GLOBALIZATION, AND ITS IMPACT ON CHANGES IN LABOUR MARKET OF PAKISTAN

Abstract

The phenomenon of globalization has created a dichotomy of perception dividing the world into plethora of apprehensions and appreciations due to the intense velocity, which the information about people, products, nature, environment, politics and economy disperses across borders, across countries and nations creating virtually one world into a global village. This study analyses the effect of the gradual and selective approach to globalization in terms of trade, wage, and employment and social progress in Pakistan. Economic performance of Pakistan since integration with the global economy can be characterized by an increase in GDP growth rates, decline in import duties, an increase in FDI during the post 1988 decade, a sharp increase in degree of openness leading to a deteriorating balance of payment situation and continued high level of poverty and employment. There is increase in wages in informal sector as well as wages of the production worker till 1990. In continuity with the same apprehensions towards globalization, it becomes pivotal to find out how Pakistan can develop a competitive and comparative advantage using the pragmatic economic strategy as the supreme nations of the world dominate because of their economics and business prowess than military muscle. "Globalization is no longer an option, it is a fact. Developing countries have either to learn to manage it far more skillfully, or simply drown in the global cross currents."