A new World Bank report about Pakistan and India collectively represent 88 percent of South Asia’s Gross Domestic Product (GDP), trade between the two countries is only valued at a little over $2 billion which could be as high as $37 billion,
Regional trade can create many more jobs and make the country prosperous if trade barriers with South Asia especially between India and Pakistan are removed. It can be good impression. Pakistan’s trade with South Asia accounts for only 8 percent of its global trade, despite the region being the world’s fastest growing.
Addressing a selected group of journalists here at the WB office, World Bank lead economists, and main author of the report, “By reducing man-made trade barriers, trade within South Asia can grow roughly three times, from $23 billion to $67 billion”.
The report argued that the costs of trade were much higher within South Asia compared to other regions.
The average tariff in South Asia is more than double the world average. South Asian countries have greater trade barriers for imports within the region than from the rest of the world.