“Trade benefits all!” a very well-known phenomenon in the field of economic study. The exchange of goods and services is possible today because of globalization. Globalization has integrated the economic systems where economic relations between all types of countries can be built either they are developed or developed countries. The picture seems appealing that through importing and exporting of goods and services countries can raise economic growth.
In the context of Pakistan, globalization has a great influence on its economy. The positive side of the global impact on the economy is that it has opened various opportunity gates for the economic well-being of the nation. From job creation to increasing income, foreign reserve enhancement to foreign direct investment, globalization has benefited Pakistan. Among all the developing countries, Pakistan receives a sizeable amount of remittances from foreign workers. This has a great contribution to the Gross Domestic Product. Due to the impact of globalization, Pakistan has liberalized its economy and prominent changes can be seen since the 1980s. Competition in the global market requires such changes and Pakistan has undergone such changes but challenges are still there.
Besides the benefits, there are also shortcomings of globalization. Being a developing country, Pakistan is facing horrible issues of trade deficits and debt that is pushing the economy backward. Globalization encourages foreign investment but it also damages the well-being of the domestic industries.