Indo pak trait
Trading for trust
In first few years after indepe ndence, 60% of Pakist an’s total trade was with India, today it is less than 3%.
By Farooq Tirmizi
Published: September 23, 2012
In first few years after independence, 60% of Pakistan’s total trade was with India, today it is less than 3%.
It is one of the most ridiculous sights in the world: at the Wagah border crossing that links Pakistan to India, several trucks stand on the Pakistani side, with labourers unloading 50-kilogramme sacks of cement that they then carry to the Indian side of the border and load onto very similar trucks. Why the Pakistani trucks do not simply cross over into India themselves is part of the story of the insanity — and potential — of trade between India and Pakistan.
Pakistan and India share a dubious distinction: the border between the two countries has the lowest level of trade between any two countries of similar size and similar geographic and cultural proximity. This is even more disturbing when you consider the fact that in the first few years after independence, 60% of Pakistan’s total trade was with India, compared to the less than 3% it is today.
Yet in recent months, there have been groundbreaking overtures between the two countries: Pakistan finally granted most-favoured nation status to India. That makes it sound like we just declared India to be our best buddy (which is why the Difa-e-Pakistan Council crowd freaked out), but what it really just means is that we promise not to discriminate against India as compared to our other trading partners.
So what does this mean for Pakistan? Will it affect the average Pakistani? As it turns out, the answer is a resounding yes. Everyone, from the chai-wala and the thela-wala to the textile exporter and the industrial tycoon, will see their lives change, and mostly for the better.
For starters, those labourers at Wagah will hopefully get a break soon. The reason they are needed is because India only allows Pakistani cement
In first few years after indepe ndence, 60% of Pakist an’s total trade was with India, today it is less than 3%.
By Farooq Tirmizi
Published: September 23, 2012
In first few years after independence, 60% of Pakistan’s total trade was with India, today it is less than 3%.
It is one of the most ridiculous sights in the world: at the Wagah border crossing that links Pakistan to India, several trucks stand on the Pakistani side, with labourers unloading 50-kilogramme sacks of cement that they then carry to the Indian side of the border and load onto very similar trucks. Why the Pakistani trucks do not simply cross over into India themselves is part of the story of the insanity — and potential — of trade between India and Pakistan.
Pakistan and India share a dubious distinction: the border between the two countries has the lowest level of trade between any two countries of similar size and similar geographic and cultural proximity. This is even more disturbing when you consider the fact that in the first few years after independence, 60% of Pakistan’s total trade was with India, compared to the less than 3% it is today.
Yet in recent months, there have been groundbreaking overtures between the two countries: Pakistan finally granted most-favoured nation status to India. That makes it sound like we just declared India to be our best buddy (which is why the Difa-e-Pakistan Council crowd freaked out), but what it really just means is that we promise not to discriminate against India as compared to our other trading partners.
So what does this mean for Pakistan? Will it affect the average Pakistani? As it turns out, the answer is a resounding yes. Everyone, from the chai-wala and the thela-wala to the textile exporter and the industrial tycoon, will see their lives change, and mostly for the better.
For starters, those labourers at Wagah will hopefully get a break soon. The reason they are needed is because India only allows Pakistani cement