The current trade between India and Pakistan is at a little over USD 2 billion, much below than the potential, and can go up to USD 37 billion if the two countries tear down artificial barriers like lack of connectivity, trust deficit and complicated and non-transparent non-tariff measures, according to a World Bank Report
The report titled ‘Glass Half Full: Promise of Regional Trade in South Asia’ was released here on Wednesday. Dawn reported that it says that the current trade between the two countries is much below than full potential. It could only be harnessed if both countries agree to tear down artificial barriers. The bank also estimated Pakistan’s potential trade with South Asia at USD 39.7bn against the actual current trade of USD 5.1bn.
The report also unpacks four of the critical barriers to effective integration. The four areas are tariff and para-tariff barriers to trade, complicated and non-transparent non-tariff measures, disproportionately high cost of trade, and trust deficit.
Talking to a group of journalists on key points of the report at the World Bank office in Islamabad, lead economist and author of the document Sanjay Kathuria said it was his belief that trust promotes trade, and trade fosters trust, interdependency and constituencies for peace.
In this context, he added, the…