CHALLENGES FACING NIGERIA-PAKISTAN TRADE RELATIONS AND THE MEASURES FOR A FAVOURABLE BALANCE OF TRADE

Abstract

The government has made effort to deregulate and liberalize Nigerian trade policies in line with Nigeria’s commitment to various bilateral, regional and multilateral agreements. In Pakistan the improvement in the balance of trade payments had resulted from monetary and commercial policies adopted by the government while devaluation stimulated exports. Despite the gradual improvements in general macroeconomic conditions, the government faces the challenge of significant deficits, which is undermining private sector investments and the country’s growth prospects. The study examines challenges facing Nigeria - Pakistan trade relations and the measures to have a favourable balance of trade. This study is built on the Public Choice Theory. Both primary and secondary methods were utilized. The primary data were sourced through the instrumentalities of questionnaire and interview while secondary data were elicited from library and official (government) sources. In this regard, books, journals, dailies and periodicals, internet materials, as well as relevant official records were explored with a view to eliciting useful information. The study revealed that weak manufacturing and increasing rate of incidence of poverty further impeded economic progress in the country. Evidence of corruption in the economy dealt a major blow to economic development in Nigeria. Apart from corrupt leaders taking large sum of hard currency overseas, depleting resources to run the country, foreign investment into the country stagnated due to macroeconomic instability and the spite of corruption in the country. These equally serve as the major challenges facing Nigeria and Pakistan trade relations and economic development of Nigeria. It is recommended that there is the need to stimulate the level of investment in the country by providing a good investment climate for both domestic and foreign investors. The investment climate would be conducive for private sectors if there are adequate basic infrastructures such as stable electricity supply, good transport network. In addition, the issue of life and property security needs to handle with appropriate government measures devoid of corrupt practices.