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2010-06-08

Pakistan and India to benefit from trade ties

Pakistan and India work closely to strengthen economic and trade relations.

 

The Pakistani president said that India and Pakistan need to work closely for strengthening economic and trade relations. Prime MinisterYousuf Raza Gilani said this while addressing the North Atlantic Council on June 4, 2010 in Brussels.

 

The two countries have an informal or indirect bi-lateral trade of USD 2 –3 billion per year. It is important that direct trade relations are given more importance. The bilateral trade between India and Pakistan would have been USD 900 million by March 2010 if there had been no suspension of trade between two countries.

 

The SME exporters on both sides are expected to benefit if trade ties between the two countries are resumed. The traded products between the two countries are agro- food products, chemicals and medicines, among others. A healthy development on the trade front will help small exporters to supply such products to the other country and thereby, increase their revenue.

 

India and Pakistan are neighbouring countries and the shipment cost is comparatively less than that involved in shipment to other export destinations. This is a great incentive for SMEs on both sides to step up trade ties.

 

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