Lok Sabha Question No. 1031 (UNSTARRED), answered on 2018-12-17
Subject: Bilateral Trade between India and Pakistan
Ministry: COMMERCE AND INDUSTRY
Asked by: PONGULETI SRINIVASA REDDY

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 1031 TO BE ANSWERED ON 17 th  DECEMBER,2018

## BILATERAL TRADE BETWEEN INDIA AND PAKISTAN

## 1031. SHRI PONGULETI SRINIVASA REDDY:

Will the Minister of COMMERCE & INDUSTRY ( वा ͨणÏय एवं उɮयोग मंğी ) be pleased to state:

- (a) the details of the trade between India and Pakistan during each of the last three years and the current year;
- (b) whether it  is  a  fact  that  according  to  various  estimates,  the  annual  bilateral  trade between  the  two  countries  has  the  potential  to  surpass  $20  billion,  if  both  the countries cooperate and remove barriers and restrictions because currently, most of the trade happens indirectly through Dubai, Singapore, Port of Bandar Abbas (Iran); and
- (c) if so, the details thereof and the steps being taken by the Government to improve the trade to Pakistan?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SHRI C. R. CHAUDHARY)

- (a) The value of India's exports to Pakistan and imports from Pakistan, during the last three years and the current year, as available upto October 2018,isgiven below:-

|                                       | VaIue in US$ Million   | VaIue in US$ Million   |
|---------------------------------------|------------------------|------------------------|
| Period                                | Exports                | Imports                |
| 2015-16                               | 2,171.14               | 441.03                 |
| 2016-17                               | 1,821.87               | 454.49                 |
| 2017-18                               | 1,924.28               | 488.56                 |
| 2018-19 (April-October) (Provisional) | 1,179.91               | 338.66                 |

Source: DGCI&S database

(b)and (c) : A study titled ' Normalizing India-Pakistan Trade ' by Indian Council for Research on  International  Economic  Relations  (ICRIER)  released  in  September  2013  estimated  the trade potential between India and Pakistan in the range of US$ 10.9 Billion and US$ 19.8 Billion. Another study titled 'A Glass Half Full: The Promise of Regional Trade in South Asia ' released by the World Bank in October 2018 estimates the trade potential between India and Pakistan  at  US$  36.9  billion.  The  two  studies  have  suggested  that  the  identified  trade potential remains unrealised on account of various factors, including, inter-alia, impediments in transport and transit facilities, non-tariff issues, restrictions on exports from India, etc.

The Government has made several efforts to improve trade with Pakistan.

In the 7th round of Commerce Secretary level talks with Pakistan, held in September 2012 in Islamabad,  a  roadmap  was  agreed  for  facilitating  trade,  identifying  several  actions  to  be taken  by  both  the  countries  in  a  time  bound  manner.  The  agreed  roadmap  could  not  be implemented since Pakistan did not notify the removal of trade restrictions through WagahAttari land route (the first step identified in the roadmap).

The Commerce Ministers of India and Pakistan met in January 2014 on the sidelines of the 5th  SAARC Business Leaders Conclave held at New Delhi. Both Ministers reaffirmed the commitment of their Governments to expeditiously establish normal trading relations and in this  context  to  provide  Non-Discriminatory  Market  Access  (NDMA),  on  a  reciprocal  basis. Both sides decided  to intensify and  accelerate the process  of trade normalisation, liberalisation and facilitation and to implement the agreed measures.

In  the  meeting  between  Prime  Ministers  of  India  and  Pakistan  on  27th  May  2014,  India stated that the two countries could move immediately towards full trade normalisation on the basis of September 2012 roadmap worked out between the Commerce Secretaries of both countries.

No bilateral trade meeting between India and Pakistan has taken place since then.

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