Pakistan-India trade: will it reduce poverty in the region?

Pakistan-India trade: will it reduce poverty in the region?

According to the Pakistani commerce ministry’s figures, between them, India and Pakistan import and export goods worth $ 200 million every year. Pakistan’s own economic indicators put the figure at around $250 million. Even so, trade between Pakistan and India has registered a gradual increase over the last decade. In 1990 India’s exports to Pakistan were just $135 million and imports were $145 million. In 1998, exports grew to $389 million and imports to $264 million. By 2000-2003, India’s exports to Pakistan have grown to $631 million and imports to $527 million.

Experts agree that great trade potential exists for both if the two sides could focus on each other’s specific needs and capabilities. Pakistan can import Indian iron ore, machinery and steel items, chemicals and dyes, wheat, spices, tea and other products while India can buy cotton yarn and textiles, leather products, surgical instruments, water coolers, papers, vegetables, fruits and other things from Pakistan. Meanwhile, unofficial trade between the two flourishes and is worth US$5 billion, five times the official trade figures. Indian textile machinery, tanneries-equipment, machine tools, and spare parts are often ordered from jakarta, Bangkok, Dubai, Hong Kong or Singapore and then re-exported to Pakistan at a greater cost. If we analyse the region in general, there are few facts that should prove as an eye opener for the economic experts.

what do you think?