IMPACT OF SAFTA ON TEXTILE EXPORT ON ECONOMY OF PAKISTAN BY USING COMPUTABLE GENERAL EQUILIBIUM MODEL (CGE)

Abstract

This research investigates the Impact of PAK-INDIA Textile trade on Economy of Pakistan. Data were collected from GTAP-7 database. Data were collected from 70 Textile exporters by using simple random technique and data were analyzed by using GEM-software. Different simulation run on GTAP-7 database and various tariff rates appliedThe first scenario is when normal trading relation with India will be restored; it means that both countries will give the MFN (Most Favored Nations) status to each other. In the second scenario, the SAFTA will be operative and there will be free trade between India and Pakistan and both countries will remove all tariffs and custom duties from each others imports. The Global trade analysis GTAP model is used to analyze the possible impact of SAFTA on Pakistan in a multi country, multi sector applied General equilibrium frame work. Results based on this research reveal that on SAFTA, grounds, here will be net export benefits in Pakistans economy.