Impact Of Trade Liberalization And South Asian Free Trade Agreement (SAFTA) On Textile And Rice Export on Pakistan’s Economy

Faiz Muhammad Shaikh, Nanik Ram, Anwar Ali Shah G. Syed and Abdul Sattar Shah
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Faiz Muhammad Shaikh: SZABAC-Dokri-Larkana-Sindh-Pakistan
Nanik Ram: University of Sindh-Jamshoro
Anwar Ali Shah G. Syed: University of Sindh-Jamshoro
Abdul Sattar Shah: University of Sindh-Jamshoro

Romanian Statistical Review Supplement, 2015, vol. 63, issue 8, 74-83

Abstract: This research examine the impact of Trade liberalization and SAFTA on Textile and rice export on Pakistan’s Economy by using Computable general Equilibrium model. Data were collected from 50 textile mills and 50 Rice exporters buy using Structural questionnaire and data were collected from various secondary sources Export Promotion of Pakistan, TDP, Textile annual reports and Rice export reports. GTAP model was used for the analysis of the data. It was revealed that South Asian free trade agreement has positive impact on the Textile and rice export sectors trading with India. It was further revealed that Pakistani basmati Rice exported through illegal channels to India and they are exporting with a Brand name of Taj Mahal. The findings of this research Accordingly, the results suggest that a reduction of import tariffs to 15 percent will increase Sri Lanka’s welfare and terms-of-trade as well. Although one might expect that the reduction of import tariffs would increase the domestic output and therefore increase export sales, this policy reform would adversely affect Pakistan’s domestic output in most of the sectors because of foreign competition. A similar impact can be seen in export of Textile and Rice export.

Keywords: Trade Liberalization; SAFTA; Rice; and Textile; Pakistan (search for similar items in EconPapers)
Date: 2015
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