Publication - Working Paper
The report focuses on Pakistan-India trade and discusses the challenging issues of non –tariff barriers and subsidies. It emphasizes the need for technical capacity to both understand the complexities as well as respond in terms of specific policy instruments such as countervailing duties and regional trade liberalization (SAFTA) in the context of the global trade regimes of India and Pakistan.
The following conclusions are drawn:
In conclusion, a WTO consistent Pakistan-India trade will help make Pakistan a regional trade hub. Sustained welfare improvements for the citizens arise when the economy transitions from a transportation hub of goods and energy to a manufacturing hub that creates high productivity, high wage jobs in multiple regional growth nodes. Key to that transition are skilled workforce, modern infrastructure (ports, roads and energy), substantially improved governance for service delivery and a development framework that promotes investment and manufacturing over consumption. Reforms to that end need to be implemented for citizens to realize the full benefits of liberalized Pakistan-India trade in a vibrant economic region.