Master of Science in Economics

Faculty / School

Faculty of Business Administration (FBA)


Department of Economics

Date of Submission



Dr. Naved Ahmed, Institute of Business Administration, Karachi

Project Type

MSECO Research Project

Access Type

Restricted Access


The issue of trade liberalization has always remained at the center of India-Pakistan bilateral agendas. Various ex-ante evaluations have been carried out to find out welfare effects of such liberalization(s). Some previously conducted studies involving CGE modeling have revealed that both countries may gain due to tariff liberalization. This study attempts to further investigate the notion that there lie substantial gains for both countries due to relaxing the tariff restrictions. Additionally, this study assumes one-way tariff reductions i.e. by the Indian side to Pakistani agricultural exports. Furthermore, the study is conducted using the standard GTAP model and database version 6; two simulations have been carried out at 10% and 20% tariff cuts. From the simulations it was revealed that terms of trade effect for Pakistan would increase significantly if such a policy is materialized; besides that these tariff reductions would result in increased private consumption, investment, and exports of Pakistan.


xi, 32

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