Pakistan has boosted trade faster than India and Bangladesh since 2000. The average MFN – Most Favored Nation rate as a term of this trade liberalization.
Year 2000 kept as a point of reference the average MFN rates of Pakistan were a lot more than they were in 2018. 25.16, 35.56 and 21.64 in 2000 respectively have observed a fall to 12.1, 17.1 and 14 Respectively. Consequently, this study implies that Pakistan have liberalized the Trade faster than India and Bangladesh in the last two decades.
In 2000 – China, Sri Lanka, Indonesia and Malaysia were hovering higher in the MFN rates than Pakistan. However, in 2018 we have observed that their rates have had a steep decline till 9.8, 9.3, 8.1 and 5.6 respectively. The rates of Pakistan, India and Bangladesh are way higher than these countries. A Study shown by PIDE – Pakistan Institute of Development Economics.
Moreover, the terms to compare in the Average MFN rates according to the products in the regional area, Pakistan is better than India and Bangladesh. However, the textile sector relishes increased protection in India and Bangladesh.
MFN Rate for machinery is comparatively lower in Pakistan than in India and Bangladesh. This is an essential part of the growth for the Industrial Sector of the country. Furthermore, Pakistan has provided several schemes for the export promotion. The tariff and the exemption of duty and taxes are fairly lower than the other two competitors of the region. Despite, the Average MFN rates being lower, slow industrial growth is observed.