January 25, 2021 – January 26, 2021
According to a World Bank report, bilateral annual trade potential between India and Pakistan is estimated to be around $37 billion. However, owing to the on-again, off-again nature of trade ties between the two, actual bilateral trade between India and Pakistan has only reached $2.5 billion as of 2018-19. Of late, growth in bi-lateral trade has been brought to a standstill due to the ban implemented by Pakistan on Indo-Pak trade since August 2019. The present trade impasse has adversely affected border economies in both countries. The current trade suspension has caused a monthly loss of USD 4.2 million to the border city of Amritsar and an estimated 50,000 people and their families, belonging to trading communities have been affected. Apart from bi-lateral trade, tense political circumstances between the two neighbours also have a spill-over effect on India’s trade with Central Asia and the Middle East. For instance, traders and truckers from India and Afghanistan have alleged that their free movement has faced hurdles from Pakistan in the process of transit trade was resumed, following closure due to Covid19.
In this context, this Policy Roundtable will address the following questions:
- What has been the impact of suspended trade on trading communities and other stakeholders of Indo-Pak trade?
- What steps need to be taken to resume trade between India & Pakistan?
- How can trade resumption aid in enhancing regional economic recovery post Covid-19?
- What avenues can be explored for regional economic cooperation between India-Pakistan and India-Afghanistan?
