Should Pakistan open free trade with India

For both the countries 1947 is the year of freedom from British. Poor relations since partition. 3 wars with India. water issue. Both countries always try to dominate each other. Trade has been taking place but distortions are always there. Last government took steps to improve relations. MNF was awarded to India.

Medicines Tomatoes Onions Black tea Accessories for leather (bags and footwear) Dies for vehicles Cotton linters Chemicals for leather industry Textile spinning machines Winding machines Fly ash for cement industry only Printed books of all kind Flavoring powder

Wheat Fans Cutlery Marble Dates Portland cement Waste and scrap, copper Grain splits leather Waste and scrap ,stainless steel Surgical instrument Cotton fabrics

India and the Trade Development Authority of Pakistan (TDAP) have agreed to start strategic dialogues to enhance cultural exchange and trade relations as a part of efforts to improve relations between the two neighboring nations.

Pakistan exports 181 products to India. Pakistans total exports to world worth of (12.8 b$). Pakistans exports to India worth of (235 m$).

AGRICULTURE

Pakistan is one of the largest producers of several agricultural products including , apricot, cotton , milk , dates, sugarcane, onion, oranges, mango, wheat and rice. It can export agriculture products to India.

LEATHER
Pakistan exports leather to India worth below 01 million Dollars while there is a potential growth of 365 million dollars.

CHEMICALS
Pakistan exported 40 million dollars worth chemicals in the 2010 to the world because of high demand. Pakistan can export chemicals to India.

TEXTILES AND CLOTHING

Largest export potential to India Pakistan exported India only 30 million dollars worth of textile Bangladesh and Nepal are largest exporters to India

SURGICAL
Surgical goods figure as the highest potential export to India with a potential market of US $ 215 million.

METAL SCRAP

Significant demand of metal scrap in India.

CEMENT

India cement industry is facing challenges. Pakistan is producing 9.8 MMT of surplus. Exports to India were 0.6 MMT in 2011.

CHEMICALS

Pakistan exported 40 million dollars worth chemicals in the 2010 to the world because of high demand. Pakistan can export chemicals to India.

MARBLE
The indicative potential of export of marble to India is 23.6 million dollars but currently it is facing problems due to delayed delivery via Sea routes.

Black tea. Machinery for medical imaging. Imports regarding Field of IT. Luxury Automobiles which are imported from western world or Japan.

Animals Fruits Importing those goods which India can provide Pakistan will be beneficial for Pakistan because it will result in saving of Transportation Cost and Pakistan will have to pay less money as compare to Western World.

Values Differences. Poor political and foreign affairs. Ineffective transportation. Law and order distractions in routes. Social aggressiveness.

Positive impact will be on growth of economy of Pakistan. More foreign and local investment will be made. Businessmen will earn more money. It Will increase national income

Local and foreign investment

Local and foreign investment will be positive because Indian and other investors will invest in Pakistan to get benefit from free trade between Pakistan and india if they are not doing trade with india or have issues. Local investors will also invest to export goods to India.

Employment
Employment level may get high because of more employment opportunities in Pakistan (foreign investment).

Industrialization
It may result in industrialization because of exports of finished goods to india

BOP(positive) BUDGET(positive) BANKING SECTOR(positive) POLITCAL RELATIONS(positive)

It may result in poor relations with China and some other countries

If Pakistan trade with India then

It ill boost the Pakistani economy. Pakistan can also negotiate on core

issues. Such as water issue and territory issue.