ISLAMABAD – The deep-rooted rivalry between India and Pakistan is taking ahuge toll on their economies, so much that a recent report by World Bankstates that their annual trade could be $37 billion instead of the present$2 billion.

World Bank’s report states that trade between India and Pakistan, the twolargest economies of South Asia, can grow up to $ 36.9 billion from $ 2.1billion if both countries set aside their differences and barriers to trade.

The report, which was presented last week, urged the South Asian rivals tocooperate instead of remaining in conflict, as it is the world’s leasteconomically integrated region. It is the region that contains 40% of theworld’s stunted children and 33% of world’s impoverished populace.

The World Bank report further states total “intra-regional” trade in goodscan jump up to $67 billion from $23 billion given the South Asian nationsremove the tariffs and non-tariff barriers related to trade andpeople-to-people contact. Authors of the report also maintain that “tradeliberalization in South Asia has not been smooth”. In fact, many countrieshave increased the tariffs and restricted inter-regional trade further.