Brexit

Presented By
M. Ahsan Akram
Syed Aqeel Tassadaq

Presented To
Ms Kishwar Munir

Contents

Introduction
Referendum
Reasons
PROS & CONS
Trade
Investement
Jobs
Regulations
Securitys
Global and local Impacts

INTRODUCTION
1.

2.

3.
4.

Withdrawal of the United Kingdom (UK) from the

European Union (EU), often shortened to Brexit
is a political aim of some political parties,
advocacy groups, and individuals in the United
Kingdom.
In 1975 a referendum was held on the country's
membership of the European Economic
Community (EEC), a precursor to the EU.
The outcome of the vote was that the country
continued to be a member of the EEC.
More recently the European Union Referendum
Act 2015 has been passed to allow for a
referendum on the country's membership of the
EU, with a vote to be held on 23 June 2016.

2016 REFERENDUM

In 2012, British Prime Minister David

Cameron rejected calls for a
referendum on the UK's EU
membership, but suggested the
possibility of a future referendum "to
ensure the UK's position within an
evolving EU has 'the full-hearted
support of the British people'".

2016 REFERENDUM
In

a speech to the UK House of Commons on

22 February 2016 Prime Minister Cameron
set out the legal framework for withdrawal
from the European Union in circumstances
where there was a referendum majority vote
to leave, citing Article 50 of the Lisbon Treaty.

Prime

Minister Cameron spoke of an

intention to trigger the Article 50 process
immediately following a leave vote and of
the 'two-year time period to negotiate the
arrangements for exit'.

BREXIT REASONS

REASONS FOR BRITISH EXIT

FROM THE EUROPEAN UNION
1.
2.
3.
4.

British wants reforms in European

Union
Link between immigration and EU
membership
The British press is far more
Eurosceptic now than it was in 1975.
The relative health of the UK economy

PROS & CONS FOR

BRITAIN FROM EXITING EU

Perhaps the greatest uncertainty

associated with leaving the EU is that
no country has ever done it before, so
no one can predict the exact result.

TRADE

One of the biggest advantages of the EU

is free trade between member nations,
making it easier and cheaper for British
companies to export their goods to
Europe.
The UK also risks losing some of its
negotiation power internationally by
leaving the trading bloc, but it would be
free to establish trade agreements with
non-EU countries.

INVESTMENTS

The general view is that inward

investment could slow in the lead up to
the vote due to the uncertainty of the
outcome and its consequences.
In this event, the UK could be seen as a
safe haven from those risks, attracting
investors, boosting the pound and
reducing the risk that Scotland would
"leave the relative safety of the UK for
an increasingly uncertain EU".

JOBS

Free movement of people across the EU opens

up job opportunities for UK workers willing to
travel and makes it relatively easy for UK
companies to employ workers from other EU
countries.

Limiting this freedom would deter the

"brightest and the best" of the continent from
coming to Britain, create complex new
immigration controls and reduce the pool of
candidates employers can choose from.

REGULATIONS
Eurosceptics argue that the vast majority
of small and medium sized firms do not
trade with the EU but are restricted by a
huge regulatory burden imposed from
abroad.

However, others warn that millions of

jobs could be lost if global
manufacturers, such as car makers,
move to lower-cost EU countries, while
British farmers would lose billions in EU
subsidies.

INFLUENCE
Britain may lose some of its military
influence many believe that America
would consider Britain to be a less useful
ally if it was detached from Europe.
Britain would also be able to claim back
its territorial fishing waters, scrap caps
on limits to the number of hours people
can work per week, free itself from the
EU's renewable energy drive and create a
freer economic market

SECURITY

EU is an "increasingly important pillar

of our security", especially at a time of
instability in the Middle East and in the
face of "resurgent Russian nationalism
and aggression".
Leaving the "door open" to terrorist
attacks by remaining in the European
Union.

Pakistan On Brexit

Brexit impact on Pakistan

The UKs vote to leave the EU will have a

relatively small impact on Pakistans
economy

Yet, the immediate aftermath of the UKs

decision to leave the EU, Pakistans stock
markets fell by over 1400 points
The UK additionally is the source of
almost20percentof total remittances into
Pakistan

Brexit Impact On Pakistan

So far, both countries enjoy favorable

bilateral relations and there is a good
chance that Pakistan will be able to
extract a promising trade agreement
with a post-EU UK. However, during
this transition period, both Pakistans
businesses as well as the government
will face challenges as the picture of
UK and the EU remains blurry

Pakistan for EU

The EU is the mostimportanttrading

bloc for Pakistan, accounting for 21.2
percent of Pakistans total exports
Pakistan was awarded the Generalized
System of Preferences Plus (GSP), a
preferentialtariff system status, by the
EU in 2013. As a result of the GSP Plus,
Pakistans exports to the EU increased
from $6.21 billion (2013) to $7.54 billion
(2014)

Global Impact of Brexit

Brexit will undermine several pending trade

deals
Brexit is of particular strategic concern to
the US
Geopolitical impacts in the Middle East and
North Africa are also likely to be muted
The Brexit shock increases the likelihood of
a global economic downturn.
The Brexit shock increases the likelihood of
an emerging market crisis.

Conclusion