"Implications of Liberalizing Trade and Investment with India" by Dr. Ishrat Husain
 

Faculty / School

Faculty of Business Administration (FBA)

Was this content written or created while at IBA?

Yes

Document Type

Book Chapter

Publication Date

2012

Author Affiliation

  • Dr. Ishrat Husain is Dean and Director of the Institute of Business Administration, Karachi.

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.

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Business Commons

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