According to Bloomberg, Pakistan must negotiate a trade pact with India, even though persuading Indian businesses to do so could be difficult. Ishaq Dar, the finance minister, highlighted the government’s careful evaluation of trade issues with India, pointing out possible advantages.
Normalizing commercial ties might result in a large increase in Pakistan’s exports, which the World Bank estimates to be 80 percent of the country’s total value of 6.9 trillion rupees, or nearly $25 billion. The difference in the two countries’ economies, nevertheless, poses a challenge. India’s stable economy can be reluctant to welcome other developing nations into its markets out of concern for the welfare of domestic producers.
Negotiations are made more difficult by the economic power differential between India and Pakistan, as India tends to ignore Pakistan. India’s GDP is ten times greater than Pakistan’s. Given the impending general elections in India, Pakistani officials might decide to postpone initiating trade talks until a more favorable time.
Given that Prime Minister Modi has already demonstrated a desire to interact with Pakistan, a prospective reelection of Modi could present such a chance. Even while there aren’t many supporters in India, especially now that Wazir Sharif is gone, Pakistani companies are eager to promote improved trade ties.
