1. WTO & Its impact on
Pakistan economy
Name
Muhammad Azaz
ROLL NO.
1811

2. WHAT IS ECONOMY??

Economy is basically a social system, which is
responsible for production, exchange, distribution,
and consumption of goods and services or a nation

3. IMPORTANCE OF PAKISTAN ECONOMY
The 27th largest economy in the world with respect
to the purchasing power.
 The 48th largest in absolute dollar terms
 Pakistan has a semi-industrialized economy


4. REASON OF DECLINE
Internal political disputes
 Fast growing population
 Costly, ongoing clash's with
neighboring India
 War on Terror
 Inflation
 Results


FDI (Foreign Direct Investment )
decline approximately $8 bn to
$3.5bn for the current fiscal year

5. WTO
WORLD TRADE ORGANIZATION
The World Trade Organization
(WTO) is the only global
international organization dealing
with the rules of trade between
nations to ensure that trade flows
as smoothly, predictably and freely
as possible
 WTO agreements, negotiated and
signed by the bulk of the world’s
trading nations and approved in
their parliaments(148 member
countries ).


6. ACHIEVEMENT
Global trade in 1997 increased 14-fold as
compared to 1950
 The last half-century has witnessed an exceptional
growth in world trade; goods exports grew on
average by 6% per annum


7. MISSION STATEMENT OF WTO

The World Trade Organization — WTO — is the
international organization whose primary purpose is
to open trade for the benefit of all.
Director General (Mr. Pascal Lamy)

8. GOAL OF WTO

The ultimate goal is to help producers of goods and
services, exporters, and importers conduct their
business.

9. OBJECTIVES
Managing trade agreements
 Settling trade disputes
 Reviewing national trade policies
 Support developing countries in trade policy
 Solving Issues, through technical assistance
 Training programs
 Cooperating with other international organizations
 Ensuring full employment


10. MAJOR ACTIVITIES OF WTO
Negotiating the reduction or elimination of obstacles
to trade (import tariffs, Subsidies etc)
 Monitoring and reviewing the trade policies of the
members.
 Assisting the process of accession of some 30
countries who are not yet members of the
organization()
 Explaining to and educating the public about the
WTO


11. IMPACT OF WTO ON DEVELOPING AND
DEVELOPED COUNTRIES
WTO is dominated by the world’s most powerful
countries and trading blocs: the United States, the
European Union, Japan, Canada and Australia are
key rich countries
 In actual The problem is that the WTO does not
hold votes (if it did the rich countries would always
lose!). Instead it works by ‘passive consensus’

Like threating developing countries i-e we till cut off your
aids or stop support .

12. CRITICIZERS
The US to promote free trade only in sectors, which
benefit it.
 Free trade will give the developed countries more
access to the resources of the developing countries


13. IMPACT OF EXPORT

single country
limited consumption capacity
 limited installed production


Results

Limiting the national income

14. PAKISTAN ECONOMY
Pakistan's economy is very dependent on agriculture.
 Agriculture sector contributes 25% to GNP
 Industry contributes approximately 18% to GNP
 Retail trade account for 15%,
 and transport and communication for 10%

15. IMPACT OF WTO POLICES ON PAKISTAN

As a member it has to abide by the WTO's objective
of putting an end to the import duties which have
been reduced from maximum over 80 per cent nine
years ago to 30 per cent at present.

16. THREATS
Under AoA, (Agreement on agriculture) ,tariff on
agriculture products should be same in all member
countries.
 Tariff reduction can only benefit if both the countries
either exporting or importing are providing the same
amount of subsidies.
 However, if one country provides heavy subsidy
and the other country is not able to do so either due
to financial constraints. The result of this is very
devasting i-e cheap imports.
 On the other hand, tariffs are also a source of
revenue for the government, and reduction in tariffs
means economic deficit.


17. Interestingly, developed countries like the U.S, the
EU, and Japan are providing domestic support to
their agriculture sector, while asking developing
countries to demolish the subsidies.
 The USA, infect has recently increased its
agricultural subsidies.
 European countries, on the other hand, give a
subsidy of $2.5/day/cow; as compared to per capita
income of 75 % Africans is $2/day. More over,
subsidy on cotton provided to an American farmer
decreases the world cotton price by 4.5 %.


18. CONCLUSION
At present Pakistan maintains a fairly liberal trade
regime.
 where all quantitative restrictions on imports have
either been removed
 Requirements

Proper support and careful policies for the industry
 intelligent balancing of imports and exports is vital for
the sustainability and growth of Pakistan's economy


This will leads towards a bright future and trade
enhancement under the WTO regime

19. ANY QUESTION???