in Pakistan is given in section 2. Trends in economic growth and poverty are elaborated in section 3. Empirical results on trade-growth-poverty are analysed in section 4. The paper is concluded with some policy suggestions in section 5.