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Relations between India and Pakistan have been strained by a number of historical and political issues. violent partition of British India in 1947 the Kashmir dispute numerous military conflicts
India Population Area Population density Capital Largest city Government Official languages 1,210,193,422 3,287,240 km (1,269,210 sq mi) 382/km (922/sq mi) New Delhi Mumbai
Pakistan 170,600,000 796,095 km (307,374 sq mi) 214.3/km (555/sq mi) Islamabad Karachi
Federal republic, Parliamentary Islamic Parliamentary Republic democracy Hindi, English and 20 other official languages Urdu, English
Main religions
80.5% Hinduism, 13.4% Islam, 95-98% Islam (80-95% Sunni, 2.3% Christianity, 1.9% 5-20% Shi'a), 1.6% Christianity, Sikhism, 0.8% Buddhism, 0.4% 1.6% Hinduism, others Jainism $1.537 trillion ($1,265 per $174.866 billion ($1,049 per capita) capita) $4.06 trillion ($3,339 per $464 billion ($2400 per capita) capita) $36.03 billion (1.83% of GDP) $5.1 billion (2.8% of GDP)
Social relations
Cultural links
similar cultures, cuisines and languages Pakistani singers, musicians, comedians and entertainers Indian music and film are very popular in Pakistan
Linguistic ties
Hindustani is the lingua franca of North India and Pakistan
Matrimonial ties
cross border love Veer Zara- SRK shoaib malik weds sania mirza
Sporting ties
Sports diplomacy#Cricket ziya ul haq,sardari,musharaf Rohan Bopanna of India and Aisam-ul-Haq Qureshi of Pakistan indo pak express
History
In 1948-49, more than 70 per cent of Pakistans
respect to sterling
Commonwealth, including India, imposed a trade embargo on Pakistan
30 November 1974- shimla agreement- lifting embargo 15 July 1976- Pak Govt. permitted its private sector to trade with India June 1983, Joint Business Commission 1986- SAARC July 1989- Pakistan agreed to import 322 Indian items- shariff SAPTA-5550 tariff lines- for concession 1996- India offered MFN to Pakistan-Pakistan increased its positive list to 600 items (imports from india) Kargil war
2005- musharaf manmohan trade did pick up significantly -$1.5 billion in 2006
stance
India has been arguing that trading relations could be considered a precursor to more general discussions Pakistan has historically been hesitant to encourage cultural and economic exchanges kashmir issue PAK military is opposed to any thawing of relations with India Pakistan Business Council- reviving trade
Trade Potential
Impediments to trade
NTBs
Deal with visas Tedious customs procedures as outlined in the customs cooperation agreement Multiple sanitary and phytosanitary standards And ineffective dispute settlement through the redressal of trade grievances agreement India has not allowed FDI from Pakistan
Banks from both countries can open branches in the other by 2013
NonTariff Barriers
Due to lack of reciprocity in granting MFN status to India Eg: When India granted MFN to Pakistan in 1996, within six months Pakistan captured 30 percent of the Indian yarn market Indian reverted to using NTBs
PITAD negetive list Pakistan revealed comparative disadvantage in about twothirds of the 926 product lines looked. 639 of the 926 products be put on the negative list
impact
Pakistan will gain from access to advanced technology and machinery from India. likely that the pharmaceutical and automobile industries will lose out to more competitive Indian industries Indias heavily subsidized agriculture makes Pakistani products uncompetitive pak sectors like textiles, electric fans, and tires will gain efficiency gains for pakistan, as they will be able to achieve economies of scale with a large Indian market Pak textile sector can greatly benefit from the growing demand of the Indian middle class
Mind-set of field-operating customs officers and other government officials is excessively bureaucratic and negative about trade between the two countries, resulting in undue delays. Subsidised agriculture industry in india Eg: 450 pakistani rupees per 20 kg bag, whereas it is 1,800 rupees per bag in pakistan As well as for electricity and diesel,
possibility of joint ventures, however, can help the Pakistani industry in general expand.
Obvious gainers for Pakistan would be textiles and leather, which can gain from cheaper imports of chemicals from India
Steps to promote
Reaching agreement on non-tariff barriers (NTBs) Developing and implementing a dispute resolution framework. Developing the physical infrastructure required to facilitate two-way trade Transportation Opening up trade in services medical,banking, education, tourism?? Lol :D
Building confidence
Reference
1. Mohsin Khan (2013);India-Pakistan Trade Relations A New Beginning 2. Michael Kugelman,Robert M. Hathaway (2013); PakistanIndia Trade:What Needs To Be Done?What Does It Matter?;available at:www.wilsoncenter.org/program/asiaprogram 3. PHD Research Bureau (2013);India-Pakistan Bilateral Trade: Past, Present & Future;available at:www.phdcci.in