Globalization and Pakistan’s Economy

Abstract

The International Monetary Fund (IMF), World Bank (WB) and US Treasury view globalization of economies as a mathematical and scientific problem and not as a sociocultural phenomenon. To these institutions it is monetarist economics that should govern economic globalization.This study analyzes Pakistan’s economy in the context of globalization by using the yardsticks of trade in general and Foreign Direct Investment (FDI) in particular. The inferences drawn are further reinforced by looking at stock market, external debt and liabilities (EDL), poverty, unemployment, inflation etc. Globalization is leading to growth in China but for South Asia, South East Asia and for Africa, it is perpetuation of poverty, hunger, disease and inequality. Revision of Millennium Development Goals (MDG) is a clear indication of that. Apart from successes in some areas, globalization has failed to bring positive change in the lives of millions of Pakistanis living below poverty line. It has rather added to their insecurities and vulnerabilities.