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Abstract / Description
In the face of massive economic challenges, a burgeoning population, energy and water shortages, and huge and growing numbers of unemployed workers, especially youth, Pakistan needs to look for ways to move itself out of the economic hole into which it has fallen. Greater trade with India offers an immediate and rich possibility of economic growth for both Pakistan and India. Recent meetings between the commerce ministers of both countries in New Delhi appear to have yielded some good intentions to increase trade from its current level of $2 billion a year to $6 billion, still well below what many scholars estimate to be the potential. Yet, the obstacles remain, in the form of rules and regulations that inhibit trade, and in the lack of private-sector initiatives that would surmount governmental foot dragging. In the end, it is the private sector—not offcial trade—that will boost incomes on both sides of the border. And the question remains: Will India and Pakistan see the advantage of opening borders as being mutually beneficial?
Keywords
India-Pakistan,Trade,Import,Export
Table of Contents
Prospects and Challenges for Increasing India-Pakistan Trade . . . . . . . . . . . . . . . 1 Textiles and Clothing. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 4 Iron and Steel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Chemicals and Pharmaceuticals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 Automobiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 Information Technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Trade Liberalization Under SAFTA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Advantages of Trade Liberalization for Pakistan . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Prospects for Economic Integration . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .8 The Ease of Doing Business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9 Recommendations for Bilateral and Regional Economic Cooperation . . . . . . . . . 10
CHARTS
Chart 1: India’s Major Export Partners 2009-2010 . . . . . . . . . . . . . . . . . .2
Chart 2: Pakistan’s Major Export Partners 2009-2010 . . . . . . . . . . . . . . . . . . . . . . 2
TABLES
Table 1: India-Pakistan Trade . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Table 2: Direction of Trade Flows from India and Pakistan. . . . . . . . . . . . . . . . . . . .4 Table 3: India’s Trade with Pakistan and the Rest of the World 2008-09. . . . . . . . 4 Table 4: Pakistan’s Trade with India and the Rest of the World 2008-09. . . . . . . . .4 Table 5: Trade within Regional Blocks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .7 Table 6: India’s Major Trading Partners 2009-10 . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Table 7: Pakistan’s Major Trading Partners 2009-10. . . . . . . . . . . . . . . . . . . . . . . 8
Publication Date
11-2011
Faculty / School
Faculty of Business Administration (FBA)
Was this content written or created while at IBA?
Yes
Rights Information
© 2011 The Atlantic Council of the United States. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means without permission in writing from the Atlantic Council, except in the case of brief quotations in news articles, critical articles, or reviews.
Recommended Citation
Husain, D. (2011). Prospects and challenges for increasing India-Pakistan trade. Retrieved from https://ir.iba.edu.pk/faculty-research-books/64
Note
Ishrat Husain is dean and director of the Institute of Business Administration, Karachi, and former governor of the State Bank of Pakistan. He served at the World Bank in various senior positions between 1979 and 1999, including as chief economist, Africa Region: chief economist, East Asia and Pacific Region; director, Central Asian Republics. He obtained a master’s degree in Development Economics from Williams College, and a doctorate in Economics from Boston University.
