Analysis of Pakistan Trade Policies in the Context of Export Diversification

Abstract

This paper attempted to analyze Pakistan export policy towards diversification. There are five measures of export diversification which is widely used by scholars for such analysis. The computational analysis reveals that export diversification always remains the major policy goal of Pakistan's trade policies since the decade of 1970s. However, the outcome of the policy could not be successful because export diversification indexes showed no significant changes. From the year 2000 government focuses on geographical export diversification and concentrated on preferential trade agreements, which could not show good result as well. This paper therefore suggests for commodity export diversification, preferably vertical diversification for a sustainable export growth of the country.