Greener Journal of Social Sciences

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Iqbal and Anwar

Greener Journal of  Social Sciences Vol. 4 (1), pp. 037-044, January 2014

  ISSN: 2276-7800 © 2011 GJSS

Research Paper

Manuscript Number: 240913857


Opportunities and Threats for Pakistan’s Trade in Textiles and Clothing with European Union (EU27)


Muhammad Shahzad Iqbal1* and Dr. Sofia Anwar2


1Phd Scholar, Department of Economics, GC University Faisalabad.

2Head of Department, Department of Economics, GC University Faisalabad.




*Corresponding Author’s Email: shahzad.iqbal @, Shahzad.iqbal @,

Ph: 0092-300-8660601


The study is aimed at the investigation of trade implications for Pakistan in the milieu of European Union enlargement from EU15 onward. By doing so, it intends to trace out the place of Pakistan in the EU market in comparison to its competitors; EU’s major trading partners. The examination lends support to the view that - though the EU’s external trade regime is complex, regionalized, discriminatory in nature, and complicated in operation, in practice, it has not retarded trade flows between its most favourable and less favourable trading partners. The study concludes that the pattern of trade preferences EU grants does not necessarily guarantee success in the export performance of the recipients. Verily, various other demand and supply side factors have played an important role in this regard. The empirical evidences, i.e., that the less favourable ones including Pakistan have shown high up export performance as opposed to favourable ones.- are supporting this view. This carries both immense potential opportunities and serious threats for Pakistan in the years to come to cope with. The study suggested that augmented competitiveness of firms seems to be the key to success. It is truism that it is firms, not the countries that compete in the changing EU and international trading environment. This calls for the adoption of a properly designed strategy by the government and firms with a clear vision, hope, motivation and passion. So, government is to provide friendly investment/production and exporting air daring firms to compete on the internal and external porticos. And firms to create access, absorb, and adapt new technologies augmenting their competitiveness.

Keywords: International Trade, Panel analysis, Economic Growth.

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