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


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

Authors: Irfan Ahmed & Javeria Shabbir

The Round Table: The Commonwealth Journal of International Affairs, 2014

Click here for complete paper.