The Changing Face of Pakistan’s Economic Relations with India and Bangladesh: Prospects and Challenges

Abstract

Historic links, economic interactions and geostrategic interests make Pakistan, India and Bangladesh vital to one another. The geographic conditions, economic interactions, trade links, ethnocultural proximity and historical linkages provide a plethora of opportunities for close, cordial and cooperative relations among the three countries. This study discusses the current rebirth of economic relations between Pakistan and India and the shift of Pakistani investors to Bangladesh. The extant literature presents a profound discussion on the political, geographical, historical, economic and legal relationships between these countries. However, this paper addresses some other theoretical and economic aspects, such as investors’ behaviour towards investment, and financial integration, which are imperative where economic and trade ties are concerned. The paper employs the archival method of reviewing related literature (theoretical and empirical) and organising and presenting some questions for future investigation.

Key Words:

• Pak-India trade
• Pak-Bangla trade
• investors’ behaviour
• financial integration
• prospects and challenges
• Mohammed Ali Jinnah
• Pakistan
• India
• Bangladesh
• World Trade Organisation
• South Asia Free Trade Area

Acknowledgements

The authors are very grateful to Martin Harper, Cristina Lungu, the Editor and two anonymous reviewers for their helpful feedback.

Notes

1. The Works of Alexander Pope, Esq. With Notes and Illustrations By Himself and Others, Vol. 5, pp. 141.

2. Mohsin Khan, ‘India–Pakistan trade: The MFN breakthrough’, AFPAK Daily Brief, Friday 4 November 2011.

3. Tridivesh S. Maini and Manish Vaid, ‘Indo-Pak Trade, A Visit to Historical Relations’, Briefing Paper No. 5/2012. CUTS International.

4. The Daily Star, Source: http://www.defence.pk/forums/bangladesh-defence/31088-bangladesh-pakistan-economic-relations.html#ixzz2czwKy0Us