Illegal Trade Volume between India and Pakistan: Legal Options and Opportunities

Abstract

This research paper provides a critical analysis of South Asia where India and Pakistan are two major countries. However, the normal trade between the two countries was suspended for a long time. An important analysis begins with the illegal trade between Pakistan and India and outlines some legal options and legal trade opportunities. This research paper also described the status of MFN between them. This study investigates the benefits of bilateral trade between the two countries. Furthermore, bilateral trade between both countries will also result in more public revenues, since governments can earn more through custom revenues when smuggled items switch to formal trade. This paper examines the volume of illegal trade that is larger than the legal trade. In addition, it describes illegal trade routes between the two countries. The bottom line is that deeper engagement through normal bilateral trade would lead to significant welfare gains between the two countries.