The bilateral trade between Pakistan and India will rise to $6 billion in the short run as the informal trade between the two countries will be turning through the normal channels. Former Director IMF and currently Senior Fellow at Peterson Institute for International Economics, Washington DC Dr Mohsin S Khan said this at a seminar on expanding India-Pakistan trade organized by Pakistan Institute of Development Economics (PIDE) on Monday.
While giving a presentation on trade potential between two neighbouring states, he said that it was the first time that both countries decided to separate trade issues from other contentious issues like Kashmir and Indus Water Treaty, which he termed a positive development. The opening up of bilateral trade is major breakthrough that will bring enhanced opportunities for economic growth, he said adding that there were enormous potential to expand trade which can rise to $6 billion in the short run.
In the medium term, the studies show that the trade between the two countries could increase by as much as twenty times. He was of the opinion that the normalisation of trade relations would not mean that other bilateral issues would be placed on the backburner. “Instead, strong bilateral trade ties will build confidence to help resolve other pressing issues”. India is a fast growing economy that will occupy an increasingly important position in the region as well as in the world economy and in this context expanding bilateral trade links with India will be advantageous for Pakistan.
