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05/04/ · Before Pakistan and India cut ties in August , their two-way trade amounted to a negligible $2 billion. The book includes familiar themes of India-Pakistan bilateral trade in goods and services, providing new insights into the potential for trade and the challenges involved in realizing it. The respective chapters examine the current trade trends and identify the possible sectors for bilateral FDI flows between the two countries, which could help forge deeper economic ties between them. 11/06/ · India desires normal relations with all neighbours including Pakistan: MEA 24 Jun, , PM IST. To a question on Pakistan foreign minister Shah Mahmood Qureshi’s comments on New Delhi’s role in Afghanistan, Bagchi said India brought electricity and built dams, schools and healthcare infrastructure in that bundestagger.deted Reading Time: 4 mins. 09/12/ · The auto sector in Pakistan has been a persistent opponent of trade liberalisation in the country. This has entailed losses to consumers in terms of higher prices, low safety and quality standards, and lack of innovation in this sector. The deletion programme, which was to result in indigenization of final output, has also failed to deliver Cited by: 1.
ISLAMABAD – Pakistan removed a nearly two-year old ban on the import of cotton and sugar from India Wednesday amid a gradual thawing of relations between the two nuclear-armed rival neighbors. Finance Minister Hamad Azhar told reporters in Islamabad that his government has allowed importers to urgently procure cotton and , tons of white sugar from Indian suppliers to keep soaring domestic prices under control. The Himalayan region is split between India and Pakistan.
Both claim all of Kashmir and have fought two wars over it since the two countries gained independence from Britain in The exchange of goodwill messages and resumption of limited trade come a month after Indian and Pakistani military commanders announced unexpectedly that they were immediately halting hostilities along their de facto Kashmir frontier to reinstate a cease-fire there.
The flurry of peace gestures, say analysts, visibly eased tensions and reduced rhetoric from both India and Pakistan. It is widely perceived that whenever Pakistani and Indian political leadership have moved toward better relations in the past, military institutions on both sides allegedly scuttled such moves. Pakistani military chief Gen.
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A Chinese scholar studying China-Pakistan relations pointed out that there are obstacles for Pakistan in realizing this ambitious trade target. But such a scenario is not entirely impossible. Pakistan has to increase its purchasing power and improve standard for export goods to meet international standards. India has a large market, given its population of nearly 1. India also has a large amount of raw materials that can be exported to China while Pakistan has less of such resources, so it might be tough for Pakistan to overtake India in eight to ten years unless the bilateral trade relationship between China and India continues worsening, said Zhou.
However, there are meaningful changes taking place. At the same time, the relationship between China and Pakistan has become stronger and investment has been increasing. There has been a 34 percent increase in exports from Pakistan to China year-to-date, thanks to the bilateral free trade agreement, according to Zaman. Experts also noted that Pakistan has its own advantage in that the CPEC has provided improved infrastructure for the country, and paved the way for its industrialization process.
That means Pakistan will have more demand for imports and more goods to export to China in the coming decade. The construction of a string of industrial parks will also help Pakistan to improve the quality of its exports, experts noted. Some of the potential items Pakistan could export to China include copper, for which there is great demand in China, as well as cotton, sugar and textile products, according to Zaman and Zhou.
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Dr Kamal Monnoo attended an Indian webinar that revolved around the latest study prepared by CRRID outlining the loss of trade between Pakistan and India, and the need to restore trade through the corridor of Wagah-Attari as a priority. The paper argues that the stalling of trade between Pakistan and India since August , is adversely affecting the local population on both sides of the border, as they have lost work and jobs, in the process escalating poverty.
It explains that the average annual trade between India and Pakistan during and was to the tune of IRS lakh. This trade came to a grinding halt after the imposition of per cent custom duty by India on all imports from Pakistan with effect from 16 February It came to a complete halt on 9 August when Pakistan imposed a trade embargo on its trade with India. Read More: Belgium keen to expand trade, investment in Pakistan: Bronchain.
Significantly, India has been enjoying high favorable balance of trade IRS lakh, average annual during and , which has been lost due to trade embargo. The average annual trade of India with Pakistan through Wagah-Attari land route ICP Attari during and was to the tune of Indian IRS lakh. This comes out to be 25 per cent of their total mutual trade. The share of imports varies from Rail and road are the two modes of transporting the goods through this route.
However, road is the predominant mode of trade.
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Analysis of India-Pakistan relations has been often dominated by security issues with comparatively less attention given to the untapped trade opportunities between the two countries. However, decades-old animosity and mistrust have contributed to regular setbacks and significant barriers to normalizing trade relations.
Informal trade between the two countries also takes place through smuggling via land borders or third countries, such as Thailand, the United Arab Emirates, and Singapore. Informal trade between the two countries further increases when formal trade is suspended. While there have been efforts by prior Indian and Pakistani governments and regional organizations such as the South Asian Association for Regional Cooperation SAARC to normalize trade relations, any escalation in political or security tensions puts any warming of trade relations at risk.
Although SAARC was established in on the model of European Union and meant to facilitate regional cooperation, enhance trade, and encourage people-to-people contact, continued tensions between India and Pakistan and their narrow political interests have hindered any substantial regional cooperation. Multiple past SAARC summits have been held hostage to regional tensions, with the last summit being held over five years ago in Nepal in Outside of SAARC, previous Indian and Pakistani governments have also tried to take steps towards normalizing bilateral trade relations.
However, suspending or restricting trade has often been one of the first courses of action in the event of escalating tensions from either a terrorist attack in India or mobilization of forces on the Line of Control. Consumers in Pakistan have felt the impact of the most recent trade suspension, for instance through rising vegetable costs with the price of tomatoes increasing by nearly 60 percent.
Obstacles to India and Pakistan trade consist of both tariff and non-tariff barriers including, but not limited to, strict quality standards, sensitive lists goods on which no tariff concessions are granted , lengthy procedures and waiting periods at the border, strict visa policies, and lack of proper infrastructure such as roads, dry ports and rail cargo stations to facilitate trade. These factors combined increase both the absolute and relative costs of trade.
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The basic problem between India and Pakistan is the excessive verbosity displayed even when a small step is taken either to normalise the relations or to curtail them. This is exactly what happened when Pakistan earlier decided to allow the imports of Indian Sugar, Cotton and cotton yarn through land and sea borders after these were suspended in due to the bilateral relationship hitting the bottom. But days later the decision of the ECC, which may not have decided without PM Imran Khan approving the import deal, was overturned in the Cabinet meeting, which he himself presided over.
It is evident that while the earlier decision was taken on the ground of economic necessity the latter followed as an afterthought since it seemed to have given an imaginary PR edge to the arch-rival India. This time the initiative was called off until India rescinds its Art abrogation of That ship has sailed. Well that’s not happening so we shall continue to witness the „Kaikeyi in Kopgrah “ like attitude and the hardliners on both sides will again have the last laugh and the relationship could remain accident prone as in the past.
While there has been a lot of informed and uninformed media commentary in India and Pakistan and elsewhere on this „flip-flop‘ by PM Imran Khan’s government Indian spokesman Arindam Bagchi in his maiden press briefing smartly waived off the question by stating that “ we are not the right party you should be addressing your question to „. For India it was good to have but not needed to have. Optics could have worked as a CBM.
A study conducted by Afaq Hussain and Nikita Singla „Unilateral Decisions Bilateral Losses“ has elaborated on the loss of opportunity cost on account of LoC Trade suspension, MFN withdrawal and duty hikes and airspace closure due to the tense state of affairs between Delhi and Islamabad. It states that Indo-Pak cross border trade during amounted to over Rs Crores and it generated more than new jobs on both sides in the border areas that often witness indiscriminate shelling, clearly confirming the peace dividends.
It is a known fact that while gypsum and cement and rock salt provide an edge to Pakistan in the sugar and cotton yarn and pharmaceuticals India has a definite edge and can meet Islamabad’s requirements easily and competitively.
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On August 5, , the Indian government stripped the special status its part of Kashmir had long held under the Indian Constitution, a move Pakistan said was in contravention of United Nations Security Council resolutions on the decades-long dispute. The decision to import cotton and sugar has now been deferred, for the time being, not overturned completely. The two nations have fought three full-scale wars since independence in , with tensions centred on the Himalayan region of Kashmir.
Relations between the neighbours have been virtually frozen since February , when India blamed a Pakistan-based armed group for the bombing of an Indian security convoy in Indian-administered Kashmir. Pakistan says it will allow some imports to ease price pressure, latest indication of thaw in relations with India. Pakistan allows sugar, cotton imports from India as ties improve.
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Using a forgotten rule under international law, the two sides can work out a free trade agreement just for textiles and clothing sector to exploit the economies of scale. Pakistan Prime Minister Imran Khan with PM Narendra Modi. File photo courtesy: MEA India. Only time will tell whether Khan will be able to walk his talk. However, the central idea of his assertion that international trade can play a very important role in building peace and lifting people out of poverty by creating economic opportunities is worth exploring.
Boosting India-Pakistan trade is not a new idea. The Indian Council for Research on International Economic Relations ICRIER and several other researchers have been working on this issue for quite some time. Nonetheless, the fact that this was mentioned by the newly elected prime minister of Pakistan gives the issue the much needed political impetus. In view of this renewed focus on trade, there are three issues worth re-examining.
One, the huge trade potential that exists between India and Pakistan and the economic benefits that can be reaped. Two, the premise that free trade between India and Pakistan can lead to greater peace. And three, attention must be focused on a forgotten trade rule under international law that both countries can use to enhance their bilateral trade.
Once upon a time, India and Pakistan had very high level of bilateral trade. According to a US AID report , in , India imported
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19/05/ · During (April-February), the recorded bilateral trade was $ million, of which India’s exports to Pakistan were $ million and imports were $2 million. 01/04/ · Pakistan defers India trade restarting decision over Kashmir. ‘Consensus’ move came after top economic decision-making body gave green light for imports of cotton and sugar from India.
Pakistan has constantly stated that any forward movement requires India to create an enabling environment by revisiting its unilateral and illegal measures of August 5, regarding India-held Kashmir. Sources said that the prime minister instructed the Ministry of Commerce and his economic team to immediately take steps to facilitate the relevant sectors, value added, apparel and sugar, by finding alternative cheap sources of import of the needed commodities.
According to the sources, various proposals have been presented to the ECC which considers these suggestions from economic and commercial point of view. After consideration by the ECC, its decisions are presented to the cabinet for ratification and final approval. The source said that in the present case, a proposal was presented to the ECC to allow import of cotton, cotton yarn and sugar from India keeping in view domestic requirements.
While this decision was not on the formal agenda of the cabinet meeting, the issue was brought up by cabinet members and the prime minister instructed that the ECCs decision be deferred and immediately reviewed. Prime Minister Khan said that provision of 3G and 4G internet services and improving connectivity in Gilgit Baltistan were vital for exploiting the true potential of local youth and promoting tourism in the area.
It would also help the youth in getting online education and utilising their capabilities through information technology, besides benefiting from the potential of tourism, he said. The prime minister was presiding over a meeting held here for bringing about further improvement in connectivity in Gilgit Baltistan. The meeting was attended by Federal Minister for Kashmir Affairs and Gilgit Baltistan Ali Ameen Gandapur, Minister for Information Technology Amin-ul-Haq, GB Chief Minister Muhammad Khalid Khursheed and senior officials.
The meeting deliberated on various projects for bringing about further improvement in communication links and internet facilities in GB. The prime minister said that the government was committed to development of Gilgit Baltistan and had approved a historic development package for GB, which would herald a new era of progress in the region. He said that as compared to past the incumbent government was giving special attention to improving connectivity in GB and its commitment was evident from per cent increase in allocation of funds for communication links in the region.
The prime minister directed the Ministry of Information Technology, Special Communications Organisation and Pakistan Telecommunications Authority to continue to strive for improved connectivity in GB.