Home Journal List Journal of the Research Society of Pakistan Volume-58 Article Details

Political Economy of India and Pakistan Relations

Abstract

Pakistan and India were together under the British Raj for more than 100 years. After independence in 1947, Pakistan chose to be a state based on religious ideology. This decision opened doors of confrontation in South Asia. India and Pakistan eventually fought several wars, mostly over the disputed Kashmir territory. A resulting economic cost—ultimately born by the poor citizens of both the countries—was the blockage of all kinds of relations, including normal trade with each other. There is growing research on the positive relationship between peace, economic development, and trade. Similarly, there is literature on the connection of lack of trade, conflicts, and underdevelopment. The India-Pakistan case exhibits this trend. The trade volume between them has remained low throughout the past six decades. The actual trade is low, although the trade potential is around $37 billion between them. This research is based on primary and secondary data collected for PhD research by the researcher. This research will highlight political, economic, and strategic factors that are responsible for the lack of proper trade relations. It will explain some specific conditions that can possibly enhance the trade growth between them. This research will also highlight how energy cooperation, market access, trade liberalization, and political harmony can drive greater trade expansion.

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