Globalization, through international trade, has facilitated the exchange of goods and services across borders. This has brought about both positive and negative consequences. On the positive side, globalization has allowed nations to benefit from specialization, where countries focus on producing goods and services they are most efficient at, leading to increased productivity and economic growth. It has also encouraged the spread of knowledge and new technologies, promoting innovation and development.
Balancing the advantages of globalization with addressing its negative consequences remains a complex challenge for governments and policymakers worldwide. It requires a thoughtful and nuanced approach to ensure that the benefits of international trade are more evenly distributed and that the concerns of various segments of society are addressed.
The governments over many years, in most countries have increasingly opened their economies to international trade, whether by the multilateral trading system, increased regional cooperation or as part of local reform programs.
According to UNCTAD’s latest Global Trade Update, the trade growth was positive for both goods and services during the first quarter of 2023. After the downturn in the second half of 2022, world merchandise trade rebounded in both vale and volume. The trade in goods went up over the first three months of 2023, by 1.9 per cent from the last quarter of 2022, adding about $100 billion.
By about $50 billion global services trade also increased, up by about 2.8 per cent as against to the previous quarter. For the second quarter of 2023, the UNCTAD now cast suggests a slowdown in global trade growth, pointing to presently downgraded world economic forecasts and factors like persistent inflation, financial vulnerabilities, the war in Ukraine and geopolitical tensions.
The viewpoint overall, for global trade in the second half of 2023 is pessimistic, as negative factors dominate the positive. Trade has allowed nations international experts recorded, to advantage from specialization and economies to produce at a more efficient scale. It has raised productivity, supported the spread of knowledge and new technologies, and enriched the range of choices available to consumers. But into the world economy deeper integration has not always proved popular, nor have the advantages of trade and globalization necessarily reached all sections of society.
Pakistan’s important trade partner
Sources recorded that Saudi Arabia in the world is one of Pakistan’s most important trading partners. The Kingdom is home to greater than 2 million Pakistani expatriates, making it the largest contributor to remittance inflows to the South Asian nation.
Statistics showed that Pakistan’s exports to Saudi Arabia grew by 31 per cent to a record of $563.47 million in the outgoing FY2023 that closed on June 30. By the sale of rice which reached at $106.68 million, the exports to the Kingdom were boosted, followed by meat and edible meat that grew from $46.8 million to $82.73 million.
Pakistan’s exports to Saudi Arabia were registered at $429.52 million in the previous year. Pakistan has attained record level of exports to the Kingdom of Saudi Arabia during the last fiscal year, FY2023, to over $563 million for the first time. It is believed the quantum of export of the Pakistani-origin goods was about $1 billion, including the goods that were exported via UAE and other countries through land routes. The growth was also attained by various trade-facilitation initiatives for the promotion of Pakistani products in the Kingdom.
For the export of halal meat with the Saudi Food and Drug Authority (SFDA) the registration of Pakistani companies was a chief step taken by the trade mission during 2020-2023. It is also said that Pakistani authorities in Saudi Arabia also contributed to the lifting of a ban on fisheries-exporting companies from Pakistan and the registration of fisheries establishments with the SFDA for exports.
The attempts to promote Pakistani mangoes in the Kingdom by online home delivery by Pakistani startup yielded optimistic consequences. Since 2020 the export of information and communication technology (ICT) goods and services grew from $19 million to $28 million. In the export growth the participation of Pakistani companies in more exhibitions like Saudi Build, Foodex, Saudi Halal Expo, LEAP and Global Health also the participation of more Pakistani companies in ICT/digital tech after LEAP event also played major role. It is also said to safeguard the trademark name of basmati rice from Pakistan the Pakistani mission was moved which was wrongly registered as ‘Kernal’ with an individual Saudi importer in 2020. The removal of a ban on hatchery eggs from Pakistan by the Saudi Ministry of Environment, Water and Agriculture (MEWA) was also one of the major achievements which led to the export growth. The Saudi market for Pakistani goods is worth greater than $1 billion. In large numbers to explore business opportunities the Pakistani exporters are coming to Saudi Arabia that would increase additional exports from Pakistan, including that of IT.
The South Asian nation during the outgoing fiscal year, imported goods worth $4.2 billion, including $2.9 billion worth of petroleum oils from the Kingdom of Saudi Arabia, as against to $5.1 billion worth of goods imported in the last year. No doubt, our Pakistan has enjoyed warm relations with Saudi Arabia.
The relations are rooted in the centuries old religious, cultural and commercial links between the two peoples. Both states over the years, have also succeeded in developing a unique synergy for mutual development. Saudi Arabia is home to the largest number of Pakistani expatriates, almost 2.0 million. A number of monuments in Pakistan bear testimony to the depth of bilateral relations with Saudi Arabia.