Recall, that while India bestowed Most Favoured Nation (MFN) status on Pakistan under the aegis of the World Trade Organization (WTO), Pakistan has to date failed to reciprocate. It’s very clear that India has made a huge effort to reach out to Pakistan and work to improve the bilateral relationship. What is more, despite receiving injections of US financial support, the Pakistan economy seems to lurch from crisis to crisis. Given that the Pakistan economy is perpetually on life support and benefits disproportionately from its limited ties with India, economic logic suggests that Pakistan has much more to gain from normalizing economic relations than India. The China Pakistan Economic Corridor (CPEC) will bring limited and uncertain gains for Pakistan’s economy but most certainly will saddle the country with a large debt burden.

Source: Economic Times February 25, 2018 17:36 UTC