Economic Relations between Pakistan and India: Impressions from the Past and Prospects for Future

Pakistan and India have failed to establish substantial and sustained economic relations between them. Despite being neighbours, they couldn't enjoy a good volume of bilateral trade in multiple sectors. This study traces the history of bilateral trade between Pakistan and India. While identifying patterns of trade between them, the study attempts to identify barriers in bilateral trade between them like trade regimes, non-tariff barriers and other discriminatory measures. The study also makes an attempt to address the question concerning how the impediments in bilateral trade can be removed to enhance bilateral trade and economic connections. On the basis of interviews of Key Informants (KIs), this study explores the potential of bilateral trade between Pakistan and India and finds possible sectors where bilateral trade can be augmented. Lastly, this study finds possible sectors where Pakistan and India can initiate joint ventures to seek win-win approach in bilateral economic relations.