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

Author

Listed:
  • 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)

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.

Suggested Citation

  • Faiz Muhammad Shaikh & Nanik Ram & Anwar Ali Shah G. Syed & Abdul Sattar Shah, 2015. "Impact Of Trade Liberalization And South Asian Free Trade Agreement (SAFTA) On Textile And Rice Export on Pakistan’s Economy," Romanian Statistical Review Supplement, Romanian Statistical Review, vol. 63(8), pages 74-83, August.
    • Handle: RePEc:rsr:supplm:v:63:y:2015:i:8:p:74-83
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    References listed on IDEAS

    as
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    3. Baysan, Tercan & Panagariya, Arvind & Pitigala, Nihal, 2006. "Preferential trading in South Asia," Policy Research Working Paper Series 3813, The World Bank.
    4. Sachin Chaturvedi, 2007. "Trade Facilitation Measures in South Asian FTAs: An Overview of Initiatives and Policy Approaches," Working Papers 2807, Asia-Pacific Research and Training Network on Trade (ARTNeT), an initiative of UNESCAP and IDRC, Canada..
    5. Kamal Raj Dhungel, 2008. "Regional Energy Trade in South Asia," South Asia Economic Journal, Institute of Policy Studies of Sri Lanka, vol. 9(1), pages 173-193, June.
    6. Dwarika Dhungel, 2004. "South Asian Association for Regional Co-operation (SAARC): Prospects for Development," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 43(4), pages 933-941.
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    Cited by:

    1. Rasa, Mohammad Mirwais, 2022. "Dynamic of Trade Specialization and Performance of SAFTA: A Case Study of Afghanistan," MPRA Paper 122505, University Library of Munich, Germany, revised 25 Oct 2024.

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