The Impact of Global Economic Policies on Business Development: A comprehensive study on how global trade agreements and economic policies influence business development decisions

This study examines the impact of international and regional trade agreements and national economic policies on the business development of Pakistan’s textile industry. Through a qualitative analysis of stakeholder perspectives, the research identifies four key themes: the influence of trade agreements, the role of economic policies, infrastructure and workforce challenges, and the need for market diversification and financial support. Findings indicate that while agreements such as GSP+ enhance export competitiveness, their benefits are often undermined by high taxation, rising energy costs, and macroeconomic instability. Additionally, compliance with international trade regulations poses a challenge, particularly in maintaining sustainability and quality standards. The study further highlights weak industrial infrastructure and a lack of skilled labour as major impediments to growth. Stakeholders emphasize the necessity of investing in technology, automation, and skill development to remain competitive in global markets. The over-reliance on EU and US markets exposes the industry to external risks, necessitating exploration of emerging markets such as South America, Central Asia, and Russia. Furthermore, inadequate financial support and limited access to modern technology hinder business expansion and innovation. This research contributes to trade and economic policy literature by offering a stakeholder driven analysis of policy misalignments and industry constraints. It advocates for enhanced policy coordination, improved infrastructure, and targeted financial interventions to strengthen Pakistan’s textile sector. The study also proposes future research directions, including longitudinal studies and digital trade integration, to provide a more comprehensive understanding of trade policy effectiveness in industrial development.