British’s exit on 31st January from the European union has marked a new impression on European history, the notion was initiated after the referendum which resulted in 58 percent of the population voting to leave the EU which was economic and political union formed between 28 European countries. The union was to allow free trade and free movement of people among the European nations .UK joined EU in 1973 which was then known as European Economic community and became the first to exit it in 2019.Although UK has left the EU but will remain in transitional phase for one year during which new trade deals will be negotiated, other matters like law enforcement, data sharing, aviation standards and safety , fishing waters, medical and licensing and electrical supplies are going to be settled. These 11 months are going to reshape politics in Europe and UK-EU relationship. As for now UK would try to take the Norway option which is the access to single European market without being in the Union, which is a the world’s most advance free trade area with tariffs not only being eliminated but also non-tariff barriers are aligned through national health, safety and environmental regulations and standards
“UK could loose Scotland which might join EU ”
“Constrains on immigration could affect UK labour force”
“Cost of traveling and communication could be on rise”
Now the world stands in a predicament as to how this event is going to impact Europe and rest of the global states that are coming to the center stage.UK administration and majority of UK celebrated the event calling it as the way forward to economic growth, as Bori Johnson UK prime minister said ‘It’s not the end but way forward.’ The Brexit party leader Nigel Farage said this is the greatest moment in the modern history of great nation.
Despite celebrations, Brexit has come under heavy skepticism, it is not seen as a venture to economic growth rather what is going to hold it back. The Rand corporation has reported that UK will suffer 4.9% drop in GDP over next ten years operating under WTO rules and regulation because of the exit. According to one study, the referendum result had pushed up UK inflation by 1.7 percentage points in 2017.According to university of Exeter and Chatham research house there’s going to be considerable benefits for UK to be integrated in EU electricity market. It is also believed that Brexit will increase regional economic inequalities and already struggling areas will be affected most. With Brexit, the EU would lose its second-largest economy, the country with the third-largest population and “the financial capital of the world”, as the German newspaper Münchner Merkur put it.] Furthermore, the EU would lose its second-largest net contributor to the EU budget.
Academic sector in UK is tremendously affected, Ken Mayhew, Emeritus Professor of Education and Economic Performance at Oxford University, shed light on how the Brexit is affecting education in the UK, “loss of research funding from EU sources; loss of students from other EU member states; the impact on the ability of the sector to hire academic staff from EU member states; and the impact on the ability of UK students to study abroad.”
Implications for Pakistan are, Foreign Minister Shah Mehmood, expressed that post-Brexit would open new opportunities and trade between Pakistan and United Kingdom. Further, it is expressed that bilateral cooperation between the countries would bring development and prosperity towards the both nations. Pakistan a big exporter of rice and textile to EU, might come across increase in export as there’s a possibility of increased tariffs from EU on milled rice from UK. Economic uncertainty is hovering above Pakistan and UK but UK has assured Pakistan of getting same level of access as it is receiving through GSP.