Foreign Economic Policies of Pakistan in Contemporary Context

Abstract

Since its independence, Pakistan has been lacking in sustainable economic growth. Foreign nations and International donor organizations are using Pakistan as a tool to get their vested interests. Their conditional economic assistances have badly affected our economic growth. The policies for economic development are adopted for shorter intervals. They are only resulting in a cosmetic change in our economy. So, Pakistan could not prosper on strong basis. The fruits of development are restricted to a certain class and public has been suffering from various social and economic issues. An Islamic State may borrow debt from non-Muslim countries. Nevertheless, Islam strictly prohibits interest based debt, conditional debt and economic assistances. Holy Prophet (SAW) and his four righteous caliphs designed and implemented their economic policies in such a way that all classes and regions of the state enjoyed the benefits of economic development. In this way, the period of Hazrat Umer (R.A) may be called the „best model of a welfare state‟. As a result of in the wake of provision of economic rights to every region of the Islamic state; there was also a political stability in the eras of Hazrat Umar (R.A) and Hazrat Umar bin Abdul Aziz (R.A). The purpose of this research paper is to focus the formulation and implementation of economic policy which will enable Pakistan get rid of foreign reliance and influence. Pakistan should develop domestic resources and boost Foreign Direct Investment (FDI). This research paper followed descriptive and analytical methods.