Pakistan and the World Trade Organization: Challenges and Opportunities in Global Trade

Abstract

This article explores Pakistan's potential and challenges as a World Trade Organization (WTO) member. The study, which is based on a qualitative analysis of recent academic literature, WTO reports, and official policy papers, concludes that WTO integration has affected Pakistan's trade performance between 1995 and 2025. The results show that Pakistan has benefited from stable trade rules, expanded market access, and incremental improvements in customs modernization under the Trade Facilitation Agreement. However, structural problems such a dependence on low-value textile exports, a lack of diversification, persistent trade deficits, and subpar performance in the automobile and agricultural industries have limited overall improvements. According to the research, WTO compliance is still limited by political uncertainty, governance limitations, and a lack of institutional capacity, despite the fact that policy alignment and technology developments have improved efficiency. In order to turn WTO participation into long-term growth, the study argues that Pakistan must adopt a balanced strategy that includes export diversification, industrial upgrading, agricultural modernization, and a robust competition policy. Pakistan can achieve long-term competitiveness and economic resilience by strengthening its internal institutions and aligning sectoral policies with international standards, thereby better leveraging WTO frameworks.

Keywords: Pakistan, WTO, Trade Liberalization, Trade Facilitation, Economic Growth, Competition Policy