Thursday 26 April 2012

Trade with India doesn’t mean ignoring political issues


LAHORE: In order to promote trade between Pakistan and India, bilateral issues between the countries, like water, Siachen and Kashmir, can not be ignored.

Thought bilateral trade is vital for progress of both the countries and improvement in regional trade, efforts should also be made to find ultimate solution to the political issues between the two countries.

These views were expressed by the discussants in Jang Economic Session held on “Forthcoming Pak-India Business Conference” here on Tuesday. The participants were Dr Salman Shah, President Faisalabad Chamber of Commerce and Industry (FCCI), Muzamil Sultan, CEO Chan One Kashif Ashfaq, Chairman PIAF Sohail Lashari, Chairman Metro Group Mirza Imtiaz, and Chairman Pakistan Agriculture Scientist Association Jamshad Cheema. The event was hosted by Sikindar Hameed Lodhi and Intikhab Tariq.

Dr Salman Shah suggested prioritizing tourism sector in bilateral trade with India, followed by trade and investment. He said trade between ASEAN member countries had reached 10 per cent of their GDP while Pakistan and India were far behind in this regard. He said Pakistan would get a big Indian market with free trade but there was also a downside of the free trade between the two countries.

Presently, only 10 Pakistani trucks crossed over to India while more than 100 Indian trucks arrived here in the country, he said, fearing that the decision on bilateral trade could not be made in a haphazard manner. He said India was improving ties with Pakistan the US pressure while Pakistan should not allow it access to the Central Asian markets until long lasting issues of Kashmir, Siachen, Sir Creek and water were resolved.

Muzamil Sultan said that Pakistan had diverted its attention for promotion of regional trade with India and China market after it was kicked out from Europe and US. He said Punjab would benefit a lot from bilateral trade with India, and Pakistan would get around one billion dollars textile market in the country. Terming India a clever partner, he said Pakistan should make calculated moves. If Pakistan had decided to follow the US orders, it should purchase electricity from India as it was unable to buy it from Iran due to the US threat of imposition of sanctions on Pakistan.

Kashif Ashfaq said that bilateral trade had both pros and cons as Pakistani agriculture and pharmaceutical sectors would face setback from it while textile sector would be a beneficiary from the move. He said Pakistani textile sector products had good demand in India as Pakistan was better than India in home textile, lawn and cotton while India had edge in apparel sector and cottage industry.

Sohail Lashari said the Indian establishment was not different from the Pakistan establishment and it believed that its survival depended on enmity with Pakistan. Therefore, he maintained, confusing trade with peace in this situation was only a dream as trade would not bring peace. Mirza Imtiaz said Aman Kia Asha was delivering good results which would lead to increase in the bilateral trade. He said Pakistani industry was not afraid of trade with India as Pakistan imports were around $40 billion and they would not increase after trade with India. He said Pakistan auto sector was protected and, after trade with India, it would get cheaper spare parts which were being imported at around 40 to 50 per cent duty. He called for improvement in the role of National Tariff Commission. He said Pakistan was investment-friendly country as compared to India, despite all crises.

Jamshad Cheema said only those countries progressed which had given importance to regional trade. He said regional trade had trickle down effect on neighboring economies by technology transfers, product development and reduction in freight charges. He said that price differential on agriculture inputs imported from China as compared to the US and the UK was more than 90 per cent, but now the cost from China was also growing. Thus, in such a scenario, there is a need to move towards India, he said.

Agriculture inputsí cost in India was 60 per cent lesser than in Pakistan, he said, adding that India was working in production enhancement techniques as well while Pakistan was facing value addition, yield enhancement and branding issues.

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