Trade Between India And Pakistan Can Go Upto $30 Billion
Trade Between India And Pakistan Can Go Upto $30 Billion: As per World Bank report, India and Pakistan has the potential to take the trade above $30 billion. At present over $5 billion trade is being done through third country. Trade volume through a third country is greater while direct trade between India and Pakistan stands at only $2.2bn.
Pakistan’s exports to India were $84 million in 2003 and even at their peak in 2013 at $403 million, after which they receded to $312 million in 2015. On the other hand, the imports increased rapidly in absolute terms as trade relations moved towards normalization. It increased from $184 million in 2003 to $2.18 billion in 2013. It was at $1.96 billion in 2015.
Pakistan can import items like tea, sugar, petroleum products; cotton not carded or combed cyclic hydrocarbons, insecticides, new rubber types, electrical generating sets, and electrical apparatus for telephony, motor vehicles, and parts of motor vehicles from India. As of 2016, Pakistan spends almost $6.5 billion on import of these products.
In an event by Lahore Chamber of Commerce Industry (LCCI), the Indian High Commissioner (IHC)to Pakistan, Ajay Bisaria, stressed the need to improve trade ties between the two neighboring nations. This statement will ease the rift because of the latest incidents of harassment of Pakistani diplomats in India while Pakistani officials are also currently visiting India to discuss water issues.
Issues Faced By the Traders
Traders of India and Pakistan face
- Visa issues
- Non-Tariff Barriers: India imposes higher technical barriers to trade on the imports of textiles and agricultural goods amongst other goods
- India’s score in trade restrictiveness index developed by the World Bank is higher than Pakistan’s.
- Tension at the diplomatic and security levels
Currently the relations between the two nuclear neighbors are at a low so the two sides will have to work together for a peaceful future.