Foreign policy of a state is an extension of its domestic policies. Nowhere is it truer than in the field of economic development. The quest for economic progress has been the keystone of not only our national policies, but also Pakistan’s external policy. At home the focused priority, sustained efforts and sound management has brought about an astounding economic turn-around, which has been admired internationally. After restoring the macro-economic balances Pakistan has put in place structural reforms that are streamlining the economy towards achieving a self-sustainable growth. Budget deficit has been brought down; Current Account deficit has been eliminated. Foreign exchange reserves have gone up.
Foreign Direct Investment has doubled. Exports have risen. Imports have grown. Capital markets have shattered all records. For three years running our Stock Exchange has been one of the best performing markets in the world. The index has risen. Total market capitalization has multiplied many times over in dollar terms. Despite progress Pakistan still needs economic development.
Pakistan wants to build and strengthen commercial relations with all countries. More and more, the economic dimension of relations between nations is acquiring the central role in diplomacy. It is being understood that political and economic relations augment each other. In fact one cannot truly function without the other. Pakistan is proponent of a more equitable global trading system. Pakistan feels that the rewards of globalization have so far not been shared fairly. The concept of “managed globalization” has been promoted by the developing countries for some time now. This, in Pakistan view, is only possible if the current international trading climate that favors the developed economies is drastically overhauled. The need to reverses, the net capital flow from the developing to the developed world, which forces the poor to sink deeper into the quagmire of poverty, is not only essential, but also urgent.
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