Islamabad: The Gross Domestic Product (GDP) of Pakistan could increase by at least 1.5 percent during next financial year 2014-15 due to normalization of trade with India.
The normalization of trade relations with India would also create approximately 169,000 jobs in Pakistan over a three years period.
According to the Nation, this was revealed in a research led by renowned economist Dr. Hafiz Pasha and conducted by IPP of the Beaconhouse National University on the dynamics and impact of liberalizing trade between Pakistan and India.
The research revealed that conservative estimates indicate that the opening of trade with India will predominantly benefit Pakistan.
The research found that cheaper imports of intermediary goods that are used by Pakistan’s local production sectors will not only help in reducing inflationary pressures in the country, but will also help make Pakistani exports more competitive globally and thus contribute to an increase in Pakistan’s exports overall, the report said.
Speaking on the occasion, Secretary Commerce was of the view that liberalizing the existing trade regime with India will spur development in both the countries.
According to the report, Dr Manzoor Ahmed, former Ambassador to WTO, explained the current status of Pakistan’s trade policy towards India.
He also outlined major steps that both neighbouring countries need to take to move the process forward, which include opening new trade routes, trade facilitation and modernising infrastructure.
In the end, the participants at the seminar concluded both India and Pakistan should implement Customs agreement to simply Customs procedures, the report said.
Furthermore, both countries should facilitate the establishment of branches of banks from the counterpart country to remove barriers to trade related to the payment and repatriation of profits across the border, it added.
First Published: Wednesday, July 3, 2013, 14:53