Trade is a powerful vehicle for peace, prosperity, and development. Unfortunately, Pakistan has not been able to reap the full benefits of trade. Years of flawed policies, political instability, insecurity, and low foreign direct investment have deprived Pakistan of sustainable economic growth. One of the major contributing factors is the deepening trade deficit, which must be addressed through a realistic and optimal trade policy. Although trade performance has remained dismal, it can be revitalized through free market access, export diversification, and comprehensive reforms. With the right approach, the countless advantages of trade will inevitably follow.

The exchange of goods and services between economic actors is called trade. In today’s globalized world, trade is an essential component of economic activity. It not only enhances a nation’s profitability but also elevates its global standing. According to the United Nations Conference on Trade and Development (UNCTAD), the total value of global trade is approximately 33 trillion US dollars. Without this vast trade network, many of the modern amenities we take for granted would not be available.

While trade can be defined in various ways, in macroeconomics—where the focus is on large-scale economic systems—it refers primarily to the system of imports and exports that drive the........

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