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This study aims to examine the possible gains and challenges for the enhancement of bilateral trade ties between India and Pakistan. It is interested specifically in analyzing and deliberating an attempt to identify the key challenges and bottlenecks in cross-border trade.

This paper offers in-depth case study of trade between India and Pakistan using time-series data and through various stake holders' interviews. As further discussed in the paper, the data investigation and interviews highlight impediments in India–Pakistan trade from trade policy to other policies involved in this process.

Based on time series data and stakeholders’ interviews, the study concludes that poor trade logistics and abysmal transport infrastructure, high tariffs and non-tariff measures, lengthy customary procedures, heavy import duties, port restrictions, lack of appropriate storage facilities, strict visa regime, financial transaction barriers and lack of telecommunication facilities are the major challenges in the way of regional trade.

The study proposes some key reforms and policy measures to boost the formal trade to minimize the trade obstacles such as public–private partnerships and inclusion of private sector in a joint trade commission to strength the business relations between the two countries.