RAMIFICATION OF SOUTH ASIA FREE TRADE AGREEMENT ON MAJOR ECONOMIC INDICATORS OF PAKISTAN

Free trade area is not simply an expression of complex interdependence, but a platform for profound cooperation, self-actualization, and possibly of fostering material growth amongst member states. The purpose of this study is to examine extent to which South Asia Free Trade Agreement (SAFTA) contributes to Pakistan's GDP in terms of import and export. This is done bearing in mind trade done bilaterally amongst South Asian states outside the FTA. In comparison with other FTA, would it be justified to say that SAFTA reduces the cleavages, foster connectivity and increases human and resources mobility? Methodologically, the paper uses descriptive statistics sourced from the World Bank Development Indicators, International Trade Center and Pakistan Bureau of Statistics, with a timeline of 2006 to 2015. Empirical results reflected trade was below expectations between Pakistan and SAFTA members (Pakistan, India, Afghanistan, Bangladesh, Sri Lanka, Nepal, Maldives and Bhutan). However, same data indicated an encouraging commercial relation between Pakistan and Afghanistan, Bangladesh, India and Sri Lanka on one hand, while certain logistic bottleneck impairs trade between Islamabad and Maldives, Bhutan, and Nepal. The growth in GDP is marginally low in comparison with member states. The reflections generated from the data gives a convincing perspective on the extent to which SAFTA will have to catch-up with a similar agreement like the European Free Trade Agreement