Faculty / School
Faculty of Business Administration (FBA)
Was this content written or created while at IBA?
Yes
Document Type
Book Chapter
Publication Date
2012
Book or Conference Proceedings Title
SBP Papers
First Page
65
Last Page
72
Publisher
State Bank of Pakistan
Place of Publication
Karachi
Keywords
SBP, State bank of Pakistan, Trade, India, Pakistan, Economic, Trade Liberalization
Abstract / Description
Pakistan and India are the two most populous and largest economies in South Asia. The current status of trade is not reflective of any remarkable progress as total volume of trade between the two countries remained at a low level during the past five years ending FY04. The liberalization of bilateral trade between the two countries would not only lend impetus to the integration of both the economies but would also be seen as a good omen by the other nations as well. With political and economic stability, India and Pakistan can expect fresh foreign investment coming into these countries. Cheaper cost of production, skilled labor, educated middle class, female literacy, booming economy, vital US and European interest in the region can change the fate of many people of the sub-continent in a span of 5/10 years’ time. There is an enormous potential for increasing trade flows between India and Pakistan. As compared to the average trade flows of $415 million during FY 2000-01 to FY 2004-05, the estimates of trade potential range from $1.85 billion to $10.0 billion. However, part of such flows would certainly be the conversion of existing trade now routed through third countries into direct India-Pakistan trade, as well as the formalization of trade flows currently smuggled across the border.
Recommended Citation
Husain, D. (2012). Implications of Liberalizing Trade and Investment with India. SBP Papers, 65-72. Retrieved from https://ir.iba.edu.pk/faculty-research-series/129