Bi-lateral Trade b/w India and Pakistan: Transport Connectivity

Donors/Partners: USIP/ICRIER
Locale: India-Pakistan

Duration of Project: December 2016-November 2017

Concept/Introduction:
In recent years several studies have highlighted problems of trading through land route and identified impediments through the rail and road channels. However, none of the studies estimate transaction costs on different routes which emanate from the limitations of trade and transport policies, practices and infrastructure deficiencies. A major development during the period 2013 and 2016 is that, both countries i.e. India and Pakistan are actively pursuing new projects and initiatives on regional connectivity. The study will examine the possible gains for India and Pakistan to connect through the land route and bilateral benefits by engaging in regional transport agreements.

Objectives:

To identify key challenges and bottlenecks in cross-border trade.
To identify key reforms and policy measures for formalizing and encouraging trade in both countries.

Team: Rabia Manzoor, Dr. Vaqar Ahmed, Syed Shujaat Ahmed, Abbas Maken

Findings: 
In recent years, several studies have highlighted problems of trading through land route and identified impediments through the rail and road channels. However, none of the studies estimate transaction costs on different routes, which emanate from the limitations of trade and transport policies, practices and infrastructure deficiencies. A major development during the period 2013 and 2016 is that, both the countries, i.e. India and Pakistan are actively pursuing new projects and initiatives on regional connectivity. The study will examine the possible gains for India and Pakistan to connect through the land route and bilateral benefits by engaging in regional transport agreements.