Author Affiliation

Governor, State Bank of Pakistan

Document Type

Article

Source Publication

Mahbub ul Haq Human Development Review

Keywords

Globalization, Poverty Reduction, Pakistan Economy

Disciplines

Business | Economics

Abstract

Although globalization draws much criticism from civil society, it needs to be noted that it is an essential ingredient of economic development. Several developing countries in Asia and Latin America have benefited the most from globalization and thus improved the welfare of the poor. Acknowledging the benefits of globalization, Pakistan has also opened up its economy for foreign investment and trade in the 1990s. Evidence suggests that the country has not benefited much from growing globalization, financial integration and the technological revolution of the 1990s. Receipts from Pakistan's exports have remained stagnant and FDI flows have not increased significantly. The imperatives of globalization have shifted the course from reliance on foreign aid and international financial institutions to reliance on international trade, foreign direct investment, technology and labour flows. The policies in Pakistan need to be reformed as well as redesigned for deriving maximum benefits from globalization.

Note

An earlier version of this paper was presented at the Second Mahbub ul Haq Memorial Seminar held in Islamabad on July 15, 2000. IH0502

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