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06
December 2018
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Trade
(The Total Investment & Insurance Solutions)
The current level of trade between Pakistan
and India is valued at a little over $2 billion, but it could be as high as $37
billion if both neighbours agree to tear down artificial barriers, the World
Bank said in a report. The report, "Glass Half Full: Promise of Regional
Trade in South Asia", was released here on Wednesday.The Total Investment & Insurance
Solutions
The bank also estimated Pakistan's potential
trade with South Asia at $39.7 billion against the actual current trade of $5.1
billion, Dawn online reported. In order to achieve the real potential of
regional trade, the bank suggested the removal of unnecessary non-tariff
barriers within the region, increase people to people contacts, improve road
and air connectivity and liberalize trade within South Asia.
Sanjay Kathuria, lead economist and author of
the document, talking to the media at the World Bank office here said trust
promotes trade, and trade fosters trust, interdependency and constituencies for
peace. In this context, he added, the opening of the Kartarpur Corridor by
governments of Pakistan and India would help minimise trust deficit, the daily
reported
For realising the trade potential between
Pakistan and India, Kathuria said the two countries should start with specific
products facilitation in the first phase. Calling connectivity a key enabler
for robust regional cooperation in South Asia, Kathuria said Pakistan had least
air connectivity with South Asian countries, especially India. Pakistan has
only six weekly flights each with India and Afghanistan, 10 each with Sri Lanka
and Bangladesh and only one with Nepal, but no flight with the Maldives and
Bhutan.
Compared to this, India has 147 weekly
flights with Sri Lanka, followed by 67 with Bangladesh, 32 with the Maldives,
71 with Nepal, 22 with Afghanistan and 23 with Bhutan. 12/6/2018 Pakistan-India
trade much below full potential of $37 billion: World Bank Kathuria said
reducing policy barriers, such as eliminating the restrictions on trade at the
Wagah-Attari border, or aiming for seamless, electronic data interchange at
border crossings, will be major steps towards reducing the high costs of trade
between Pakistan and India.
He added that the costs of trade were much
higher within South Asia compared to other regions. World Bank Country Director
for Pakistan Illango Patchamuthu said the country was sitting on a huge trade
potential that remained largely untapped. "A favourable trading regime that
reduces the high costs and removes barriers can boost investment opportunities
that are critically required for accelerating growth in the country," he
said.
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