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India-Pakistan trade potential stands at $ 37 billion: World Bank

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BL33D

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Islamabad: The trade potential between India and Pakistan stands at $37 billion, according to a World Bank report which said that continued political tensions and lack of normal trade relations between the two nations have cast a shadow over cooperation efforts within South Asia.

The report ‘A Glass Half Full: The Promise of Regional Trade in South Asia’, which was released on Monday, has highlighted among key factors, the long list of product restrictions in bilateral trade. India and Pakistan continue to maintain long, sensitive lists of items on which no tariff concessions are granted.

The lack of normal bilateral trade relations between the two countries affects the formation or deepening of regional value-chains in various high-value trading sectors, Dawn newspaper reported quoting the report.

Pakistan has a list of 936 items and almost 17.9% of tariff lines that apply to imports from all South Asian Free Trade Area (SAFTA) countries. India maintains a list of 25 items (0.5% of tariff lines), which includes goods such as alcohol, firearms, etc. However, it has a much longer, 64-item list, (almost 11.7% of tariff lines) for Pakistan and Sri Lanka, but which effectively applies only to Pakistan, because India applies a smaller sensitive list to Sri Lanka as part of a separate India-Sri Lanka Free Trade Agreement.

Items on the Indian sensitive list can be imported at the most-favoured-nation tariffs from any SAFTA country, including Pakistan, because India accorded Pakistan the status in 1996, soon after the accession of the two countries to the World Trade Organisation.

However, Pakistan has not granted India the most-favoured-nation’s status or non-discriminatory market access. In addition, the preferential access granted by Pakistan on 82.1% of tariff lines under SAFTA is partially blocked in the case of India because Pakistan maintains a negative list comprising 1,209 items that cannot be imported from India.

In practice, many of these items are exported from India to Pakistan through a third country, usually the United Arab Emirates. The report says another barrier to bilateral trade is the proliferation of NTMs (non-tariff measures), some of which take the form of non-tariff barriers, such as port restrictions.

Pakistan allows only 138 items to be imported from India over the Attari-Wagah land route. Furthermore, cargo trucks from either side cannot move beyond their border zones, which means that goods must be transloaded at the border, adding to the time and cost of trading.

Another factor impeding bilateral trade in goods and services, as well as FDI, is the encumbered visa regime that India and Pakistan have created for each other, which restricts the mobility of people between the two countries.

Continued political tensions and lack of normal trade relations between India and Pakistan have cast a shadow over cooperation efforts within South Asia, contributing to the lack of progress in the regional cooperation agenda of SAARC and SAFTA, the report said.

A little old news but stands true. And why Pakistan never gave MFN status to India when we had given you MFN long back. Seems unfair.
 

Imran Khan

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nhi humy nhi chayeee trade wrade :D:P now there will be only one trade the trade of blood and fire bombs and missiles the trade of tears of our enemy the trade of fear in hearts of our enemy and we will kill and remove hearts from bodies of our enemies and kiss them and then chew them
 

BL33D

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now read my updated post again:rofl:
That will only solve food security right o_Oo_O Uske baad kya karoge ?:pop::pop:

There may be $38b worth but india will take 95% of it. Not worth trading with misers.
Haha, thats a myopic view, Ind and Pak already trade a lot more but its via Dubai. And the crisis Pak is having with forex reserves would solve dramatically as India can export most of paks import. Also Indian industry could invest massively as Pakistan is a more similar market to India. Dont give such haphazard statement.
 

Nilgiri

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There may be $38b worth but india will take 95% of it. Not worth trading with misers.
If you want to capture Indian import market, then make something worth it. It's really that simple. Nothing "miser" about it....we run trade deficit with lot of countries after all.

If anything its your BD that has invested only 2 dollars per person outside its borders (50+ times less per capita than India). Now THATS miserly....or are you just that poor?
 

God Parshuram

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nhi humy nhi chayeee trade wrade :D:P now there will be only one trade the trade of blood and fire bombs and missiles the trade of tears of our enemy the trade of fear in hearts of our enemy and we will kill and remove hearts from bodies of our enemies and kiss them and then chew them
Gazawa e Hind ki taiyari chal Rahi hai kya Khan Saheb?
 

mastaan

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nhi humy nhi chayeee trade wrade :D:P now there will be only one trade the trade of blood and fire bombs and missiles the trade of tears of our enemy the trade of fear in hearts of our enemy and we will kill and remove hearts from bodies of our enemies and kiss them and then chew them
Aur woh bolte hei trolls ki breed khata ho gayi :rofl::rofl::rofl::rofl::rofl:

Abhi Troll master Zinda hei!
 

SIPRA

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Let this trade potential stand, as it is, till it gets tired. Then it may lie down to take some rest, for a while.
 
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