Prospects for Sustained Economic Cooperation between India and Pakistan

Abstract

Bilateral trade between India and Pakistan is considered by certain quarters on both sides of the border as the most important confidence building measure in normalizing the strained relationship. In this connection, trade being most important confidence building measure, is believed to be the only way to transform the overwrought bilateral relations to sustained bilateral relations. It is prophesized in this case study that bilateral trade can not only help normalizing the strained relations, but also can serve as fundamental constructive step in the peaceful resolution of all ongoing bilateral issues. Trade related legislation in both countries has already reduced the volume of trade, and has allowed bilateral trade, based on a restricted list. The study highlights that the traditional rivals should focus trade liberalization, keeping in view the common goal of socio-economic development. The study will explore the impediments of economic cooperation and the trade potential between India and Pakistan.