ISLAMABAD, Sept 29: Speakers at a seminar here on Thursday said achievement of higher growth in trade particularly in exports would lead to more employment opportunities resulting in poverty reduction in the country.

They were speaking on a draft study to develop linkages between trade, development and poverty reduction.

To probe various dimensions of this linkage, the Consumer Unity and Trust Society International has started a regional study in 15 countries of Asia, Africa and Europe with the help of DFID (UK) and the embassy of Netherlands.

The Sustainable Development Policy Institute and the National Institute of WTO and International Law are working on this project in Pakistan. The consultative dialogue was arranged to mark the launch of the study.

The participants spoke on “official” poverty line, the role of social safety nets and macro-economic policies of the country for addressing the problems of marginalized communities.

They also discussed the deteriorating rural poverty and role of various credit schemes, which if not utilized properly, may lead to another mired cycle of poverty.

Akhtar Mehmood, the author of the draft study, said higher growth in trade liberalization would lead to providing cheaper products to the masses.

He ruled out the protectionist regime which, he said, only provided monetary benefits to multinational companies at the cost of the poor and marginalized people. He said high tariffs took money from poor to rich countries, which was unjustified.

He said the government would have to take measures for controlling the high inflation which would affect the poor. He also suggested measures for improving the condition of rural economies, which constituted around 70 per cent of the total population.

He said one could only hope that South Asian countries recognized the rights of their citizens, so that they could live in dignity and freedom.

Dr Abid Qayyum Suleri of the SDPI said the debate on linkages between trade, development and poverty reduction was not new. Trade policy potentially affects poverty through its effects on economic growth and income distribution, he added.

Though it is also true that the effects of trade on income distribution have been more firmly established than its impact on growth.

He said a pro-poor growth policy had greater impact on reducing poverty and given the present trade and investment regime, an open and simple trade policy might foster some external discipline, reduce distortions on domestic markets and narrow the scope for wrong or unbalanced policies in other areas.

Mr Suleri emphasized that enhanced trade would be of not much use in our efforts to poverty reduction unless it was accompanied by reduction in inequalities of income distribution.