South Asian Business news and information

Times of India reports: 

It’s astounding that between two contiguous neighbours, one with a $130 billion economy and the other close to a trillion dollars, trade should amount to only $2 billion, most of which is routed indirectly through Dubai.

Such circuitous trading through informal routes makes Indian and Pakistani goods uncompetitive in each other’s markets and raises costs for both economies, besides cutting off customs departments of both countries from a lucrative source of revenue. A study by a noted economic research agency estimates that bilateral trade could be stepped up immediately to $6.6 billion if the South Asia Free Trade Agreement were to be implemented and direct trade links established between the two countries. The trucks crossing over at Attari illustrate both the promise of direct trade and the obstacles facing it.

At present, bilateral trade between two countries stand at $1.6 billion and the governments of India and Pakistan are planning to increase it to $10 billion by 2010.

It is estimated that 150 trucks can cross the Wagah border every day. The governments of the two countries have decided to increase the trade tenfold. Earlier, only 40 items were allowed to pass the borders but now, 1800 items including vegetables and other perishable goods will be traded.  

It is a good thing that trucks can now cross the border but the process has given rise to another problem. Till now, the rule was that Indian trucks were unloaded near the border and the goods were carried by the porters from both countries. Since trucks can cross borders, they are afraid of losing their jobs. On Monday, when the trucks started to cross the borders, the porters expressed their anger by throwing stones at the convoy.   

After sixty years of rivalry, the two countries have come to understand the greater business prospects they hold for each other. Both India and Pakistan have expanding economies and both these countries have a growing population with growing demands. The sixty years of political rivalry has brought nothing but sufferings and bloodshed. No doubt, this bilateral trade will have positive effects on their economy. I wish and pray that the government of the two countries take necessary steps to make sure that businessmen from both countries can easily conduct businesses in future. 

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