According to news reports, ministers from top 20 economies of the world have decided to work in coordination to boost sluggish global trade, fearing that anti-dumping policies adopted by many governments have come as hurdle in the global economic recovery. The G20 is a group of 19 individual countries, including China, France, Germany and India along with the European Union. Some nations are part of the group not due to their economic development but huge area and population such as India and Brazil. According to economists, the global economy faces risks and vulnerabilities and the current pace of global recovery is uneven and falls short of strong, sustainable and balanced growth. Trade is the engine of growth in modern economy and Saudi Arabia is the example where industry is overshadowed by huge annual trade. The country’s trade is linked with annual pilgrimage and frequent visits of the holy sites by devotees from all over the world.
Turkish economy is another amalgamation of trade and industry where millions of Russians and others from the rest of world visit various attractions in the country. It ultimately boosts trade and props up the economy. The G20 nations account for 85 percent of the global trade, but the ministers were critical of protectionism which has been rising since 2009, affecting trade in goods and services. Restrictions affect a host of sectors, including industries, cargo services, sales and production of automobile, trade of electronics goods and production of raw materials for agricultural sector. The ministers have decided to discourage protectionism and new protective measures until 2018. The World Trade Organisation projected the global trade growth at 2.8 percent in 2016. The group expects introduction of laws by the member states to liberalize and improve global trade and neutralize the effects of global recession. There are lessons for the policymakers of Pakistan to keep themselves abreast of the modern trends in trade and investment.
The United States and European Union are already wary of China’s production overcapacity in steel and seek global cooperation to handle the challenges. Pakistan has lot of products to offer for exports, but potentials of industrial sector could not be fully utilized. As the world is heading toward global warming, Pakistani electric fans and other items can find good markets in African and European nations. The country has the best tourist attractions and can attract millions of visitors from across the globe if prudent tourist policies are adopted and protection is provided to the visitors. More visitors means more trade with partner countries. There is also need to enhance tourism with the SAARC countries.
