AN INDISPENSABLE GROWTH FOR PAKISTAN THROUGH FREE TRADE WITH INDIA TO COUNTER INFORMAL TRADE
Keywords:
Bilateral trade, Most favored Nation, trade restrictive policies, Golden Land, trade and investment co-operation, trade potential, Transaction costs, Social similarities, comparative demands, GeoEconomic potential. Transport impediments, competitive advantages.Abstract
Pakistan and India, the best demographic South Asian “Golden Land”,
have had a tremendous experience of bilateral trade with relevant
competitive advantages contributing towards Global trade enchantment
with an extensive realism of free trade in last decades but that has
unfortunately declined, which has let the masses on both sides suffer the
miseries of poverty and low standard living mainly caused by the trade
restrictive policies on both the sides. Given the endowed trade feasibility
is in the wide interest of both sides where this study classifies the core
areas for available possibilities of trade and investment cooperation
amongst both countries further encouraging the exchange for trades
through acquiring the status of most favorite nations towards each other
to curtail the degree of informal trade by proper archive management. The
policy by now inhibits trade, lacks transparency leading to high
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transaction costs along with other varied barriers though having Social
similarities as well comparative demands across equally. Effective system
of information flow, contract enforcing, risk sharing & mitigation has
already been organized by the informal trader being efficient than formal
trade in returns even though relative cost is much higher. The paper as
well identifies factors determining informal trade, major informal route,
estimate of Pakistan informal trade with India, modalities of informal
trade and recommendations to shit it towards formal trade by promoting
free trade.
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