Economic Cooperation and Infrastructural Linkages Between Two Punjabs: Way Ahead
Synopsis
The book has undertaken to explore the possibility and benefits of resumption of natural and historical development processes between two Punjabs. It is recognized that East Punjab is an integral part of India and West Punjab is an integral part of Pakistan . India and Pakistan are two separate and sovereign entities and the sovereignty of each one must be respected and this historical reality is recognized beyond any doubt. Within this framework, an attempt has been made to explore the possibility of infrastructure linkages between the two regions. The different parts of this study bring out very clearly that infrastructure linkages between the two Punjabs can be strengthened only when India and Pakistan try to establish closer economic, social, cultural and political ties with each other.
The present study highlights many prospective benefits, if the two countries come closer to each other and consequently, two Punjabs require certain infrastructure linkages to make this possibility a reality and usher in an era of peace and prosperity in South Asia . The actual trade between two countries was very small (US$ 251 million) compared to potential trade of US $ 6570 million in 2001. There is a large possibility of the two countries gaining on account of low prices of directly imported goods and economy in transport via live rail links reducing shipping charges, transshipment costs, storage cost, etc. There are various estimates that the two countries have lost between Rs.15,000 crore to Rs. 20,000 crore during the last five decades by not exploiting trade potentials with each other. Now, the time is ripe to convert this potential into reality.
In this context, six important issues have been selected to examine the possibility of infrastructure linkages between the two Punjabs. They are: energy; extension services and marketing in agriculture; transport, communication and logistics; credit and banking infrastructure; health sector; and education. These sectors have been developed and shaped within the overall policy framework of the two countries and have several points of commonality and difference.
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The present study highlights many prospective benefits, if the two countries come closer to each other and consequently, two Punjabs require certain infrastructure linkages to make this possibility a reality and usher in an era of peace and prosperity in South Asia . The actual trade between two countries was very small (US$ 251 million) compared to potential trade of US $ 6570 million in 2001. There is a large possibility of the two countries gaining on account of low prices of directly imported goods and economy in transport via live rail links reducing shipping charges, transshipment costs, storage cost, etc. There are various estimates that the two countries have lost between Rs.15,000 crore to Rs. 20,000 crore during the last five decades by not exploiting trade potentials with each other. Now, the time is ripe to convert this potential into reality.
In this context, six important issues have been selected to examine the possibility of infrastructure linkages between the two Punjabs. They are: energy; extension services and marketing in agriculture; transport, communication and logistics; credit and banking infrastructure; health sector; and education. These sectors have been developed and shaped within the overall policy framework of the two countries and have several points of commonality and difference.
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