Pakistan’s trade with India has seen much fluctuations since its inception.
Pakistan’s trade with India has seen much fluctuations since its inception. However, last time Pakistan restricted trade with India after New Delhi revoked the special constitutional status of Jammu and Kashmir in August 2019.
Trade with India
Pakistan’s trade with India has seen much fluctuations since its inception. However, last time Pakistan restricted trade with India after New Delhi revoked the special constitutional status of Jammu and Kashmir in August 2019. Pakistan’s trade policies with India are outdated ones. Because, instead of direct trade we purchase same India products through third country like Dubai and Singapore which costs us very expensive.
Last year’s floods triggered by monsoon’s torrential rains wreaked havoc with our country. Which resulted in soaring the prices of essential commodities and shortage. In this critical situation, International aid agencies requested to allow them to bring faster aid supply to the affectees through Indian border. But government did not allow them for relief operations. Such policies which could not benefit us in such catastrophes are meant to be useless.
Hostilities like on Kashmir and other factors are the main reasons for restricting trade. Through direct trade it can promote peace and act as confidence building measure, which could lead to better, less hostile environment and can resume bilateral dialogue on decades-old Kashmir dispute. It can also promote domestic prosperity, counter domestic problems, promote harmony and bring internal stability.
Pakistan faces huge economic problems, especially dependence on international financial institutions. Trade with India can save our foreign exchanges. Like, in 2004, it was estimated that Pakistan could save $110 million a year if it directly bought tea from India rather than Kenya or other sources. Through trade our geographical proximity can promote cultural affinity with the people of both country because we share so much same. Trade will lead to improve welfare, cheaper commodities, lower transportation costs and greater government revenue. Trade will also enhance both country’s prospects for peace and prosperity. As the French Economist Frederic Bastiat said, “When goods do not cross borders, soldiers will.”
