 India and pakistan are the two nations

 Pakistan and India are two largest economies of South

Asia.
• Common border, common history, culture, languages,
geography, agriculture zones and climate.
• According to World Bank Pakistan and India accounts:
• 92% GDP of South Asia’s, 85% population and 80% surface
area but only 20% share in regional trade.
• After six decades they don’t have normalize trade
relations.
• The Pakistan economy exported US$ 23.6 billion goods and
imports were US$ 44.92 billion
• India exports of goods are US$ 304.6 billion and imports
are US$ 489.4 billion.
• This huge difference between sizes of economy between
both countries.
 The comparison from1980 to 2005.
• In 1980’s South Asia’s trade is US$ 12 billion and
in 2005 increased to US$ 126 billion.
• While the East Asia’s trade in 1980’s is 48 billion
and increased to US$ 1 trillion in 2005.
• There is huge difference between trade in South
Asia and East Asia.
• The reason behind the increase in trade
between East Asian region is they focus on trade
liberalization and regional cooperation they take
benefits from each other.
• The South Asian Free Trade Area (SAFTA)
agreement in 2006.
 According to Gull (2009) the current trade
among Pakistan and India is conducted by three
different methods:
• Formal trade: The formal trade between
Pakistan and India will increase from US$ 2.25
billion to US$ 30.4 billion if both countries
liberalize trade
• Informal trade: About US$ 5 billion unofficial
trade between Pakistan and India, they use third
country routes like Afghanistan, Dubai,
Singapore, Hong Kong, Srilanka and Gulf States
which will increase cost of doing business. The
goods from Kolkata has been shipped through
Singapore and Colombo ports.
 • Trade between Pakistan and India can gave
remarkable benefits to the Pakistan. Low cost
product and more variety of goods available for
consumers.
 • The Pakistan’s government will earn more
benefits by formalized trade in the form of
custom duties which are presently lost by illegal
trade Nabi (2013).
 • According to an estimate, the liberalized
agriculture trade between Pakistan and India
would generate around 2.7 lakh jobs in India and
1.7 lakh jobs in Pakistan Chengappa (1999).