The trade potential between India and Pakistan stands at $37 billion, according to a World Bank report which said that continued political tensions and lack of normal trade relations between the two nations have cast a shadow over cooperation efforts within South Asia.
The report 'A Glass Half Full: The Promise of Regional Trade in South Asia', which was released on Monday, has highlighted among key factors, the long list of product restrictions in bilateral trade. India and Pakistan continue to maintain long, sensitive lists of items on which no tariff concessions are granted.
The lack of normal bilateral trade relations between the two countries affects the formation or deepening of regional value-chains in various high-value trading sectors, Dawn newspaper reported quoting the report.
Pakistan has a list of 936 items and almost 17.9 per cent of tariff lines that apply to imports from all South Asian Free Trade Area (SAFTA) countries.
India maintains a list of 25 items (0.5 per cent of tariff lines), which includes goods such as alcohol, firearms, etc.
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