Bilateral trade between India and Pakistan grew 21% to $2.4 billion last year, as Islamabad reaped the benefits of trade normalisation more than the gains made by New Delhi, said the Indian High Commission.
According to latest figures of the Directorate General of Commercial Intelligence and Statistics, Ministry of Commerce and Industry India, which were released on Monday, the volume of bilateral trade recorded a net increase of $410 million from April last year to March this year. Pakistan’s exports to India grew 28% while Indian exports to Pakistan increased 19%. Bilateral trade has increased to $2.4 billion, which may soar to $6 billion in the next two years if both countries decide to treat each other equally. Currently, most of the trade between India and Pakistan takes place via Dubai and its volume is estimated at over $4 billion.
The figures come hard on the heels of interests shown by the political leadership of both sides to improve bilateral ties following sudden heightening of tensions due to killing of each other’s prisoners. According to an official statement released by the Indian High Commission in Islamabad, Pakistan’s exports to India in the last Indian financial year (April 2012-March 2013) grew 28% and reached $513 million. Metalliferous ores and metal scrap, organic chemicals, raw cotton and leather were among the commodities that contributed significantly to the increase. The High Commission termed the 28% increase in Pakistan’s exports “impressive” when viewed in the context of negligible increase (0.3%) in India’s overall imports. India’s exports to Pakistan in the same period increased $300 million, a growth of 19%. Total Indian exports to Pakistan stood at $1.84 billion, putting the trade balance in favour of New Delhi.
“The growth in bilateral trade, especially in Pakistan’s exports to India, reflects the positive effect of a number of steps taken towards fully normalised trade relations,” the High Commission stated. It added three bilateral agreements signed in 2012 in the areas of customs cooperation, mutual recognition of standards and addressing trade grievances were intended to further improve trade environment.
