Describe the importance of foreign trade in the development

Describe the importance of foreign trade in the development of Pakistan. Also suggest some export promotion measures.

Solution

Pakistan is a developing country with a significant portion of its population living in poverty. Trade development can help Pakistan fuel economic growth. Trade development would help Pakistan export more, manufacture more and achieve an export-driven growth. Therefore, trade development can create more jobs in Pakistan, increase income, and help the country achieve a higher economic growth rate.

The following export development measures can be suggested for Pakistan:

1) Training workers and created a trained workforce to fuel manufacturing

2) Providing subsidy/tax incentives, etc. to promote manufacturing and export

3) Developing institutes like export promotion councils to boost export

4) Building infrastructure such as special economic zones, technology parks, etc. to promote exports