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Since 1776, Adam Smith’s theory of absolute advantage has remained central to modern economic thought on international trade. Over time, however, its universal validity has been increasingly contested due to recurring trade imbalances, asymmetrical distribution of trade gains across nations, and instances…
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This Policy Brief explores the implications of a premature trade liberalisation in Pakistan. It highlights that Pakistan’s economy faces recurring balance of payments crises, foreign exchange shortages, limited export diversification, and weak domestic demand. Collectively, these structural vulnerabilities pose a significant risk…
