Greening the Pact: An Assessment of the MPCEPA on Environmentally Friendly Trade Practices

Abstract

The research qualitatively analyses the impact of the Malaysia-Pakistan Closer Economic Partnership Agreement (MPCEPA) on the environment. The data is collected from the primary source, MPCEPA, and the secondary sources, which include scholarly written articles. The green impact of trade enhancement, investment strategies, and the service industry is explored; the purpose is to highlight the inadequate MPCEPA effects on the environment. The results show a positive impact of the Malaysia-Pakistan Agreement on trade: exports of Pakistan's textile and agricultural goods increase, while Malaysia's palm oil exports are boosted. Pakistan benefited from the privileged market access to Malaysia, but the trade in goods and services is asymmetric, and Malaysia gains more. The ignored part of the agreement is the environmental impact of economic growth. It is found that the agreements lack the clauses in its legal framework, to protect environment. In the agreement's environmental component is still in its infancy. While economic benefits have been significant, challenges related to carbon emissions, industrial pollution, resource management, and sustainable production practices continue to persist.