Pakistan-India Trade:

Kalpana Kochhar and Ejaz Ghani
currency), cumbersome paper work, and generally more issues of
trade and transport facilitation in Pakistan.
Table 2 presents a list of impediments to India-Pakistan trade.
Deeper cooperation between India and Pakistan can potentially result in
significant reductions of these barriers.
Trade in the region is constrained by poor infrastructure, congestion,
high costs, and lengthy delays. These problems are particularly severe
at India-Pakistan border crossings.
The World Bank Logistics Performance Index (LPI) is based on a
worldwide survey of operators on the ground (global freight forwarders
and express carriers), providing feedback on the logistics “friendliness”
of the countries in which they operate and those with which they trade.
They combine in-depth knowledge of the countries in which they operate
with informed qualitative assessments of other countries with which
they trade, as well as the experience of the global logistics environment.
Infrastructure stands out as the chief driver of LPI progress. The quality
figure 4: Poor logistics deter engagement in regional and
Global Production sharing
Ease of Doing Business and Logistics Performance Index Ranking (2010)
200
180
160
140
120
100
80
60
40
20
0
Ease of Doing Business Rank* Trading Across Borders* LPI Index#
Afghanistan Bangladesh Bhutan India Maldives Nepal Pakistan Sri Lanka
Source: World Bank, Doing Business 2012 and World Bank, Logistics Performance Index (LPI).
*=184 countries, #=155 countries.
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