Call to address traders’ concerns before MFN status to India

LAHORE: Bilateral Indo-Pak trade will benefit both the countries if the trade is done on fair grounds. Though consultations on giving the Most Favored Nation (MFN) status to India are underway, the country will not get the status unless it addresses Pakistani traders and businessmenís concerns.
India gave the MFN status to Pakistan years ago but it in fact did not remove the non-tariff barriers, hence the status was unable to boost trade between the countries. These views were expressed by discussants at the Jang Economic Session on ëIs the MFN status to India unavoidable for Pakistan?í held here.
The discussants were renowned economist Dr Rafique Ahmed, SAARC Chamber of Commerce and Industry vice-president Iftikhar Ali Malik, Federation of Pakistan Chamber of Commerce and Industry (FPCCI) former vice president Mian Muhammad Idrees, Pakistan Pharmaceutical Manufacturers Association (PPMA) vice-chairman Shahzab Akram and Farmers Associate of Pakistan (FAP) director Abad-ur-Rehman. The event was jointly hosted by Sikindar Hameed Lodhi and Intikhab Tariq.
Dr Rafique Ahmed said that the history of Indo-Pak relations was very strange. Trade always benefits the public if it is done on fair grounds but India always cheated Pakistan, he said, adding that successful bilateral trade was not possible until political and other issues related to Kashmir and water were resolved.
He said world bilateral examples could not be applied on Indo-Pak trade relations. He said India had ruling mentality while it had given the MFN status to Pakistan on papers only while completely using non tariff barriers for its benefits. He said strong Indian economy could create difficulties for Pakistan trembling economy. He said India followed the micro level studies before making trade related decisions while Pakistan was far behind in this regard. He said sovereignty of Pakistan was vital. He said incomplete preparation on the Pakistan side to give MFN status would further put the country in trouble.
Iftikhar Ali Malik said Pakistan - rather than importing costly items from Europe ñ should go to India for cheaper and quality stuff. He said it was a fact that Pakistan could not stop transit trade of any country, calling for take steps to make the neighboring country a friend.
He said Pakistan was unable to increase it agriculture yield while India and Thai Land had increased their rice productivity and captured world rice market. He said economist panel of both countries would discuss MFN status in next month, after which businessmen and secretaries level meetings would be held.
Mian Muhammad Idrees said the MFN status to India would also benefit Pakistan, adding that Indian and Chinese economies were growing and Pakistan could not afford to remain aloof. He said MFN status to India would create competition sprit among Pakistaniís producers and traders. He said closing trade doors was not beneficial for Pakistan. He said Indian support was crucial to expand Pakistaniís chemical base. All leading manufacturing companies of world were working in India and Pakistan could get modern and reliable technology form it. He said trade relations would get stronger by land and rail routes, suggesting earning revenue form trade corridor.
Shahzab Akram said that friendship and trade was always two-way traffic and MFN status to India without proper homework would destroy Pakistanís economy. He said pharmaceutical sector of Pakistan was exporting products to 84 countries and providing employment to 2.5 million people while Pakistan stood at 7th position and India at 20th in world. He said only one per cent was fake medicines in Pakistan while India was on top of fake medicines, hence the latter was unable to make its repute in the world market. He called for consultations with pharmaceutical sector before giving MFN status to India.
Abad-ur-Rehman said bilateral trade would be increased in coming future, stressing the need to be prepared for that. He said India had given 50 per cent subsidy on fertilizer and 70 to 90 per cent on water to its farmers while Pakistan was imposing taxes on its farmers. Pakistan would lose its Afghanistan and Central Asian markets by opening trade corridor and giving the MFN status to India.