Apart from inherent political discords, what has hampered bilateral trade is a regime of protectionism. Respective governments have been very conscious of their local industries, and competition in a laissez-faire mode was shunned for obvious reasons and isolationism was preferred. Though formal trade has always been negligible, what has made them logical trading partners is geography, diversity of products and instant accessibility. This is why illegal trade via smuggling and rerouting of goods via foreign destinations has for decades been the modus operandi. The only exception was when they formally traded under a restrictive bilateral trade regime, known as the Most Favored Nation (MFN) status.
Adviser to the Prime Minister on Commerce, Textile, Industry and Production, and Investment Abdul Razak Dawood has said trade with India is the need of the hour and beneficial to both countries
Also, Russia wanted to do investment in the field of construction and lay pipelines in Pakistan
“As far as the ministry of commerce is concerned, its position is to do trade with India. And my stance is that we should do trade with India and it should be opened now,” Mr Dawood said in an interaction with media at an exhibition on engineering and healthcare organized by the Trade Development Authority of Pakistan.
“The trade with India is very beneficial to all, especially Pakistan. And I support it,” he added. About the exports to Afghanistan, the advisor said his ministry had increased the number of exporting items to Afghanistan (in Pakistan rupee) to 17. “Still various businessmen are contacting me to include their articles/items in this list as they also want to export their goods to Afghanistan in Pak rupee,” he claimed. Talking about the trade relations with Russia, Mr Dawood said Pakistan’s exports to Russia and the countries bordering it (central Asia) and others required immediate attention and growth. “So we need to open this trade. And that is why we are going there,” he said, adding that Russia wanted to work in Pakistan in the fields of laying pipelines, constructions, etc. He admitted skyrocketing prices and their adverse impact on the common people. “I agree with you on this issue. But this issue will persist due to imports of oil, raw material, machinery and other goods,” Mr Dawood said.. The State Bank of Pakistan says exports dipped to $0.099 million from $1.035 million. India with a billion-plus population and GDP 10 times larger than Pakistan will be a lucrative market. India conventionally has had a trade surplus. Yet, Pakistan’s diversity in textile, agrarian produce and even finished goods can stand the litmus test of competition. While trade is road-based and luckily the infrastructure exists too, it will be a bonanza of sorts to realize the Chinese BRI dream of connectivity.
