Pakistan Business Council (PBC) has stated that prospects of normalization of relations between arch-rivals Pakistan and India seems a rare possibility in near future.
PBC stated that normalization is a matter of ‘when’ and not ‘if ‘ in context of given geography.PBC believes business community will greatly reap fruits of normalisation. The council is actively engaged with Confederation of India Industry to come up with a framework that will facilitate traders on both sides of the border.
It is pertinent to mention that during the period of normalcy, Pakistani traders did not reap any real benefits from mutual trade as Indian authorities used non-tariff barriers excessively to discourage Pakistani products. Furthermore, India imposed strict quality standards and certifications on imports from Pakistan.
In this context, a formidable trade policy is required to negotiate favorable terms for trade with India.
Pakistani exports to India surged from $84 million in 2003 to $312 million in 2015. Likewise, Pakistani imports from India had swelled from $226 million to $1.699 billion. These figures indicate that trade balance has been heavily in favour of the Indian side.
India has imposed tariff rate on Pakistani products at 14.6pc whereas Pakistan has maintained it at just 6pc.