ABSTRACT

The study endeavors to explore policies and procedures related to banking and trade which are hindering Pakistan’s trade with Central Asian (CA) and to possibly find solution for these problems. The study discusses possible theoretical framework to understand the interplay of factors and their respective analysis. It devised a suitable methodology based on inter- disciplinary approach and conducted secondary analysis of relevant literature, qualitative data collection and content analysis of policy documents to find the policy gaps and their possible solutions. CA countries are landlocked, Pakistan can have access to their market through China or Afghanistan. Afghanistan still remains politically unstable and any long term investment in the country remains susceptible to failure. Pakistan may access the CA through China and CPEC, which is also the shortest route as discussed by the study. The study found out that besides trade complementarity there is proven huge trade potential between the economies of CA and Pakistan. It also found out that with most CA countries this potential is being missed by Pakistan. The reason for this loss came out in the data analysis as gaps in trade and banking policy of Pakistan. The study presented a total of 12 policy recommendations for both trade and banking policy to overcome the gap between realized and potential trade with CA. Keywords: Central Asia, Pakistan, Trade policy, Banking Policy, CPEC, Regional Trade.