CPEC and Pakistan-India Economic Integration: Prospects and Challenges

Abstract

The persisting economic advancements in Asia indicate Asia’s rise in the middle of this century. In this connection, China’s initiative about CPEC will play pivotal role to upsurge the economies in Asia and beyond. In South Asia, India and Pakistan are traditional rivals since their inception and are reluctant in establishing trade relations. However, CPEC offers them the concurrence for economic integration to upraise their economies. The two states might be convinced to trade by addressing their concerns i.e. high tariffs, trade bans, quota restrictions, customs clearance, issuance of visas, conducive financial services, opening new entry and exit points and by providing access to their markets on reciprocal basis. By providing transit trade facility to each other, both the states will exacerbate their trade activities within and outside the region. Pak-India economic integration will lead towards win-win position and will bring prosperity that will have a spill over impact in maintaining peace between them. This paper aims to highlight contours of Pak-India economic integration from the prism of CPEC along with perceived challenges.