Speaker Profile: Dr Asad Sayeed

Dr. Asad Sayeed is a Ph.D in Economics from Cambridge University. His is currently Director and senior researcher at the Collective of Social Science Research, a Karachi based research and consulting organization. He is a member of the Panel of Economists constituted by the Planning Commission, Government of Pakistan and was also a member of the Task Force on Health Policy constituted by the Federal Government in May 2008. He has published widely in local and international journals and is a frequent contributor to the Pakistani press.

His areas of interest include Political Economy of Growth and Structural Change, Industrial Policy in Developing Countries, Labour Market Dynamics in Developing Countries, Social Protection, Health Economics, Macroeconomic Policy with special reference to growth, debt management and poverty alleviation, Political Economy of Corruption.

ABSTRACT

Is There a Future to Indo-Pak Economic Relations?

South Asia remains one of the least economically integrated regions in the world. One central reason for this occurrence is the low level of bilateral trade between the two largest countries in the region, i.e. India and Pakistan. Geo-political tensions between the two countries lie at the heart of low levels of bilateral trade and the absence of cross border investment; particularly since both countries are ‘open’ trade regimes with the rest of the world – under WTO rules- and seek foreign investment from the rest of the world also.

This paper outlines the benefits of regional economic integration and the relative gains from trade that can occur for both countries if economic relations are ‘normalised.’ Not only will this strengthen economic cooperation within South Asia but will also give strength to the South Asian region in lobbying its case in cross-regional and multilateral trade and investment rule making. The paper also argues that legitimate geo-political contentions between India and Pakistan will not necessarily be compromised as a result of greater economic integration; only their pursuit will not be at the cost of holding economic progress hostage in the two countries and by extension in the region as a whole.