Indo-Pak Bilateral Trade: Prospects Of Trade Agreements In The 21st Century
Author: Muhammad Abbas Raza

The legacy of Indo-Pak trade relations has remained one of the most sensitive and controversial area of interest in the South Asian regional politics. Pakistan has a prolonged trade deficit which has resulted in foreign loans, forcing national policies to be compromised. This research looks into roots of prospects and problems in trade between India and Pakistan. The thesis focuses deeply on the bilateral trade between both countries in the South Asian region and analyzes potential of trade agreements in various sectors which could thus result in fruition. The study uses Revealed Comparative Advantage to analyze competitive advantage of Pakistan vis-à-vis India in 20 manufacturing sectors and identifies 8 sectors in which Pakistan and India can enter into bilateral trade agreements. The results show that Pakistan has more potential in the sectors of hides and skins, textiles, vegetables, and agriculture raw material while India has more potential in the sectors of chemicals, stone and glass, metals, and intermediate goods. India and Pakistan can formulate trade policies and sign different preferential agreements or low tariff agreements in their potential sectors to boost their economies. Supervisor:- Dr. Ahmed Waqar Qasim

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Supervisor: Ahmed Waqar Qasim

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