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WB says Pakistan, India not utilizing trade potential to the fullest

02:25 PM | 6 Dec, 2018
WB says Pakistan, India not utilizing trade potential to the fullest
WASHINGTON - A World Bank report has highlighted that the trade between Pakistan and India is worth a little over $2 billion, though it could be as high as $37bn.

The report, “Glass Half Full: Promise of Regional Trade in South Asia”, released on Wednesday says the current trade between the two countries is much below its full potential but could only be harnessed if both countries agreed to scrap artificial barriers.

It also mentions four of the critical barriers to effective integration as tariff and para-tariff barriers to trade, complicated and non-transparent non-tariff measures, a disproportionately high cost of trade, and trust deficit.

The bank also estimated Pakistan’s potential trade with South Asia at $39.7bn against the actual current trade of $5.1bn.

Highlighting the main points of the report, lead economist and author of the document, Sanjay Kathuria told newsmen that it was his belief that trust promotes trade, and trade fosters trust, interdependency and constituencies for peace.

"In this context, the opening of the Kartarpur corridor by governments of Pakistan and India would help minimise trust deficit," he added.

Kathuria said such [Kartarpur corridor] steps will boost trust between the two countries suggesting that the two countries should start with specific products facilitation in the first phase.

"Pakistan had least air connectivity with South Asian countries, especially India. Pakistan has only six weekly flights each with India and Afghanistan, 10 each with Sri Lanka and Bangladesh and only one with Nepal, but no flight with the Maldives and Bhutan," he observed.

Drawing a comparison, the WB official said India has 147 weekly flights with Sri Lanka, followed by 67 with Bangladesh, 32 with the Maldives, 71 with Nepal, 22 with Afghanistan and 23 with Bhutan.

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The report recommends ending sensitive lists and para tariffs to enable real progress on the South Asia Free Trade Agreement (Safta) and stresses a multi-pronged strategy to remove non-tariff barriers, focusing on information flows, procedures, and infrastructure.

"Reducing policy barriers, such as eliminating the restrictions on trade at the Wagah-Attari border, or aiming for seamless, electronic data interchange at border crossings, will be major steps towards reducing the very high costs of trade between Pakistan and India," Kathuria asserted.

The official contended that the costs of trade are much higher within South Asia compared to other regions and the average tariff in South Asia is more than double the world average.

He says in Pakistan, nearly 20pc of its imports from, and 39pc of its exports to, South Asia fall under sensitive lists - goods that are not offered concessional tariffs under Safta.

World Bank Country Director for Pakistan Illango Patchamuthu said Pakistan is sitting on a huge trade potential that remains largely untapped.

“A favorable trading regime that reduces the high costs and removes barriers can boost investment opportunities that are critically required for accelerating growth in the country,” he said.

World Bank’s Director Macroeconomics, Trade and Investment Caroline Freund said Pakistan’s frequent use of tariffs to curb imports or protect local firms increases the prices of hundreds of consumer goods, such as eggs, paper and bicycles.

"Pakistan needs to promote export promotion policies to ensure sustainable growth," Freund added.

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Pakistani rupee inches up against US dollar, Euro, Pound, Riyal and Dirham; Check latest rates here

Pakistani rupee witnessed upward trajectort against US dollar and other currencies amid positive economic cues.

Dollar Rate in Pakistan Today

On Wednesday, the US dollar moved down and was being quoted at 283.7 for buying and 286.75 for selling.

Euro remained stable at 309 for buying and 312 for selling. British Pound rate increased to 361 for buying, and 364 for selling.

UAE Dirham AED dropped to 77.6 whereas the Saudi Riyal rate stands at 76.

Today's currency exchange rates in Pakistan - 6 December 2023

Source: Forex Association of Pakistan. (last update 09:00 AM)

Currency Symbol Buying Selling
US Dollar USD 283.7  286.75 
Euro EUR 309  312 
UK Pound Sterling GBP 361  364 
U.A.E Dirham AED 77.6 78.3
Saudi Riyal SAR 76 76.8
Australian Dollar AUD 187.72 188.22
Bahrain Dinar BHD 758.58 766.58
Canadian Dollar CAD 209 211
China Yuan CNY 39.93 40.33
Danish Krone DKK 41.41 41.81
Hong Kong Dollar HKD 36.49 36.84
Indian Rupee INR 3.42 3.53
Japanese Yen JPY 1.49 1.56
Kuwaiti Dinar KWD 923.13 932.13
Malaysian Ringgit MYR 60.97 61.57
New Zealand Dollar NZD 175.89 177.89
Norwegians Krone NOK 26.68 26.98
Omani Riyal OMR 740.01 748.01
Qatari Riyal QAR 78.36 79.06
Singapore Dollar SGD 211 213
Swedish Korona SEK 27.45 27.75
Thai Bhat THB 8.09 8.24

Gold price sees major drop in Pakistan; Check today gold rates - 6 Dec 2023

KARACHI – Gold prices in the local market continue to decline in line with the international market.

Gold Rates in Pakistan Today - 6 December 2023

On Wednesday, the price of a single tola of 24-karat gold stands at Rs219,400 and 10 grams of 24k gold costs Rs188,100. 

Each tola for 24 karat is Rs216,700, 22 Karat is Rs198,640, and 21 karat rate per tola is Rs189,613 and 18k gold rate is Rs162,525.00 for single tola.

In the global market, the precious metal moved down, and hovers around $2023 per ounce after drop of around $10.

Today Gold Rate in Pakistan

City Gold Silver
Lahore PKR 219,400 PKR 2,625
Karachi PKR 219,400 PKR 2,625
Islamabad PKR 219,400 PKR 2,625
Peshawar PKR 219,400 PKR 2,625
Quetta PKR 219,400 PKR 2,625
Sialkot PKR 219,400 PKR 2,625
Attock PKR 219,400 PKR 2,625
Gujranwala PKR 219,400 PKR 2,625
Jehlum PKR 219,400 PKR 2,625
Multan PKR 219,400 PKR 2,625
Bahawalpur PKR 219,400 PKR 2,625
Gujrat PKR 219,400 PKR 2,625
Nawabshah PKR 219,400 PKR 2,625
Chakwal PKR 219,400 PKR 2,625
Hyderabad PKR 219,400 PKR 2,625
Nowshehra PKR 219,400 PKR 2,625
Sargodha PKR 219,400 PKR 2,625
Faisalabad PKR 219,400 PKR 2,625
Mirpur PKR 219,400 PKR 2,625

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