<?xml version="1.0" encoding="UTF-8"?>
<rss xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:wfw="http://wellformedweb.org/CommentAPI/" xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:sy="http://purl.org/rss/1.0/modules/syndication/" xmlns:slash="http://purl.org/rss/1.0/modules/slash/" version="2.0"><channel>
                        <title>The Express Tribune</title>
                        <atom:link href="https://tribune.com.pk/feed/indiamfn" rel="self" type="application/rss+xml"/>
                        <link>https://tribune.com.pk/feed/indiamfn</link>
                        <description>The Express Tribune keeps you up to date with all the latest happenings from Pakistan and across the world!</description>
                        <lastBuildDate>Sun, 31 May 26 16:24:12 +0500</lastBuildDate>
                        <language>en-US</language>
                        <sy:updatePeriod>hourly</sy:updatePeriod>
                        <sy:updateFrequency>1</sy:updateFrequency>
                        <generator>https://laravel.com/</generator><item>
			<title>Senate question hour: Govt blames India over delayed MFN status</title>
			<link>https://tribune.com.pk/story/516965/senate-question-hour-govt-blames-india-over-delayed-mfn-status</link>
			<comments>https://tribune.com.pk/story/516965/senate-question-hour-govt-blames-india-over-delayed-mfn-status#comments</comments>
			<pubDate>Thu, 07 Mar 13 05:14:06 +0500</pubDate>
			<dc:creator>
				<![CDATA[azam.khan]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=516965</guid>
			<description>
				<![CDATA[Commerce ministry to submit case to Cabinet for complete normalisation of trade relations.]]>
			</description>
			<content:encoded>
				<![CDATA[Islamabad has held New Delhi responsible for the delay in the process of granting Most Favoured Nation (MFN) status to India.


New Delhi is reluctant to remove non-tariff bearers (NTBs), and consequently the non availability of a level playing field to Pakistani exporters has delayed the granting of MFN status to India, said Commerce Minister Makhdoom Amin Fahim in a written reply during a question hour session of the upper house of Parliament on Wednesday.

The commerce ministry was unable to meet the deadline of December 31, 2012, of granting the MFN status, as it was consulting other ministries and private sector stakeholders to assess and evaluate the level playing field enjoyed by Pakistani exports to India, and to resolve issues of non-tariff barriers being faced by Pakistani exporters and market access of Pakistani products to India.

The ministry will now submit the case to the Cabinet for complete normalisation of trade relations with India in due course, the written reply read. The decision to grant MFN status to India was taken by the Cabinet in its meeting held on November 2, 2011.

Meanwhile, State Minster for Foreign Affairs Nawabzada Malik Hammad said that due to Indian rigidity, the Sir Creek border issue has not been resolved either.

He also revealed that talks over the issue have not been held during the last five years.



Responding to a related question, the minister said that they do not have any reports on exploratory activities being carried out by India in the disputed area. The area is under regular surveillance by the Pakistan Maritime Security Agency and Pakistan Navy, he said.

Citing the sensitivity of the issue, Senate Chairman Syed Nayyar Hussain Bokhari referred the question to relevant authorities for a comprehensive reply.

Published in The Express Tribune, March 7th, 2013.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/516965-Fragilillustrationjamalkhurshid-1362633192/516965-Fragilillustrationjamalkhurshid-1362633192.JPG" class="featured_image"/>
            </image>
			</item><item>
			<title>MFN status likely to be granted to India next month</title>
			<link>https://tribune.com.pk/story/498919/mfn-status-likely-to-be-granted-to-india-next-month</link>
			<comments>https://tribune.com.pk/story/498919/mfn-status-likely-to-be-granted-to-india-next-month#comments</comments>
			<pubDate>Fri, 25 Jan 13 05:51:45 +0500</pubDate>
			<dc:creator>
				<![CDATA[zahid.gishkori]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=498919</guid>
			<description>
				<![CDATA[Junior minister’s statement contradicts media reports that Islamabad might delay process.]]>
			</description>
			<content:encoded>
				<![CDATA[In an attempt to boost Indo-Pak business to a proposed six billion dollars, Pakistan is most likely to grant most favoured nation (MFN) status to India next month, a junior commerce minister told the Senate on Thursday.


Minister of State for Commerce Abbas Khan Afridi’s statement contradicts media reports that Islamabad might delay awarding MFN status to India, as the government was facing pressure from various stakeholders, particularly industrialists associated with the textile industry.

Several lawmakers previously told parliament and the media, that the move to grant MFN-status to New Delhi had been delayed so that the government could consult industries that have expressed reservations in this regard.

Islamabad has already missed the December 31 deadline to grant MFN status to New Delhi, as well as putting an end to the Negative List regime.

Responding to a question posed by Pakistan Muslim League - Quaid (PML-Q) Senator Najma Hameed, State Commerce Minister Abbas Afridi informed lawmakers that the government is set to implement this decision next month.

“We want this credit [of granting MFN status to India]. We are heading towards the final stage now,” said Afridi.

“MFN status will be awarded to India by prioritising state’s interests – taking all stakeholders on board in Pakistan,” he added.

In her question, Senator Hameed sought the progress made on granting MFN status to India as well as the benefits that Pakistan wanted to achieve after awarding this new status.

Responding to the query, Federal Commerce Minister Makhdoom Amin Fahim informed the house that the issue is moving in a positive trajectory. He clarified that after awarding this status to India, New Delhi will have no excuse not to promote business in the region.

New Delhi has been repeatedly accusing Pakistan of not fulfilling the criteria set by the World Trade Organization (WTO).

“At various multilateral economic forums, India would not be able to say that Pakistan is being non-compliant to WTO agreements, in terms of holding back MFN status from a WTO member state,” Fahim said.

The policy of new visa regime between the regional giants has already been implemented, where both the countries signed three agreements in September last year, for countering the non-tariff barrier issues faced by Pakistani exporters, stated the minister in his written reply to the Senate.

Explaining the benefits of MFN, Fahim said trade costs will be reduced due to the availability of raw materials, machinery firms have production/manufacturing facilities in India which will subsequently lower costs for Pakistani manufacturers.


Published in The Express Tribune, January 25th, 2013.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/498919-Fragilillustrationjamalkhurshid-1359093083/498919-Fragilillustrationjamalkhurshid-1359093083.JPG" class="featured_image"/>
            </image>
			</item><item>
			<title>Foreign office’s statement: ‘Committed to better trade relations’</title>
			<link>https://tribune.com.pk/story/498921/foreign-office%e2%80%99s-statement-%e2%80%98committed-to-better-trade-relations%e2%80%99</link>
			<comments>https://tribune.com.pk/story/498921/foreign-office%e2%80%99s-statement-%e2%80%98committed-to-better-trade-relations%e2%80%99#comments</comments>
			<pubDate>Fri, 25 Jan 13 05:47:53 +0500</pubDate>
			<dc:creator>
				<![CDATA[our.correspondent]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=498921</guid>
			<description>
				<![CDATA[Foreign ministry spokesperson says necessary steps being taken to implement decision on granting MFN status to India.]]>
			</description>
			<content:encoded>
				<![CDATA[Pakistan said on Thursday that it was committed to normalising trade relations with India, despite recent border clashes that had threatened to unravel the peace process between the two nuclear armed countries.


Foreign ministry spokesperson Moazzam Ali Khan told reporters that authorities were taking necessary steps to implement the decision on granting most favoured nation (MFN) status to India.

“The government remains committed to its decision to have normal trade relations with India and the concerned authorities have been instructed to take necessary steps to implement the decision,” Khan said.

His statement comes amid fears that the process of normalisation may come to a halt between Pakistan and India after recent tensions over the exchange of fire at the Line of Control (LoC) in the disputed Jammu and Kashmir region.

The spokesperson described as “non-serious and ridiculous” recent reports that the Indian authorities distributed pamphlets among the people of occupied Kashmir to warn them of a possible nuclear war with Pakistan.


Published in The Express Tribune, January 25th, 2013.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/498921-indiapaktrade-1359092816/498921-indiapaktrade-1359092816.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Pakistan likely to grant MFN status to India next month, Senate told</title>
			<link>https://tribune.com.pk/story/498503/pakistan-likely-to-grant-mfn-status-to-india-next-month-senate-told</link>
			<comments>https://tribune.com.pk/story/498503/pakistan-likely-to-grant-mfn-status-to-india-next-month-senate-told#comments</comments>
			<pubDate>Thu, 24 Jan 13 12:44:17 +0500</pubDate>
			<dc:creator>
				<![CDATA[zahid.gishkori]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=498503</guid>
			<description>
				<![CDATA[Minister of State for Commerce says the process of granting the status is in its final stage now.]]>
			</description>
			<content:encoded>
				<![CDATA[Pakistan is likely to grant Most Favoured Nation (MFN) status to India next month, in an attempt to boost Indo-Pak business to $6-7 billion, Minister of State for Commerce Abbas Khan Afridi told the Senate on Thursday.

Afridi’s statement rebuffed media reports that Islamabad may delay awarding MFN status to India as the government was facing pressure from various stakeholders – particularly from industrialists associated with the textile industry in Pakistan. Several lawmakers have also reiterated that the move to grant MFN-status to New Delhi had been delayed so that the government could hold consultations with industries that have expressed their reservations.

Responding to a question posed by Pakistan Muslim League-Quaid (PML-Q) Senator Najma Hameed, Afridi informed the lawmakers that the government is committed to implementing its decision by next month.

“We want this credit [of granting MFN status to India]. We are heading towards the final stage now,” said Afridi. He, however, explained that “MFN status will be awarded to India by prioritising state interests, taking all stakeholders on board in Pakistan.”

Islamabad has already missed a December 31 deadline to give MFN status to New Delhi as well as to end a negative list regime and trade.

Senator Hameed had sought the progress made to grant MFN status to India as well as the benefits that Pakistan wanted to achieve after awarding this new status. In response to it, Federal Minister for State Makhdoom Amin Fahim informed the House that positive progress has been made on the issue.

Fahim also clarified that after awarding this status to India, New Delhi will have no excuse against promoting business in the region. New Delhi has been accusing Pakistan that it’s not fulfilling the criteria set by World Trade Organisation (WTO).

“At various multilateral economic forums, India would not be able to use the argument of Pakistan being non-compliant to World Trade Organisation agreements in terms of holding back MFN status from WTO member state,” he said.

The policy of new visa regime between the two nations has already been implemented with three agreements signed in September last year for countering the non-tariff barrier issues being faced by Pakistani exporters, stated the minister in his written reply to the Senate.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/498503-Fragilillustrationjamalkhurshid-1359031208/498503-Fragilillustrationjamalkhurshid-1359031208.JPG" class="featured_image"/>
            </image>
			</item><item>
			<title>Fazl wary of MFN status to India</title>
			<link>https://tribune.com.pk/story/495556/fazl-wary-of-mfn-status-to-india</link>
			<comments>https://tribune.com.pk/story/495556/fazl-wary-of-mfn-status-to-india#comments</comments>
			<pubDate>Fri, 18 Jan 13 04:10:21 +0500</pubDate>
			<dc:creator>
				<![CDATA[rana.tanveer]]>
			</dc:creator>
			<category><![CDATA[Punjab]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=495556</guid>
			<description>
				<![CDATA[Fazl says decision could result in a failure if unrest around LoC continues.]]>
			</description>
			<content:encoded>
				<![CDATA[Chief of his own faction, Jamiat Ulema-e-Islam-Fazl (JUI-F), Maulana Fazlur Rehman said on Thursday that granting Most Favoured Nation (MFN) status to India could be stuck in the doldrums, if unrest along the Line of Control (LoC) exacerbates.


Speaking to the media at a South Asia Free Media Association (Safma) function, Fazl said that the unrest along the de-facto border should be resolved through dialogue, as the people of Kashmir have benefitted immensely from the ceasefire.

“It is clear that we want better relations with all neighbouring countries, including India, and prefer dialogue over war,” he said.

Fazl said that South Asia benefits from good relations between India and Pakistan.

Fazl was of the opinion, however, that Pakistan can face problems if it signs a trade agreement with India, as the regional giant can blackmail Pakistan by building dams and stop the flow of water from rivers towards the neighbour.

On Dr Tahirul Qadri

Responding to questions regarding Minhaj-ul-Quran International (MQI) chief Dr Tahirul Qadri’s sit-in in Islamabad, Fazl said that such protests only create unrest.



The JUI-F chief said that Dr Qadri’s intentions are not clear: even though he wants to hold dialogue with President Zardari, he has termed him a “former president”.

Fazl added that the government should not repeat the Lal Masjid incident, and deal with the protesters through peaceful means.

“JUI-F had organised protests of about 1.5 million participants and have the ability to organise similar processions in Islamabad too,” he said.

Fazl said that if Dr Qadri believes in the powers of the courts, he should press for court reforms, instead of giving the impression that the army and the courts are supporting him.

He wondered why the MQI chief was directing his demands to a government that is going to be dissolved within the next few months. He said such a movement should have been initiated two years back or when the National Reconciliation Order was introduced.

Published in The Express Tribune, January 18th, 2013.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/495556-MaulanaFazlurRehman-1358482092/495556-MaulanaFazlurRehman-1358482092.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>‘Pakistan has reservations over granting India MFN status’</title>
			<link>https://tribune.com.pk/story/492108/pakistan-has-reservations-over-granting-india-mfn-status</link>
			<comments>https://tribune.com.pk/story/492108/pakistan-has-reservations-over-granting-india-mfn-status#comments</comments>
			<pubDate>Thu, 10 Jan 13 11:02:49 +0500</pubDate>
			<dc:creator>
				<![CDATA[web.desk]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=492108</guid>
			<description>
				<![CDATA[Jalil Abbas Jilani says he will speak about reserv­ations with his Indian counte­rpart in coming days.]]>
			</description>
			<content:encoded>
				<![CDATA[Foreign Secretary Jalil Abbas Jilani said Thursday that Pakistan has reservations over granting the Most Favoured Nation (MFN) status to India, Express News reported.

Speaking to the media in Islamabad, Jilani said commerce secretary-level talks will take place soon with India in which Pakistan will speak about its reservations, although he said that the federal cabinet had agreed upon granting MFN status to India.

He further said that trade between two countries was important.

The foreign secretary said that Pakistan has offered India to investigate the earlier violation of Line of Control (LoC) and that a reply was still awaited in this regard.

Jilani said that it was unfortunate that the 10-year-long ceasefire was breached.

India had claimed that Pakistan's troops killed two Indian soldiers in a cross-border attack, raising tensions between the two nuclear tipped South Asian countries.

The Indian army said the soldiers died after a firefight erupted in disputed Kashmir around noon Tuesday as a patrol moving in fog discovered Pakistani troops about 500 metres inside Indian territory.

A Pakistani senior official had said Pakistan’s director general of military operations had spoken to his Indian counterpart by telephone to deny that his troops were responsible.

Correction: An earlier version of the article incorrectly quoted Jilani as saying that he will hold talks with his Indian counter-part. The error has been rectified.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/492108-jalilabbasjilaniafp-1357814111/492108-jalilabbasjilaniafp-1357814111.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Mumbai attacks: ‘Pakistan’s response to wish list unsatisfactory’</title>
			<link>https://tribune.com.pk/story/490282/mumbai-attacks-%e2%80%98pakistan%e2%80%99s-response-to-wish-list-unsatisfactory%e2%80%99</link>
			<comments>https://tribune.com.pk/story/490282/mumbai-attacks-%e2%80%98pakistan%e2%80%99s-response-to-wish-list-unsatisfactory%e2%80%99#comments</comments>
			<pubDate>Mon, 07 Jan 13 04:49:22 +0500</pubDate>
			<dc:creator>
				<![CDATA[news.desk]]>
			</dc:creator>
			<category><![CDATA[World]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=490282</guid>
			<description>
				<![CDATA[Foreign minister says Delhi will do ‘whatever needs to be done’ for MFN status.]]>
			</description>
			<content:encoded>
				<![CDATA[India has termed Pakistan’s response to its “wish list” with regards to the 2008 Mumbai attacks “unsatisfactory” calling it “critical” to “substantive movement” in bilateral relations.

Indian External Affairs Minister Salman Khurshid said that what Islamabad has done so far in the case was “not to our satisfaction”, according to the Press Trust of India (PTI).

However, he added that he did not see Interior Minister Rehman Malik’s statements made during his India tour as a “setback” to the dialogue process.

Malik, during his visit to India, had said that the demolition of Babri Mosque was similar to the Mumbai attacks – a statement which had irked many Indian officials. Malik had later retracted his statement saying that he was only talking about inter-faith harmony.

He had also claimed that Lashker-e-Taiba (LeT) militant Abu Jundal had worked for the Indian intelligence.

“I don’t see it as a setback at all. But I do believe and (what) we all believe in this country is that dialogue will move smoothly, faster and in the right direction provided the wish list lying with Pakistan given by India as far as the Mumbai tragedy is concerned is responded to,” Khurshid was quoted as saying by PTI.

MFN status

Khurshid said his country will do whatever needs to be done to persuade Pakistan into granting it the “most favoured nation (MFN) status”.

“We believe it should have been done. We will do whatever needs to be done to persuade them that we should now be able to do it. It is not something which should be delayed indefinitely,” PTI quoted him as saying.

He added that India needs to get Pakistan back on track, according to the report.

Published in The Express Tribune, January 7th, 2013.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/490282-MumbaiattacksAFP-1357534086/490282-MumbaiattacksAFP-1357534086.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Allaying fears: President to hold meeting over MFN status to India</title>
			<link>https://tribune.com.pk/story/487811/allaying-fears-president-to-hold-meeting-over-mfn-status-to-india</link>
			<comments>https://tribune.com.pk/story/487811/allaying-fears-president-to-hold-meeting-over-mfn-status-to-india#comments</comments>
			<pubDate>Wed, 02 Jan 13 04:59:43 +0500</pubDate>
			<dc:creator>
				<![CDATA[zafar.bhutta]]>
			</dc:creator>
			<category><![CDATA[Business]]></category><category><![CDATA[World]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=487811</guid>
			<description>
				<![CDATA[Wants to end the opposition of farmers’ lobbies.]]>
			</description>
			<content:encoded>
				<![CDATA[Commerce Ministry is desperately lobbying to seek support of President Asif Ali Zardari to end the opposition of farmers’ lobbies and some other groups to grant Most Favoured Nation (MFN) status to India till January 15, 2013.


Government of Pakistan was to grant MFN status to India by December 31, 2012 by phasing out negative list of tradable goods with India, but it has been delayed due to strong opposition of farmers’ lobbies and some other stakeholders.

Sources told The Express Tribune that the president had called a meeting of high-ups of commerce ministry and Senator Sughra Imam on Wednesday in Karachi. Sughra Imam has been a big critic of open trade of agricultural goods with India under MFN status, saying that it would destroy Pakistani growers who do not enjoy farm subsidies like Indian farmers.

“Now commerce ministry wants to grant MFN status to India by January 15 and president’s help is being sought to end opposition of farmers’ lobbies and Senator Sughra Imam,” sources said, adding that Imam has been of the view that government of Pakistan should end negative list of different items in phases.



Sources said that Pakistan had already faced setback in water rights with India due to the construction of Baghlihar Dam and some other small dams like Nimobazgo.

“Commerce ministry is playing one-man show as it got the approval of cabinet to grant MFN status to India without conducting a comparative study on trade liberalisation with neighbouring country,” sources said, adding that an economist Hafeez Pasha has conducted a study with assistance of USAID after commerce ministry has finalised sensitive lists.

Commerce Ministry seems to be very ambitious to open trade with India under MFN status.

“Even commerce minister Makhdoom Amin Faheem and commerce secretary visited Lahore to meet office-bearers of Farmers Association of Pakistan to seek support over granting MFN status to India,” sources said, adding that commerce ministry had now again called a meeting with farmers on January 3.

Hafeez Pasha will give a presentation during the meeting on benefits regarding opening of trade with India under MFN status. The meeting in commerce ministry will be a follow-up of president’s meeting in Karachi to convince the farmers that they would reap benefits from this opportunity and will face no loss.

Published in The Express Tribune, January 2nd, 2013.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/487811-zardariAFPx-1357102626/487811-zardariAFPx-1357102626.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Major strides: India opens door to more trade with Pakistan</title>
			<link>https://tribune.com.pk/story/364513/major-strides-india-opens-door-to-more-trade-with-pakistan</link>
			<comments>https://tribune.com.pk/story/364513/major-strides-india-opens-door-to-more-trade-with-pakistan#comments</comments>
			<pubDate>Sat, 14 Apr 12 00:19:18 +0500</pubDate>
			<dc:creator>
				<![CDATA[shahram.haq]]>
			</dc:creator>
			<category><![CDATA[World]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=364513</guid>
			<description>
				<![CDATA[Allows, in principle, FDI from Pakistan; inaugurates second border check post at Attari.]]>
			</description>
			<content:encoded>
				<![CDATA[India, quite literally, opened the door to more trade with Pakistan on Friday.


The country not only allowed, in principle, foreign direct investment (FDI) from Pakistan but also inaugurated a second integrated check post (ICP) on the border at Attari.

“As part of the initiatives to promote trade, India has in principle agreed to allow FDI from Pakistan,” Commerce and Industry Minister Anand Sharma said after a meeting with visiting Pakistani Commerce Minister Makhdoom Amin Fahim.

Sharma said the procedures and necessary requirements for allowing investments from Pakistan were in the formulation stage and would be notified soon.

The process, however, is expected to be far from swift since it is not just a negotiation between the neighbouring countries but also among various ministries within India. India, for example, badly needs an injection of foreign investment in civil aviation, but experts say the chances of allowing Pakistani FDI in civil aviation were slim.

In addition, both countries have also agreed in principle to allow the opening of each other’s bank branches in their territories to facilitate financial transactions and ensure smooth trade.

The Reserve Bank of India (RBI) and the State Bank of Pakistan (SBP) have held several rounds of talks in this regard and a very positive situation has emerged.

“Both RBI and SBP are in favour of opening up of branches on both sides of the border,” Sharma said. This was endorsed by Fahim who said that both sides were on the same page on this issue.

Sharma added that following the proactive steps taken by Pakistan, India would also carry out a review of the ‘sensitive trade list’ during the next few months as a confidence-building measure. He also announced that an India-Pakistan Business Council will be set up soon.

Fahim said that talks were under way between the two countries on exploring opportunities of textile trade.

“We have also decided to open up negotiations in the hospitality, education and tourism sectors and experts would be constituted to work out the modalities for talks,” he said.

Second border post

The political and business leadership of Pakistan and India gathered at the Indian side of the border at Attari, near Amritsar, to inaugurate a second Integrated Check Post (ICP).

The new post would pave way for smooth flow of road traffic, provide upgraded and modern infrastructure for traders from both countries, and facilitate the people crossing the border.

Indian Home Minister P Chidambaram, Indian Punjab Chief Minister Parkash Singh Badal and his Pakistani counterpart Shahbaz Sharif accompanied Sharma and Fahim in unveiling the plaque.

Inaugurating the check post, the leaders pledged to remove all artificial barriers to trade.

The Indian Punjab chief minister called upon Pakistan to extend its approved list of 137 items traded from Wagah-Attari land route, and bring it at par with the 6,000 items being traded at present through the Mumbai- Karachi sea route.

Badal also urged the governments to extend the rail tracks to the newly-established ICP to further boost trade.

He asked the two countries to relax visa regimes, at least for the elected representatives and pilgrims visiting shrines. He also urged Pakistan to allow transit of goods to Afghanistan.

The Indian home minister endorsed Badal’s demands and said the new post at Attari is the first of 13 ICPs India will construct on the border with Pakistan, Bangladesh and Nepal.

Chidambaram termed the opening a gateway of trade and prosperity to Central Asian countries that is bound to increase Indo-Pak trade four folds.

He added that both countries are endeavouring for visa-free travel for which a joint working group has been formed.

Shahbaz Sharif cited the example of European Union and said that if western Europe can have a single currency after decades of enmity, why is it impossible for India and Pakistan.

Instead of fighting with one another, India and Pakistan must launch a war on poverty, and work towards economic integration, trade innovation and collective power generation, he said.

Instead of importing goods from Mumbai to Karachi via Dubai or Singapore, why can they not be traded through Attari, Shahbaz added.

Collaboration on education

The two countries did not stop just at trade though.

The Hyderabad-based Indian School of Business (ISB) signed a memorandum of understanding (MoU) with the Karachi-based Institute of Business Administration (IBA) to provide executive education in Pakistan.

Under the MoU, signed by ISB Deputy Dean Deepak Chandra and IBA Dean and Director Ishrat Husain, the former will offer open enrolment and custom-designed programmes, through its Centre for Executive Education.

“In the first year, we are looking at a portfolio of 12 open programmes. We will explore and pursue custom-designed courses after holding discussions with thought leaders and the educational industry in Pakistan,” Chandra told reporters.

The first of such schemes is slated to commence in June 2012, which will be classroom-based learning at IBA, with options to add technology-assisted models in due course.

“India had made huge advances in higher education, science and technology and we in Pakistan should benefit from these achievements,” Husain said.

“I hope the collaboration between ISB and IBA is the beginning of a long process of collaboration between other institutions of higher learning in the two countries. We look forward to an exchange of students and faculty, and collaborate on research as we build on this success,” he added.

(Read: Nearly there)

Published in The Express Tribune, April 14th, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/364513-MakhdoomAminF_1735799875/364513-MakhdoomAminF_1735799875.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>India to allow foreign direct investment from Pakistan</title>
			<link>https://tribune.com.pk/story/364156/india-to-allow-foreign-direct-investment-from-pakistan</link>
			<comments>https://tribune.com.pk/story/364156/india-to-allow-foreign-direct-investment-from-pakistan#comments</comments>
			<pubDate>Fri, 13 Apr 12 08:52:52 +0500</pubDate>
			<dc:creator>
				<![CDATA[reuters]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=364156</guid>
			<description>
				<![CDATA[India's trade minister says agreement to relax restrictions on visas for Pakistani businessmen almost ready.]]>
			</description>
			<content:encoded>
				<![CDATA[India has decided to allow foreign direct investment from Pakistan, India's trade minister said on Friday, hours before the two countries were due to open a trading post on the border in the latest sign of thawing economic ties.            

Liberalising heavily restricted trade and investment flows is now the driver of peace efforts between the neighbours, whose fragile ties were shattered when militants attacked the Indian city of Mumbai in 2008.

"India has taken an in-principle decision, as a part of the process to deepen our economic engagement, to allow foreign direct investments from Pakistan in India," said Trade Minister Anand Sharma at a news conference with his Pakistani counterpart.

Under current rules, Pakistani citizens cannot directly invest in India. Investment flows are unlikely to surge, but the move will go some way to addressing concerns by Pakistani businessmen that India places too many restrictions on them.

More than 600 Pakistani businesses are in New Delhi this week at a trade fair to promote their products to the Indian market.

In the face of some domestic opposition, the government of Pakistan President Asif Ali Zardari last November vowed to grant India most favoured nation status, which ends restrictions that require most products to move via a third country.

The move was hailed by India and the two countries are now focused on resolving economic issues before moving on to more intractable problems.

Sharma also said an agreement to relax restrictions on visas for Pakistani businessmen was almost ready.

Later on Friday, Sharma and the Pakistani trade minister, Makhdoom Amin Fahim, will open an expanded border trade terminal at Wagah, between Lahore and Amritsar.

With a capacity to handle about 600 trucks a day, the border crossing is expected to help bring trade to $8 billion annually from the current level of $2.6 billion, Indian industry chamber ASSOCHAM said in a study published this week.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/364156-SharmaFahimAFP-1334309670/364156-SharmaFahimAFP-1334309670.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>A (most favoured) friend indeed: Pakistan to import petrol from India</title>
			<link>https://tribune.com.pk/story/354204/a-most-favoured-friend-indeed-pakistan-to-import-petrol-from-india</link>
			<comments>https://tribune.com.pk/story/354204/a-most-favoured-friend-indeed-pakistan-to-import-petrol-from-india#comments</comments>
			<pubDate>Sat, 24 Mar 12 02:23:10 +0500</pubDate>
			<dc:creator>
				<![CDATA[reuters]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=354204</guid>
			<description>
				<![CDATA[Notification allowing import of various fuels expected next month.]]>
			</description>
			<content:encoded>
				<![CDATA[Pakistan is likely to allow the import of petrol and other fuels from India, from next month. Islamabad is expected to bring out a notification next month, to this effect which will allow the import of certain items including petrol and food items, Energy Secretary Ejaz Chaudhry said on Friday. Chaudhry said he discussed importing petrol from India during talks with his Indian counterpart GC Chaturvedi.


New Delhi has agreed, in-principle, to supply fuel to Pakistan from Bhatinda, where Hindustan Petroleum Corp Ltd is about to commission a refinery. Also, Indian Oil Corp (IOC) has a fuel depot at Bhatinda which can supply petrol and other products to Pakistan.

Pakistan, which is facing a fuel shortage, is looking to start petrol imports from India using tankers as early as next month, but wishes to sort quality and specification issues first. While initial fuel imports will be through tankers, a dedicated pipeline may be built in the future.

Chaudhry said Pakistan was also keen to import gas from India as well. State-owned GAIL’s newly-commissioned gas pipeline from India’s west coast to Bhatinda in Punjab is 45km from the Pakistan border and can be extended to Lahore.

Pakistan agreed last November to open up more trade with India by replacing a list of items its bigger neighbour can sell across the border with a shorter list of items that cannot be traded – a move regarded as key to improving commercial ties.

Pakistan has agreed in principle to grant access to imports from India under the Most Favoured Nation status, but has yet to fully implement the change.

“We have granted the Most Favoured Nation status to India. Our cabinet has approved it,” Chaudhry told reporters in the Indian capital.

“Our commerce ministry is in the final stages of documentation of a notification to bring out certain items from the negative list, including petrol,” he said. “The notification should be out in 14 to 15 days.”

Pakistan currently bans imports of Indian gasoline. It allowed diesel imports from India in 2009, but no Indian supplies were sent in the face of preferential prices offered by Pakistan’s allies such as Kuwait.

India’s oil minister S Jaipal Reddy had said in January that the country was examining a proposal to export petroleum products and gasoline to neighbouring Pakistan.

Chaudhry said Pakistan was aiming to build its first liquefied natural gas (LNG) terminal, which it hopes to commission in the second-half of the next year.

Four-to-five companies, including global oil major Royal Dutch Shell and South Korea’s Daewoo, have shown interest in supplying LNG to Pakistan under a tender seeking 500 million cubic feet a day gas, he said.

The government plans to award the tender in one month, Chaudhry said.

Chaudhry also discussed the transit fee to be paid for the proposed Turkmenistan, Afghanistan, Pakistan, India TAPI gas pipeline.  Officials said India has to pay a transit fee to Pakistan and Afghanistan for allowing passage of gas that it wants to buy from Turkmenistan. Similarly, Pakistan has to pay a transit fee to Afghanistan.

“We have agreed to a uniform fee. Pakistan has agreed that it will accept the same fee that India agrees to pay Afghanistan,” an Indian official said. Turkmenistan has already finalised a gas sale purchase agreement with all the participating countries for the $7.6 billion gas pipeline project, which will supply 3.2 billion cubic feet of gas daily.

Published in The Express Tribune, March 24th, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/354204-track-1332527672/354204-track-1332527672.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>FDI from Pakistan not yet approved: Indian official</title>
			<link>https://tribune.com.pk/story/350101/fdi-from-pakistan-not-yet-approved-indian-official</link>
			<comments>https://tribune.com.pk/story/350101/fdi-from-pakistan-not-yet-approved-indian-official#comments</comments>
			<pubDate>Thu, 15 Mar 12 03:13:10 +0500</pubDate>
			<dc:creator>
				<![CDATA[ppi]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=350101</guid>
			<description>
				<![CDATA[Indian High Commission in Islamabad has forwarded a negative list of 1,209 items to be approved by Pakistan Cabinet.]]>
			</description>
			<content:encoded>
				<![CDATA[The Indian government has said on Wednesday that it has not taken any decision yet on allowing investments from Pakistan.


“No decision has been notified by the government with regard to permitting investments from Pakistan at par with Bangladesh,” Minister of State for Commerce and Industry Jyotiraditya Scindia has said in a written reply to the Rajya Sabha.

Earlier, officials had said that the Department of Industrial Policy and Promotion had sent a proposal to the finance ministry seeking amendments in the Foreign Exchange Management Act to allow foreign direct investments from Pakistan.

The Indian government currently allows such investments from Bangladesh.

In another reply, Scindia said that the Indian High Commission in Islamabad has forwarded a negative list of 1,209 items to be approved by the Pakistan Cabinet, which will “substantially improve prospects of exports from India to Pakistan.”

Published in The Express Tribune, March 15th, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/350101-pakistanindia-1331781046/350101-pakistanindia-1331781046.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Pak-India trade still a fraction of  $40 billion potential</title>
			<link>https://tribune.com.pk/story/349146/pak-india-trade-still-a-fraction-of-40-billion-potential</link>
			<comments>https://tribune.com.pk/story/349146/pak-india-trade-still-a-fraction-of-40-billion-potential#comments</comments>
			<pubDate>Mon, 12 Mar 12 21:46:52 +0500</pubDate>
			<dc:creator>
				<![CDATA[our.correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=349146</guid>
			<description>
				<![CDATA[Bureaucratic hurdles, lack of infrastructure holding both countries back.]]>
			</description>
			<content:encoded>
				<![CDATA[Pak-India Despite government’s greater flexibility to normalise trade ties with India, bureaucratic hurdles, high Indian import tariffs and lack of infrastructure are obstacles in expansion of bilateral trade having annual potential of $40 billion, says a former senior official of the International Monetary Fund.

In the medium term, studies show that Pak-India trade can easily be multiplied 20 times, said Dr Mohsin S Khan, former director of the IMF. He was speaking at a seminar on “Expanding India-Pakistan Trade” organised by Pakistan Institute of Development Economics here on Monday.

Dr Mohsin S Khan is currently a Senior Fellow at the Peterson Institute for International Economics, Washington DC He said Pakistan showed greater flexibility in normalising trade ties with India, even more than what one could expect couple of years ago. He said “For the next decade India will be engine of growth in South Asia and it is up to Pakistan to get on the bandwagon.” Khan said bilateral trade was unnaturally small as Pakistan accounts for less than half per cent of India’s trade while New Delhi accounts for 3% of Islamabad’s total trade.

“Pakistan has budged from two major demands”, he added that helped things moving swiftly. By in principle granting Most Favoured Nation status to India it has finally decided to separate trade issue from Kashmir and Indus Basin Water Treaty issues, said Khan, adding, He said Pakistan has also moved away from its stance that India should first remove non-tariff barriers and then it would consider giving the MFN status while India’s view was that Islamabad should first grant the MFN status and then the issue of non-tariff barriers would be addressed.

However, Khan warned that there was still a lot to be done. He said the main obstacles to complete trade normalisation were excessive red tape which could slow process of addressing procedural harmonisation, high tariffs imposed by India and substantial non-tariff barriers.

“India has rigorously interpreted its NTBs viz a viz Pakistan that could affect Pakistani’s exports”. He said if these issues were not resolved Pakistan’s exports in the sectors of textiles, agriculture, leather and onyx could be affected.

He proposed a two-pronged strategy to address these issues. In short-term Pakistan has to completely address the issue of MFN, both the countries need to ease visa regimes, open additional border posts, increase air links, facilitate sea shipments and allow cross-border banking operations. In medium term, he advocated giving India transit facility to trade with Central Asia and Iran. “Without opportunity of transit trade to India the Indians will not have maximum benefits while trading with Pakistan. He said India should also lower tariff barriers and reduce NTBs.

He dispelled the impression that Pakistan was moving very fast. “Pakistan has moved very fast on announcements,” said Khan.

“I was a sceptic about Pakistan India trade normalisation because major stakeholders had not given importance to trade but an overwhelming response coming from all segments of the society indicates that it is in the interest of Pakistan,” said Dr Rashid Amjad Vice Chancellor of PIDE.

Published in The Express Tribune, March 13th, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/349146-natotruckstrade-1331588264/349146-natotruckstrade-1331588264.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Support: Business Forum Punjab wants MFN list expanded</title>
			<link>https://tribune.com.pk/story/347484/support-business-forum-punjab-wants-mfn-list-expanded</link>
			<comments>https://tribune.com.pk/story/347484/support-business-forum-punjab-wants-mfn-list-expanded#comments</comments>
			<pubDate>Fri, 09 Mar 12 01:21:31 +0500</pubDate>
			<dc:creator>
				<![CDATA[our.correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=347484</guid>
			<description>
				<![CDATA[BFP says its against rushed timeline, demands negative list be maintained for another 36 months while it is reviewed.]]>
			</description>
			<content:encoded>
				<![CDATA[President Business Forum Punjab (BFP) Ibrahim Qureshi has said that BFP supports a pro-trade policy not only with India, but throughout the South Asian region.


Currently, he said, 90 per cent of our trade takes place outside the region, against the ideal of 2/3rds trade within regional partners.

However, we need to listen to and seriously address concerns of the domestic business community before jumping towards a deadline for removing trade barriers, he said.

He said that the BFP is against a rushed timeline, and demanded that the negative list be maintained for another 36 months while it is reviewed before any major decision is taken. At the briefing, he also criticised the government for unfairly burdening the masses with the petroleum levy.

Published in The Express Tribune, March 9th, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/347484-natotruckstrade-1331255187/347484-natotruckstrade-1331255187.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>In support of Pakistan-India trade</title>
			<link>https://tribune.com.pk/story/346821/in-support-of-pakistan-india-trade</link>
			<comments>https://tribune.com.pk/story/346821/in-support-of-pakistan-india-trade#comments</comments>
			<pubDate>Wed, 07 Mar 12 18:05:57 +0500</pubDate>
			<dc:creator>
				<![CDATA[shahzad chaudhry]]>
			</dc:creator>
			<category><![CDATA[Opinion]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=346821</guid>
			<description>
				<![CDATA[Pakistan has strong reservations about India, but there needs to be introspection on most issues from its perspective]]>
			</description>
			<content:encoded>
				<![CDATA[For some time now, I have been reiterating the fact that both India and Pakistan are too entrenched in their respective ways of thinking about the other. For any meaningful progress in their relationship they shall have to find some parallel or alternate avenues of engagement; else Kashmir, Siachen and terrorism can only keep them pegged to where the relationship began in 1947 — inimical, speculative and distrustful. Siachen, Mumbai and Kargil only reinforced the older paradigm.

So when Mr Anand Sharma, India’s minister of commerce who recently visited Pakistan and declared that trade has the potential to improve trust and confidence between our two countries to tackle more intractable issues, he had at least one supporter in me hailing his vision. Kudos also to our rather young, but increasingly-maturing foreign minister on saying in her presser how trade indeed shall be freed between the two countries by the end of the year, and how doing so does not in any manner ‘dilute’ our gradually increasing list of core issues (though she may be half right there).

Pakistan has strong reservations about India; and, this perhaps cannot be more understated. But there remains a need for a serious introspection on most issues from Pakistan’s perspective. It must include a genuine cost-benefit analysis that indicates the realism in actualising some of Pakistan’s long-held objectives. It is true that over a given time, issues between nations mutate, morph and take different connotations. The questions on Kashmir must include: Is the issue a greater albatross now around India’s neck, or was it a bigger pain when Pakistan may have had something to do with it in the 1990s? Isn’t Kashmir now big enough to become India’s own problem, than when Pakistan was more involved in it? The Kashmiri leadership is grateful for the default morality that Pakistan’s abstention has given to the issue.

On water, the deficit in intellectual understanding of the issue and in being literate enough on the Indus Water Treaty is ours. India has spent enough capital, time and intellect in educating itself on the various benefits she can muster within the bounds of the treaty. There is an imperative need to develop a ‘water intellect’ in Pakistan before we raise any banner of patriotic fervour with a capacity to inflict further damage to our long-term interests. That way, we can confront some of India’s deviations from the treaty, based on reason and logic and avoid the bluster that can save Pakistan some blushes.

I have just returned from a couple of Track-II meetings between the retired military brass of both India and Pakistan; and, I am greatly encouraged by what I heard and saw. One, the interaction between the two formerly sworn adversaries was greatly civil and respectful. You could tell the professional respect that each showed to the other, quite unlike our usual mix of bureaucrats, academics and others. More likely the latter categories remain unsure of the flex that each of their constituencies can afford even as they discuss the same issues without official encumbrances. And two, the realism that each military man — after having been a practitioner of the art of war and acutely aware of both its efficacies and inadequacies — brings to the discussion makes such an interaction promising and positively motivated.

Some of the agreed resolutions were to begin a military to military interaction between senior training institutions; invitation to each other’s senior retired officers to address the other’s staff colleges and national defence universities, to be followed by interaction between the serving officers of the same institutions. Significant among this was a realisation of the futility of war and its irrelevance to the two neighbours as an arbiter of any meaning in resolving disputes. And with that premise, and acceptance that where possible offensive strike forces be relocated away from each other’s borders — and where that may be difficult because of infrastructure limitations and the heavy-cost involved in such relocation, adjust the force mix away from offensive to a more defensive orientation. This, in itself will make any claims and aspersions on offensive doctrines such as ‘cold start’ irrelevant — keep in mind that the Indians consistently deny any such doctrine, though they concede a move towards making defensive elements more potent with a force mix that may preclude long mobilisation periods. With a willingness to change such force deployments, South Asia may just have turned the corner.

Published in The Express Tribune, March 8th, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/346821-ShahzadChaudhryNew-1331138557/346821-ShahzadChaudhryNew-1331138557.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>MFN and beyond: Getting a foothold in the Indian market</title>
			<link>https://tribune.com.pk/story/345402/mfn-and-beyond-getting-a-foothold-in-the-indian-market</link>
			<comments>https://tribune.com.pk/story/345402/mfn-and-beyond-getting-a-foothold-in-the-indian-market#comments</comments>
			<pubDate>Sun, 04 Mar 12 21:54:43 +0500</pubDate>
			<dc:creator>
				<![CDATA[sahibzada.m.irfan]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=345402</guid>
			<description>
				<![CDATA[Market access is only part of the solution in kick-starting export growth.]]>
			</description>
			<content:encoded>
				<![CDATA[Since the government’s decision to grant MFN status to India, considerable debate has abounded over the benefits the decision is likely to accrue for Pakistan. With potential access to the world’s second largest market in sight, a new dawn in economic relations with our neighbour is being heralded.


The theoretical benefits of trading with a regional partner notwithstanding, the MFN decision is likely to be of little tangible value for Pakistan beyond political posturing. Firstly, Pakistan’s economic and in particular, export stagnation has more to do with deep rooted structural deficiencies in the economy and misplaced policy objectives than the issue of market access to India. Secondly, MFN has done little in terms of enhancing Pakistan’s access to the India market – it has rather done the opposite. The latter fact actually carries potential damage for Pakistan’s frail industrial base. Even politically, the decision has not been valuable in improving our international image or garnering support in international forums.

Contrary to popular perception, mostly created by international experts, Pakistan’s denial of MFN has not been the main reason for a low volume of trade, and therefore of the sustained economic hiatus between the countries. India has been equally culpable, if not more, by maintaining a long list of non-tariff barriers to block imports which, in effect, target products from Pakistan.

The MFN decision has, however, guaranteed open access to the Pakistani market for India. Whatever increase in trade that takes place as a result will most likely be unidirectional, ie exports from India to Pakistan. Even without the MFN, recent trends indicate a worsening trade balance for Pakistan with India to the tune of $1 billion in the last five years. Conversely, Pakistan’s exports to India have remained static around $330 million since 2006-7 despite MFN access granted by India. According to bullish Indian estimates, the immediate impact of the MFN decision could worsen this trade balance by a further $7 - 8 billion.

Regardless of MFN status, Pakistan can and must look towards rapid expansion of exports, including those to India, but for that our economic priorities need to be set straight. Owing to its much higher productivity and substantial returns on investment, manufacturing growth is the key to economic expansion and a rise in exports. The history of all advanced countries, from Britain’s industrial revolution in the 18th century, the East Asian Miracle in the 20th century, to the recent rise of China and India, bears witness to this fact. In all these countries, market access was only part of a larger strategy of industrial targeting where manufacturing growth fuelled export growth.

Sadly, Pakistan’s strategy has been more akin to putting the proverbial cart before the horse. While the government’s recent market access initiatives have been noteworthy, industrial performance to make use of the increased access has been poor. Both public and private investments in manufacturing have nosedived since 2006-7, with 11% shrinkage only over the last one year. Resultantly, the manufacturing sector has been on a considerable decline recording 4% or less growth since 2005. The textile sector which forms almost 50% of Pakistan’s exports and is considered the country’s growth engine has remained virtually static and our share in global textile exports has actually diminished.

Besides the improbability of export expansion to India as a result of the MFN decision, the other potential economic benefits are only as good as textbook theories. Surely, analysts drooling over the possibility of importing cheaper raw materials from India must also see that unless there is a fast growing industry that can put them to use, the raw materials will only give competition to our local suppliers of the same product. Also, the potential advantage to the Pakistani consumers from cheaper Indian products may be miniscule compared to the economic deprivation caused by unemployment when domestic producers are displaced by Indian imports.

However, now that the MFN decision has been taken, there must be ways to restrict the impending damage while taking some advantage of the lopsided situation. For export expansion to the world in general and to India in particular, overall economic restructuring is required, through a well coordinated industrial policy. Higher value added industries must be targeted after careful analyses, and they should be given adequate protection. The government should not be afraid to use the WTO compliant trade remedy laws including anti-dumping, countervailing and safeguard duties to counter import surges, if the need arises.

The writer is a PhD candidate in Political Economy at the University of Cambridge.

Published in The Express Tribune, March 5th, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/345402-ImageDESIGNESSAMALIK-1330874520/345402-ImageDESIGNESSAMALIK-1330874520.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Nearly there</title>
			<link>https://tribune.com.pk/story/344037/nearly-there</link>
			<comments>https://tribune.com.pk/story/344037/nearly-there#comments</comments>
			<pubDate>Thu, 01 Mar 12 18:06:20 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=344037</guid>
			<description>
				<![CDATA[Pakistan has decided to liberalise trade with India by moving from a positive list to a negative list.]]>
			</description>
			<content:encoded>
				<![CDATA[It would have been nice if they had done it while Indian Commerce Minister Anand Sharma was in Pakistan, but at long last, the government of Pakistan has decided to liberalise trade with India by moving from a positive list to a negative list. The decision by the federal cabinet on February 29, moves Pakistan to defining only the items that are banned for trading (the ‘negative’ list), and allowing the rest. Previously, the government defined what was allowed for trading (the ‘positive’ list), and banned the rest. And by December 31 of this year, even that negative list will be phased out.

New Delhi has been calling on Islamabad to make this move as part of the normalisation process. At long last, the politicians in Islamabad appear to have mustered up the courage to make the transition that every sensible economist and policy analyst says is good for both countries. At least, in one area of economic policy, this government appears to be headed in the right direction. We would like to applaud the patient perseverance of the civil servants in the commerce ministry and the Foreign Office, who have been pushing for this policy and did all the necessary ground work to make it possible. Commerce Secretary Zafar Mehmood’s leadership on this matter has been particularly commendable. Foreign Minister, Hina Rabbani Khar was reportedly also instrumental in overcoming opposition from sections of the establishment that are still wary of commercial ties with India.

Yet, it seems that in arriving at this pleasant outcome, the free market liberals in the government have had to make some unpleasant compromises. For instance, the negative list was supposed to have been kept ‘short’ to 636 items, per the understanding with India. Unfortunately, the list is currently about 1,209 items, far longer than it should be. It is gratifying, however, that the government is nonetheless committed to phasing it out completely by the end of the year. There will undoubtedly be lobbyists who will argue that this liberalisation is bad for Pakistani industry and it is true that at least some industries will suffer. But in the long-run, there is no arguing with the fact that the Pakistani economy as a whole stands to benefit from being able to sell to a larger Indian market and access their cheaper goods.

Published in The Express Tribune, March 2nd, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/344037-pakistanindia-1330625091/344037-pakistanindia-1330625091.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>India praises Pakistan's efforts to normalise trade ties</title>
			<link>https://tribune.com.pk/story/343960/india-welcomes-pakistans-trade-liberalisation</link>
			<comments>https://tribune.com.pk/story/343960/india-welcomes-pakistans-trade-liberalisation#comments</comments>
			<pubDate>Thu, 01 Mar 12 09:53:09 +0500</pubDate>
			<dc:creator>
				<![CDATA[afp]]>
			</dc:creator>
			<category><![CDATA[Business]]></category><category><![CDATA[World]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=343960</guid>
			<description>
				<![CDATA[India's Minist­er of Extern­al Affair­s SM Krishn­a says Pakist­an is moving in the 'right direct­ion'.]]>
			</description>
			<content:encoded>
				<![CDATA[India on Thursday welcomed Pakistan's decision to phase out major restrictions on Indian imports by the end of this year, a move to normalise trade ties between the nuclear-armed neighbours.

India's Foreign Minister SM Krishna thanked Pakistan for deciding to gradually scrap the "negative list" that prevents the export of hundreds of items from India.

"Pakistan is moving in the right direction in terms of bringing economic content into the political relationship," Krishna told reporters in New Delhi. "This would certainly help strengthen our bilateral ties."

Aiming at complete trade normalisation by the end of this year, the federal cabinet not only approved a negative list of 1,209 banned items, which will allow trade in all other goods with India, but also sanctioned the phasing out of the negative list in the next ten months.

At present, Pakistan maintains a positive list of 1,945 items that are allowed to be traded between the two countries. The switch from a positive to a negative list has long been a hurdle to freeing up trade between the two.

Information Minister Firdous Ashiq Awan had said on Wednesday that the move was taken on recommendations of coalition partners and cabinet members.

Awan had also said that the cabinet also decided in principle to phase out the negative list by December 31, 2012, which will complete the trade normalisation process.

This decision would mean that India can export 6,800 items against 1,950 at present.

India's Associated Chambers of Commerce and Industry, a trade body estimated that the move will increase cross-border trade to over $6 billion by 2014.

Direct trade between India and Pakistan currently constitutes less than one percent of their respective global trade. India exported goods worth $2.33 billion to Pakistan last year while its imports were $330 million.

In 1996, India granted Pakistan "most preferred nation" status which is intended to remove discriminatory higher pricing and duty tariffs.

Pakistan agreed in principle to grant a similar status to India last year, paving the way for a radical change.

Deepening economic engagement between the two countries is seen as crucial to establishing lasting peace in the troubled South Asian region.

Relations between India and Pakistan, which have fought three wars since the subcontinent was partitioned in 1947, have been plagued by border and resource disputes and accusations of Pakistani militant activity against India.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/343960-krishna-1330595402/343960-krishna-1330595402.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>‘Positive’ move: Cabinet okays India trade liberalisation</title>
			<link>https://tribune.com.pk/story/343834/%e2%80%98positive%e2%80%99-move-cabinet-okays-india-trade-liberalisation</link>
			<comments>https://tribune.com.pk/story/343834/%e2%80%98positive%e2%80%99-move-cabinet-okays-india-trade-liberalisation#comments</comments>
			<pubDate>Thu, 01 Mar 12 01:26:36 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shahbaz Rana]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=343834</guid>
			<description>
				<![CDATA[Negative list approved; complete removal of barriers by December.]]>
			</description>
			<content:encoded>
				<![CDATA[Aiming at complete trade normalisation by the end of this year, the federal cabinet not only approved a negative list of 1,209 banned items, which will allow trade in all other goods with India, but also sanctioned the phasing out of the negative list in the next ten months.


At present, Pakistan maintains a positive list of 1,945 items that are allowed to be traded between the two countries. The switch from a positive to a negative list has long been a hurdle to freeing up trade between the two.

“On recommendations of coalition partners and cabinet members, Prime Minister Syed Yousaf Raza Gilani has approved the negative list,” said Information Minister Firdous Ashiq Awan while briefing the media.

The cabinet also decided in principle to phase out the negative list by December 31, 2012, which will complete the trade normalisation process, the minister said.

Larger than expected

The negative list approved by the cabinet, however, is comparatively larger than the understanding arrived at with India. The commerce ministry, in a policy statement earlier, had vowed to restrict it to 636 items.

After consultations with the industry, it was proposed to add 573 items into the commerce ministry’s list, said a spokesperson of the ministry of industries.

The ministry’s recommendation to phase out the negative list in 3 to 5 years was not accepted by the cabinet though, he added. The commerce ministry will determine the timeframe for gradual phasing out of the negative list in the next ten months, in consultations with stakeholders, the minister said.

The abolition of the negative list would automatically confer the ‘Most-Favoured Nation’ status to India, but an official from the textiles ministry disagreed, saying the cabinet would have to prepare a fresh summary in this regard.

Under the World Trade Organisation rules, no state can restrict trade with any other state, but Pakistan has added Annexure G in its trade policy that allows trade with India in limited items. India too has banned investment by Pakistani firms.

Indian Commerce Minister Anand Sharma, during his recent visit to Islamabad, had said his country would relax the ban once the process of trade normalisation is completed.

Addressing concerns

Awan said the Ministries of Industries, Production and Textiles raised concerns over the proposed negative list but the commerce minister assured the cabinet that the government would protect the interests of the local industries through effective implementation of safeguard laws.

In the next 10 months, the local industries would be ready to compete with their Indian counterparts, Awan said.

To a question on the security establishment’s opposition to trade normalisation, Awan said the commerce ministry has consulted all stakeholders, including the military. The process of trade normalisation is not a betrayal to the Kashmir cause, the minister said.

“The prime minister told the cabinet that since trade began between Azad Kashmir and Jammu Kashmir, as many as 14,000 trucks have crossed the Line of Control, involving Rs 14 to 15 billion in trade transactions.”

“If direct stakeholders [in the Kashmir conflict] can trade, then the government has every reason to protect the interests of the rest of Pakistan”, Awan said while quoting the premier.

Published in The Express Tribune, March 1st, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/343834-FirdousAshiqAwan-1330549609/343834-FirdousAshiqAwan-1330549609.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Trade liberalisation: Auto industry worried over approval of negative trade list</title>
			<link>https://tribune.com.pk/story/343728/trade-liberalisation-auto-industry-worried-over-approval-of-negative-trade-list</link>
			<comments>https://tribune.com.pk/story/343728/trade-liberalisation-auto-industry-worried-over-approval-of-negative-trade-list#comments</comments>
			<pubDate>Wed, 29 Feb 12 23:06:01 +0500</pubDate>
			<dc:creator>
				<![CDATA[farhan.zaheer]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=343728</guid>
			<description>
				<![CDATA[Measure likely to result in win-win situation for consumers.]]>
			</description>
			<content:encoded>
				<![CDATA[Manufacturers of automobiles and their parts on Wednesday lost their last hope when the cabinet approved a negative list for trade with India which will be phased out by the end of this year, believing this will massively hurt the country’s auto industry.


After months of deliberations with different industries and inter-ministerial dialogue, the government finally gave the go-ahead to the negative list containing 1,209 items, replacing the positive list, in an attempt to boost trade between the two countries.

The government had been facing strong resistance from different sectors which believed that the negative list should be phased out gradually over a number of years so that it would not hurt the domestic manufacturing industry. Among top advocates of the go-slow policy was the automobile industry.

Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Chairman Syed Nabeel Hashmi told The Express Tribune that the government’s decision to phase out the negative list in just a few months was going to badly hurt the automobile industry.

“We had asked the government to give at least four to five years to the domestic industry before phasing out the negative trade list with India,” he said.

“This is all drama. Despite our reservations, the government has taken this decision which will cost us a lot,” Hashmi said. “The government had decided long ago what it had to do and this is what we are seeing now.”

Hashmi said Pakistan’s auto part manufacturers exported to different parts of the world, but they could not ship their products to India because of non-tariff barriers. “The government is not supporting us in our issues,” he said.

“As far as I think, this decision will lead to an increase in import of Indian products in Pakistan. And eventually all our auto manufacturing units will shift abroad because of unhealthy manufacturing environment in the country,” he said.

Some analysts believe that the phasing out of the negative list is aimed at paving the way for the South Asia Free Trade Agreement (Safta), which the two countries want to implement quickly.

Atlas Honda, the biggest motorcycle manufacturer in Pakistan, has also expressed fear over the cabinet move.

General Manager Corporate Affairs Razi-ur-Rahman said it would significantly increase import of Indian motorcycles in the country because of a significant reduction in duties.

At present, Pakistan imports completely built units (CBUs), or finished motorcycles, from China at 65 per cent duty. The cabinet decision will bring the duty to just 20 per cent in 2012 and then 0-5 per cent in 2013 in trade with India, which will make it very easy to import motorcycles.

Pakistani manufacturers believe that India with the help of non-tariff barriers tries to block their exports. However, Delhi insists that it does not discriminate against Pakistan’s export products at any level. Despite these differences, both the governments have vowed to remove all misconceptions and significantly boost bilateral trade in coming years.

This huge loss to the auto industry, however, is a clear win-win situation for the consumers, who will get cheap products – motorcycles and cars.

For instance, the duty reduction from 65 per cent to 20 per cent will significantly reduce motorcycle prices in the retail market. On the other hand, carmakers will be able to import cheap Indian auto parts that they otherwise import from Thailand at higher prices.

Published in The Express Tribune, March 1st, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/343728-Automobilephotofile-1330556568/343728-Automobilephotofile-1330556568.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Pakistan to end restrictions on Indian imports by Dec 2012</title>
			<link>https://tribune.com.pk/story/343465/pakistan-to-end-restrictions-on-indian-imports-by-dec-2012</link>
			<comments>https://tribune.com.pk/story/343465/pakistan-to-end-restrictions-on-indian-imports-by-dec-2012#comments</comments>
			<pubDate>Wed, 29 Feb 12 14:33:56 +0500</pubDate>
			<dc:creator>
				<![CDATA[web.desk]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=343465</guid>
			<description>
				<![CDATA[&quot;Almost 90% items can be traded with Pakistan as opposed to 17 per cent&quot; says Indian Minister for Commerce.]]>
			</description>
			<content:encoded>
				<![CDATA[In its bid to improve relations with India, Pakistan has decided to normalise cross-border trade by the end 2012, Associate Press (AP) reported on Wednesday.

According to a government statement quoted in the AP report, Pakistan will “phase out restrictions on imports from India by December.”

The statement further said that once the "negative list" of goods had been eliminated by December this year, then "the process of trade normalisation between the two countries would be completed."

A press release from the Cabinet detailed that 1209 items on the negative list will be eliminated.

At present, Pakistan maintains a list of 1,945 items allowed to run from India to Pakistan, only 108 of which can be trafficked directly by road through Wagah.

The release further quoted the Information Minister Firdous Ashiq Awan, who called for bilateral trade to be expanded to other areas beyond the Line of Control.

Indian Minister for Commerce, Industry and Textile Anand Sharma appreciated Pakistan’s decision to liberalise trade between the two countries and said “the move would open business opportunities,” IBN Live India reported.

"This will mark a dramatic shift in the lines that can be traded as now almost 90 per cent items can be traded with Pakistan as opposed to 17 per cent earlier," Sharma was quoted in the report.

"I am happy that this has been achieved. We believe that strengthening economic engagement between India and Pakistan lies at the heart of building enduring peace and stability in this region. Flourishing trade is the biggest confidence building measure among any two nations," Sharma further said.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/343465-pakistanindia-1330525516/343465-pakistanindia-1330525516.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Leaving the village</title>
			<link>https://tribune.com.pk/story/339197/leaving-the-village</link>
			<comments>https://tribune.com.pk/story/339197/leaving-the-village#comments</comments>
			<pubDate>Mon, 20 Feb 12 18:30:35 +0500</pubDate>
			<dc:creator>
				<![CDATA[feisal.h.naqvi]]>
			</dc:creator>
			<category><![CDATA[Opinion]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=339197</guid>
			<description>
				<![CDATA[I am tired of being penned up behind the walls of our village and scared with talk of the Indian bogeyman.]]>
			</description>
			<content:encoded>
				<![CDATA[“Let the bad colour not be seen. It attracts them./Never enter the woods. That is where they wait. /Heed the warning bell. For they are coming”

In The Village, a movie by M Night Shyamalan, the residents of a medieval village live in fear. Dark and mysterious things abound in the woods surrounding them. Dead and mutilated animals show up from time to time. The only way the villagers know how to protect themselves against the evil stalking their lives is through the rules passed by the Elders: no use of the colour red, stay away from the forest and to barricade themselves in their houses whenever the warning bell rings.

The villagers know that they are not the only people and that there are towns out there within walking distance; but these are “wicked places where wicked people live”.

Matters come to a head when one of the main protagonists gets stabbed. As he lies in agony, his girlfriend (Ivy) decides to go to the towns for help. That is when she is told that the creatures in the forest are only make-believe, invented by the Elders to make sure that the villagers don’t wander. In fact, when Ivy finally makes it out of the woods, she finds herself suddenly in the 20th century. It turns out that the village is in the middle of land owned by one of the Elders and that the Elders had decided to wall themselves off from the outside world after various traumas. The movie ends with the Elders still undecided about whether or not to continue their deception.

I mention all of this because I see the movie as a wonderful illustration of Pakistan today. We live walled off from the outside world. We deliberately terrorise our citizens with self-created monsters. And our elders try to keep us in line with fake rules designed to mystify rather than to enlighten.

Let me elaborate. There is a reason why the phrase ‘Indian subcontinent’ exists. Look at a map of South Asia and what you will find is a vast flatland flanked by the Hindukush, the Karakoram and the Pamirs to the West, the Himalayas to the North, the Patkai to the East and the Indian Ocean to the South. Yes, there are vast differences of culture and geography to be found within that landmass. But the cold hard truth is that 80 per cent of Pakistan’s population (i.e. the people living in Sindh and the Punjab) inherited a culture that is largely similar to the people immediately across the border from them.

Does this mean that the two-nation theory was wrong and the Partition of India a mistake? Frankly, I don’t give a damn. What I do know is that guilt is no basis on which to decide questions of policy and public identity. What I do know is that I am tired of being penned up behind the walls of our village and scared with talk of the Indian bogeyman.

Pakistan is once again inching towards a more liberal trade and visa regime with India. Every time this happens, the usual pundits emerge from the woodwork. Some of them talk about cultural annihilation. Some of them talk about economic annihilation. But between the protectionist lobbies of our local manufacturers and the fear-mongering of our religious leaders, the end result is invariably a stalemate; a preservation of the status quo and a continuation of our ghetto status.

The point here is not the validity of economic protectionism. I am not an economist and cannot properly answer the question as to whether free trade with India can help us or hurt us. My friend Savail Hussain, however, is an economist (and a damn good one at that). His view is that the smaller economy tends to benefit from access to the larger economy and that Pakistan will be a net beneficiary of trade with India. On the other hand, there are certainly people who disagree, and that includes well-respected authors such as Ha-Joon Chang. In his well known book, Kicking Away the Ladder, the Cambridge professor argued that most of today’s leading economies protected themselves in the beginning through high tariffs and only allowed outsiders into their markets once domestic manufacturers could handle the competition.

To return to my point, what I want to emphasize is that we cannot allow even legitimate economic fears to justify our cultural isolation. Pakistan today is in danger of becoming the cesspool of the Muslim world, home to all the poison draining out of the lands of our religious brethren. What is needed to counter this growing radicalization is contact with the outside world. Like the residents of The Village, we are being terrified through fake monsters created by people who think they are defending us. It is only if we managed to see for ourselves that the outside world is not full of monsters that we will be able to break away from those fears.

To a certain extent, the barriers that isolate us are already being whittled away by technology. Millions of people tune in daily to Indian soap operas. Millions more relax by watching Indian movies. But, at the same time, there is no substitute for people to people contact. It is one thing to read of a different world or even to see it on a screen. It is another thing entirely to see it for yourself.

But what will happen to Pakistan then, ask the Elders? Will it not wither away? Will it not become absorbed back into India?

In all honesty, I don’t think so. I have been to India numerous times and would like to go there many times again. But I have no desire to be an Indian or to live anywhere else other than where I currently reside. What I do know is that you can’t thrust nationhood down the throats of an unwilling people. What I do know is that fear is no basis on which to build a country. Our Elders can either learn that lesson now. Or they can wait for the explosion which follows when the villagers learn the truth.

Published in The Express Tribune, February 21st, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/339197-FeisalHNaqviNew-1329752474/339197-FeisalHNaqviNew-1329752474.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Liberalise all visas</title>
			<link>https://tribune.com.pk/story/338718/liberalise-all-visas</link>
			<comments>https://tribune.com.pk/story/338718/liberalise-all-visas#comments</comments>
			<pubDate>Sun, 19 Feb 12 17:30:32 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=338718</guid>
			<description>
				<![CDATA[If the ultimate goal is sustainable peace, Pakistan and India just made a substantial stride towards achieving that.]]>
			</description>
			<content:encoded>
				<![CDATA[Progress in the peace process between Pakistan and India is measured in inches, not yards. By that metric, the decision by the two countries to move to a more liberal visa regime should be seen as a considerable step forward. The agreement will make it easier for businessmen to move across the border and will also grant banks from Pakistan and India permission to operate in each other’s countries. The most immediate impact of this move will be an increase in bilateral trade, currently an anaemic three billion dollars a year. At a meeting last year, the trade ministers of the two countries had announced their intentions to, at least, double trade. Simplifying the cumbersome visa process for businessman shows that both countries were not simply indulging in cheap rhetoric but have realised the mutual benefits of cross-border trade.

As is always the case with Pakistan-India agreements, however, there is a lot more that can and should have been done. If the ultimate aim is lasting peace and both the PPP and Congress governments have demonstrated their dovish instincts in the recent past, then visa reforms should have been more wide-ranging. There is no remedy better than people-to-people contacts to remove mutual suspicion and hatred between Pakistanis and Indians. Making it easier for artists and sportsmen to travel to each other’s countries would have generated much goodwill and held very little political risk. Indeed, with Pakistani cricketers shut out yet again from the IPL cricket auction, this would have been an opportune moment to announce a resumption of sporting ties.

Still, the more closely intertwined the two countries become through trade, the harder it is to resort to violence as a solution to political problems. Thus, the decision by Pakistan to grant India Most-Favoured Nation trading status and to gradually remove the list of goods that can’t be imported from India will end up being very consequential in the peace process. As the two countries come to rely on each other for prosperity, hawks will find it harder to gin up anger over every small incident. If the ultimate goal is sustainable peace, then Pakistan and India just made a substantial stride towards achieving just that.

Published in The Express Tribune, February 20th, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/338718-anandsharmama_1735799875/338718-anandsharmama_1735799875.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Trade talks: Sharma tries to put positive spin on slow progress</title>
			<link>https://tribune.com.pk/story/337739/trade-talks-sharma-tries-to-put-positive-spin-on-slow-progress</link>
			<comments>https://tribune.com.pk/story/337739/trade-talks-sharma-tries-to-put-positive-spin-on-slow-progress#comments</comments>
			<pubDate>Fri, 17 Feb 12 01:20:16 +0500</pubDate>
			<dc:creator>
				<![CDATA[farooq.tirmizi]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=337739</guid>
			<description>
				<![CDATA[Indian commerce minister praises hospitality of his hosts .]]>
			</description>
			<content:encoded>
				<![CDATA[For a man who had essentially been stood up, Anand Sharma appeared remarkably cheerful. If the Indian commerce minister was disappointed at Pakistan’s failure to liberalise its end of trade between the two countries, he certainly did not show it when he sat down for an interview with The Express Tribune.

“We had only one desire: that the thinking of the two nations changes such that trade relations between the two countries improve. And that was achieved on this trip,” said Sharma, delicately evading the question of whether he felt that Pakistan had backtracked on its commitment.

At issue was Pakistan’s failure to move from a  “positive list” – where only the items allowed for trade are defined and the rest banned – to a short “negative list”, which consists only of a few items that are disallowed for trading and legalising the rest. After the meeting between the commerce ministers of the two countries in Mumbai in November, it had been widely expected that Pakistan would do so during Sharma’s visit in February. Pakistan has not yet done so and only “reaffirmed” its commitment to do so by the end of the month.

Sharma appeared to be trying to put a positive spin on the matter: “The joint statement has reaffirmed this and even Prime Minister Yousaf Raza Gilani said this very clearly last night as well.”

The Indian commerce minister made it a point to appreciate the efforts of his host. “Our people are very impressed by the hospitality of the Pakistani people and the government,” said Sharma, referring to the delegation of Indian businessmen who have accompanied him on this trip. He described the delegation as the largest trade group that has travelled abroad from India.

Yet even as he appeared on the surface to have been forgiving of delays on the Pakistani side, the Indian cabinet minister seemed unwilling to talk about the issue that many Pakistanis see as the key to liberalising trade with India: non-tariff barriers to trade such as quotas, quantitative restrictions, and regulations that many businessmen and economists describe as burdensome.

When asked the question about non-tariff barriers, Sharma at first started talking about the reductions India had made in its tariffs and then changed track, referring to India’s growing international trade as evidence that all was well. “If it were true [that non-tariff barriers are a problem], then India’s trade would not have grown to the levels it has,” he said, adding that India’s exports and imports totalled $750 billion in 2011.

Sharma’s opinion, however, seems to be contradicted by the World Bank, which ranks India 109th out of 183 countries in terms of ease of trading across borders in its 2012 Doing Business report. The Indian commerce minister appeared to get mildly flustered at the mention of that ranking, which is a full 34 places below that of Pakistan. “No, I do not agree with that report. I will be speaking to our people who deal with the World Bank to clarify the matter. But we do not have to agree with every IMF and World Bank report.”

The Indian cabinet minister eventually admitted that non-tariff barriers were an issue and said that the three agreements signed between India and Pakistan in Islamabad on Wednesday were meant to address them.

Sharma’s denial seems ironic, considering how he had said earlier in the interview that “governments can only make policies and create the conducive environment for trade.”

The rest of his rhetoric also appeared solidly supportive of free markets. “We are against protectionism globally. India is speaking very strongly for liberal trade regimes... International trade used to be a small part of our GDP but now touches two-thirds of the Indian economy.”

This rhetoric, however, belies the political difficulties that Indian Prime Minister Manmohan Singh’s administration has had in pushing through liberalisation reforms. Sharma admitted that political consensus had been difficult to achieve, but remained largely optimistic. “Consensus must not be confused with unanimity... I have not come without a political mandate. I have the mandate of my prime minister and my government. We have come with an open heart and an open mind.”

“Our 64-year journey is a story of lost opportunities,” he said. “We can either look at the glass as half full or half empty. I’d rather we look at it as half full.”

(Read: Trade ties with India)

Published in The Express Tribune, February 17th, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/337739-anandsharmama_1735799875/337739-anandsharmama_1735799875.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Indo-Pak relations: Economic engagement the only way forward</title>
			<link>https://tribune.com.pk/story/336382/indo-pak-relations-economic-engagement-the-only-way-forward</link>
			<comments>https://tribune.com.pk/story/336382/indo-pak-relations-economic-engagement-the-only-way-forward#comments</comments>
			<pubDate>Tue, 14 Feb 12 21:32:39 +0500</pubDate>
			<dc:creator>
				<![CDATA[farhan.zaheer]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=336382</guid>
			<description>
				<![CDATA[Both sides close to pacts on easier bank opening and visa policies.]]>
			</description>
			<content:encoded>
				<![CDATA[Looking at the fast changing economic balance from the West to the East where Asia is leading the world, India wants to write a new chapter in the history of its relations with Pakistan so that the two countries can create new opportunities for each other, said Indian Minister for Commerce, Industry and Textile Anand Sharma.


He was speaking to the business community at a ceremony organised by the Karachi Chamber of Commerce and Industry (KCCI) here on Tuesday.

“Let’s write a new chapter in the history of the two countries. Let’s make the most of changing economic dynamics of the modern world that have posed both threats and opportunities to us,” he said.

“India wants to engage Pakistan and write a new essay of trust and friendship to change the future of this region,” he said, adding he made this comment as a representative of the people of India and not just as a minister.

The two countries are close to striking various economic pacts during Sharma’s ongoing visit to Pakistan. All new pacts would push the two countries towards liberal trade and commerce like easy visa policies, opening of bank branches in both countries and many other important steps, he added.

Sharma was of the view that challenges like lack of resources could be overcome through application of information technology that had opened new vistas of economic growth for both India and Pakistan. “Economic engagement will help conquer all the challenges we face today,” he said.

The minister sparked a huge round of applause when he said that the growth of Indian health sector had brought down cost of different medical treatments from thousands of dollars to a few dollars, helping the world’s poor who came to India for operations including Pakistanis.

Similarly, he praised Pakistan for making respectable progress in sectors like agriculture and textile. “We want to see both countries sharing their knowledge and technology so that the people benefit from the economic engagement,” he added.

He pointed out that over half of Fortune 500 companies had set up their research and development centres in India.

Speaking on political relations between India and Pakistan, he said all neighbouring countries had some issues but that did not affect their trade relations. When India and China could trade despite having political issues, why not India and Pakistan, he asked.

Speaking on the occasion, Federation of Indian Chamber of Commerce and Industry President RV Kanoria agreed with the suggestion of Sindh Board of Investment Chairman Zubair Motiwala that both countries could trade in their respective currencies.

“I want to see both countries start trade in their respective rupee rather than dollar and other currencies,” Kanoria said.

KCCI President Mian Abrar Ahmad said the two countries had wasted decades in animosity and time had come to come close to each other for trade and commerce. He suggested that Karachi and Mumbai, the two financial hubs and port cities, should take concrete steps to boost trade and commerce.

Published in The Express Tribune, February 15th, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/336382-anandsharmakc_1735799875/336382-anandsharmakc_1735799875.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>64 years on: Pakistan, India traders fail to exploit potential</title>
			<link>https://tribune.com.pk/story/335974/64-years-on-pakistan-india-traders-fail-to-exploit-potential</link>
			<comments>https://tribune.com.pk/story/335974/64-years-on-pakistan-india-traders-fail-to-exploit-potential#comments</comments>
			<pubDate>Mon, 13 Feb 12 22:52:51 +0500</pubDate>
			<dc:creator>
				<![CDATA[our.correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=335974</guid>
			<description>
				<![CDATA[Bombay Chamber chief calls for unrestricted phone services .]]>
			</description>
			<content:encoded>
				<![CDATA[Bombay Chamber of Commerce and Industry President Ashok Kumar Barat has said the business community of India and Pakistan should be ashamed of not being able to exploit the trade potential for the last 64 years as envisioned by the founders of the two countries.

Speaking to members of the Karachi Chamber of Commerce and Industry (KCCI) at the KCCI head office on Monday, Barat said “the business community of both countries should push their respective governments to immediately start complete phone services,” adding small steps should be taken now while other important measures would be taken later as the two sides stepped forward.

“While we demand our rights from our governments, we should not ignore what important responsibilities we businessmen have on our shoulders to bring India and Pakistan closer,” he added.

He termed Mumbai and Karachi natural partners in trade and commerce, which should come closer to complement each other. Growing relations between the Bombay Chamber and the Karachi Chamber would further ease the problems faced by the business community of both countries, he stressed.

Speaking on the role of governments in building trade ties, Barat said the two sides seemed to be sincerely trying to understand each other’s problems in trade and commerce. “The process is slow, but it is going to bring change soon. The business communities should patiently wait for some time to see things moving fast.”

KCCI President Mian Abrar Ahmed said the visit of Barat would further strengthen relations between the two chambers that represented the financial hubs of India and Pakistan.

“We businessmen must push our governments to create an environment where investors can invest in each other’s country,” Sindh Board of Investment Chairman Zubair Motiwala said on the occasion.

Published in The Express Tribune, February 14th, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/335974-AshokKumarMum_1735799875/335974-AshokKumarMum_1735799875.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Making room: ‘No objection on import of CKDs from India’</title>
			<link>https://tribune.com.pk/story/335976/making-room-%e2%80%98no-objection-on-import-of-ckds-from-india%e2%80%99</link>
			<comments>https://tribune.com.pk/story/335976/making-room-%e2%80%98no-objection-on-import-of-ckds-from-india%e2%80%99#comments</comments>
			<pubDate>Mon, 13 Feb 12 22:49:04 +0500</pubDate>
			<dc:creator>
				<![CDATA[ppi]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=335976</guid>
			<description>
				<![CDATA[Domestic automakers confident about taking on Indian competition.]]>
			</description>
			<content:encoded>
				<![CDATA[The local automobile industry will not oppose the import of completely knocked down (CKD) vehicles from India, according to Indus Motors Limited Marketing Director Ali Asghar Jamali. He was speaking to the media on the launch of the Toyota Dream Car contest, held simultaneously at Toyota Central Motors and Toyota Society Motors, on Sunday. He said that the local industry had already conveyed its views on awarding the most favored nation status to India, and recommended that the import of completely built up units not be allowed.

“We are ready to compete with Indian automobiles, as we believe that Pakistani assembled cars are no less in standard and can easily compete with them”, Jamali  said.

The auto industry has welcomed trade liberalisation with India, but has some reservations about import of certain finished products which are also produced in Pakistan. They say if Pakistan starts importing finished products, growth in the local industry will grind to a halt.

According to Jamali, the government has assured auto parts manufacturers that the domestic industry will be protected and a negative list maintained, despite recent moves to further open up commerce between the two countries. The negative list contains items on which the government imposes tariff barriers to protect the local industry.

“The automobile industry is satisfied with the assurance given by Commerce Secretary Zafar Mahmood and as long as the local vendors do not get hurt, we will not oppose trade liberalisation with India”, he said.

Published in The Express Tribune, February 14th, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/335976-cars-1329172945/335976-cars-1329172945.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Thawing ties: Indian commerce minister due today</title>
			<link>https://tribune.com.pk/story/335386/eyeing-better-ties-indian-commerce-minister-heads-to-pakistan</link>
			<comments>https://tribune.com.pk/story/335386/eyeing-better-ties-indian-commerce-minister-heads-to-pakistan#comments</comments>
			<pubDate>Mon, 13 Feb 12 04:57:15 +0500</pubDate>
			<dc:creator>
				<![CDATA[afp]]>
			</dc:creator>
			<category><![CDATA[Business]]></category><category><![CDATA[World]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=335386</guid>
			<description>
				<![CDATA[Sharma will be leaving for Lahore to hold trade talks with his Pakistani counterpart, Makhdoom Amin Fahim.]]>
			</description>
			<content:encoded>
				<![CDATA[India is committed to removing barriers that restrict trade with Pakistan, the country’s Commerce Minister Anand Sharma said on Sunday.

“We want to build bridges of confidence and trust which is imperative to promote two-way trade between the two countries,” Sharma told a news conference in New Delhi ahead of his visit to Pakistan.

Sharma will be leaving for Lahore on Monday, via the Wagah border, to take part in a three-day ‘India Show’ and hold trade talks with his Pakistani counterpart, Makhdoom Amin Fahim. The visit comes in the wake of a recent rapprochement between the two countries and signs of warming in their fractious relations.

An array of legal and regulatory barriers has restricted official exchanges to $2.7 billion but Sharma said he was hopeful the sum would jump in the coming years.

“We hope to double this figure in a three-year period. Once direct trade through (the) land route is facilitated, there will be a manifold increase,” said Sharma, who will head a 120-strong delegation of business leaders and officials.

At present, Pakistan maintains a list of 1,945 items allowed to run from India to Pakistan, only 108 of which can be trafficked directly by road through Wagah.

Pakistan granted India ‘Most-Favoured Nation’ status last year, paving the way for a radical reorganisation of trade. In 1996, India had granted Pakistan a similar status, intended to remove discriminatory higher pricing and duty tariffs.

Sharma said Pakistan had shown the willingness to move “towards a regime which deepens and diversifies our trade,” and India, on its part, was working towards visa reforms. Deepening economic engagement is seen as crucial to establishing lasting peace between the two neighbours.

Published in The Express Tribune, February 13th, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/335386-aminfahimanan_1735799875/335386-aminfahimanan_1735799875.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Free trade: ‘Pakistan, India both violating WTO rules’</title>
			<link>https://tribune.com.pk/story/324872/free-trade-%e2%80%98pakistan-india-both-violating-wto-rules%e2%80%99</link>
			<comments>https://tribune.com.pk/story/324872/free-trade-%e2%80%98pakistan-india-both-violating-wto-rules%e2%80%99#comments</comments>
			<pubDate>Fri, 20 Jan 12 21:24:09 +0500</pubDate>
			<dc:creator>
				<![CDATA[our.correspondent]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=324872</guid>
			<description>
				<![CDATA[Commerce secretary says New Delhi and Islamabad need to remove non-tariff barriers.]]>
			</description>
			<content:encoded>
				<![CDATA[Like Pakistan, India too is violating World Trade Organisation (WTO) rules by opting for a discriminatory investment regime against Islamabad but the policymakers are not interested to push New Delhi to amend its rules before doing the same themselves.


In a briefing to the media here on Friday, Commerce Secretary Zafar Mahmood said India has Pakistan-specific non-tariff barriers to restrict trade in services and block investment from Islamabad. He, however, said New Delhi did not have non-tariff barriers for trade in goods.

He said he had discussed this issue with his Indian counterpart but the government would not push for resolving the issue before establishing a non-discriminatory trade regime, commonly known as the most-favoured nation status.

Pakistan is not complying with the WTO regime and has added Annexure G to its Export Policy Order that restricts import of Indian goods to only 1,958 items.

The cabinet has authorised the commerce ministry to negotiate with India normalisation of bilateral trade.

“Pakistan will first negotiate outstanding issues on goods and then matters relating to services will be taken up,” said Mahmood while responding to a question.

Commerce Minister Makhdoom Amin Fahim, who was also present during the briefing, dispelled the impression that Pakistan was dragging its feet on trade normalisation with India under pressure from military circles and said “all stakeholders are on board for trade normalisation including the military”.

He said Indian Commerce Minister Anand Sharma would visit Pakistan from February 13 to 16 in an effort to push forward the trade normalisation process. A delegation of Indian businessmen will accompany the minister and will take part in the “Made in India” exhibition.

Fahim said the ministry has moved a summary to Prime Minister Yousaf Raza Gilani, seeking his permission to allow India to display even those goods that could not be imported from India presently.

During the visit, Pakistan would negotiate three pacts with India to ensure a level playing field for its exporters before implementing the free trade regime, said Mahmood.

First is customs cooperation agreement to address Pakistani exporters’ complaints about high taxes in India, second is mutual recognition agreement for standardisation of quality standards and third is grievances agreement to address consumer protection issues.

In September last year, Pakistan decided to replace the positive trade list comprising 1,958 items with negative list by February 2012. However, Fahim said the negative list, containing items that would not be traded between the two countries, would only be implemented after ensuring protection to the local industry.

He said Pakistan may impose quotas on Indian imports under safeguards policy, duly recognised by the WTO.

However, the minister urged pharmaceutical and automobile manufacturers to increase their competitiveness instead of seeking protection.

WTO waiver

Fahim announced that the WTO would likely give a waiver to the European Union package for duty-free access to export of 75 items from Pakistan. He said the WTO’s Committee on Customs Valuation of the Council for Trade in Goods would meet on February 1 as all opposing countries have withdrawn their objections.

However, the commerce secretary said to address the concerns of competing countries like Bangladesh, Brazil and Peru the EU has proposed imposition of quotas on duty-free exports. He said the quota would be 20 per cent higher than average exports made to Europe in the last three years.

The EU had offered duty-free exports in response to the devastating floods of 2010 but the matter has dragged on in the WTO due to opposition from India and other countries.

Published in The Express Tribune, January 21st, 2012.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/324872-wtologo-1327093620/324872-wtologo-1327093620.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Malik dismisses Gilani resignation, coup rumours; no clash of institutions</title>
			<link>https://tribune.com.pk/story/323296/rehman-malik-dismisses-gilani-resignation-coup-rumours-no-clash-of-institutions</link>
			<comments>https://tribune.com.pk/story/323296/rehman-malik-dismisses-gilani-resignation-coup-rumours-no-clash-of-institutions#comments</comments>
			<pubDate>Tue, 17 Jan 12 23:17:16 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=323296</guid>
			<description>
				<![CDATA[Malik says government will not write letters, chairman NAB though was independent, can write letters to Swiss courts.]]>
			</description>
			<content:encoded>
				<![CDATA[Federal Interior Minister Rehman Malik in an interview to the Indian news channel, New Delhi Television (NDTV) said that Prime Minister Yousaf Raza Gilani, after having been backed by the National Assembly, will not be resigning.

Speaking to NDTV correspondent, Barkha Dutt in Islamabad, Malik said that there was no clash of institutions in Pakistan, though this was an impression being created in the media.  He added that the Prime Minister will be appearing before the Supreme Court on January 19 and answer the contempt of court notice against him. Malik added that this will not be the end of the Pakistan Peoples Party (PPP) led government, nor the Premier.

Malik said that the current government had gone beyond previous ones, completing four years in power despite ‘turmoil’. “With the history of Pakistan, normally the government does not cross three years. And, Alhamdulillah, we have done four years with all this turmoil, in your words, but I say that with the difference of opinion, difference of opinion with our political opponents ,” he said.

He added that they had the legitimate mandate for government, “voice of the people of Pakistan has already given us five years. Nobody has right politically, morally to ask us to resign, or even to think about it, to ask to leave before five years.” Malik continued, saying the Opposition, though, was trying its best to topple the government, “Well, the political opponent will keep undoing it. They will keep on doing these things.”

The Interior Minister thwarted rumours that Gilani being summoned before the judicial commission could spell the end of his term. “Prime Minister Gilani is not going to resign. The whole party has backed him yesterday and the people of Pakistan are behind him. So, I think, that all these rumours are after all rumours.” He suggested that those expecting fireworks on January 19 too would be disappointed, “They will be frustrated on Thursday and, of course, it is a process.”

NAB is independent, but the President has immunity

Malik categorically stated that the National Accountability Bureau (NAB) – given under the Law ministry by the incumbent government, was free of influence from the Prime Minister, and hence the NAB was free to write a letter to the Swiss Courts.

“Now the question arises, writing a letter. Now this is up to the NAB, but of course the stand of our party is that the main accused in this case was Benazir Bhutto and Madam Nusrat Bhutto. Now, both are no more in this world. Now, when the main accused is dead, automatically the case is gone,” he said.

He concluded that since the NAB was neither within his office’s jurisdiction or the Prime Minister’s, the prerogative lay with the Chairman NAB to write the letters to Swiss courts. “Because NAB is not under me. So it’s going to be the whole, sole prerogative of the Chairman, NAB. The decision is going to be theirs.”

Malik continued that under the Constitution of Pakistan the President enjoyed immunity, and as per the Swiss Attorney General, the case could not proceed till Zardari was President. “And they [Swiss authorities] have already said that ‘Your President stands immune to that. Because of the immunity we will not move forward.”

Mansoor Ijaz too needs to be questioned

Regarding Mansoor Ijaz and the memogate case, Malik said that given the Pakistani-American had spoken ill of the Pakistan army, ISI and about how he had brought down Benazir Bhutto’s government, and that he must stand to answer about these as well when facing the commission.

“He has to explain, number one, on whose behalf did he actually write so much against our agencies who are fighting a war on terror  . . . helping Pakistan? Number two, in a very, very firm way he stated that he was the one who had Benazir’s first government thrown out of power. The Pakistan Peoples Party workers are asking that how can he be that powerful that he can overthrow an elected Prime Minister of a country?”

Malik continued that his team was investigating who were the characters with him and that material collected will be examined. He added, in context to pressing charges of treason that examining, registering a case, and arresting Ijaz were all different things.

The Interior Minister added that the ISI was trying to clarify the situation, “as far as the ISI are concerned, and them believing in him, I don’t think so. If it is so, he has written so much against the ISI and the Military, do you think they are going to believe? No. In fact ISI is trying to clear the situation.”

Discrediting the memo, Malik said that the memo was a fabrication. “There is an allegation, there is a report, where an Ambassador of a country has been implicated. Now I do not want to say much on it but let me assure you that at the end of the day, you will see this Memogate being nothing but a fabrication to build up a story.”

Malik went on to say that there were family members of Ijaz who were willing to speak up against him. “Some [family] members of the gentleman have approached us from New York.”

No clash of institutions

Malik, describing the current situation in Pakistan as a transition towards democracy, he said “We [government, army, institutions] are all working on one same page. But if the media wants to make good news out of, they want to create bad news, but I think we are going through a transition, both in the media and as a democracy, and in many institutions.”

Describing it a difference of opinion, he added that “Army is doing its job, the Supreme Court is doing its job, the executives are doing their job. Yes there, is a difference of opinion, but that difference of opinion should not be termed as a clash.”

No coup in the country

Dismissing rumours of a coup, Malik said that “as far as my knowledge goes, my interaction with all stakeholders, I can assure you that there is going to be no coup in the country.”

Regarding the unceremonial dismissal of the Defence Secretary, he explained that “in his [Prime Minister Gilani’s] judgment, if a Secretary has not obeyed what he was supposed to do, or if somebody has not observed procedure, so he has taken action according to the powers vested in him.”

Malik deflected the suggestion that Prime Minister Gilani’s statement that “there could not be a state within a state” was directed at the army. “No, I think the inference can be drawn to anything.”

Relations with India and progress on cross border cases

Talking about the relations between India and Pakistan, Malik said that relations had progressed well.

“We have started this dialogue and it has progressed very well. And therefore, the momentum should not be broken. It should continue with the same spirit, with the same determination, because I feel that friendship between India and Pakistan will lead to prosperity in both the countries.”

Regarding the joint commission investigating the Mumbai attack case, and the hurdles and delays faced, Malik said that “I have already given my commitment to Indian authorities, that within one week from the date that has been intimated to us, we will immediately send our Judicial Commission there. “

When asked whether he was frustrated by delays regarding cases, Malik said that “the delay is not on our part. The delay is because of judicial procedure, which is of course cumbersome.”

The Interior Minister suggested that ties between the two countries should focus on a visa regime allowing easier access to people on both sides of the border, “I think that we should be working more towards visas. People from both sides face problems at the moment.”

Malik even suggested that ties between India and Pakistan should be such that the Prime Ministers of both countries could frequent each other’s country to have informal dinner with their counterpart.

“Why should we become so bureaucratic that everything has to go through so many channels? Why shouldn’t the Prime Minister of India one day decide to come and have dinner with Prime Minister Gilani and vice versa.”

Regarding the Most Favoured Nation status, Malik denied that the matter had stalled, however there were a number people concerned about issues like Kashmir and the water issue. “There are a number of other issues. Now, what is important is that, in the given situation, what has been decided has to go forward.”]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/323296-rehmanmalikpid-1326842056/323296-rehmanmalikpid-1326842056.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Make India remove agricultural subsidy before granting MFN: Agri Forum warns</title>
			<link>https://tribune.com.pk/story/317008/make-india-remove-agricultural-subsidy-before-granting-mfn-agri-forum-warns</link>
			<comments>https://tribune.com.pk/story/317008/make-india-remove-agricultural-subsidy-before-granting-mfn-agri-forum-warns#comments</comments>
			<pubDate>Thu, 05 Jan 12 15:20:20 +0500</pubDate>
			<dc:creator>
				<![CDATA[shahram.haq]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=317008</guid>
			<description>
				<![CDATA[Mughees says if rates of agricultural inputs are brought at par with India, agri products could be 25% cheaper.]]>
			</description>
			<content:encoded>
				<![CDATA[Pakistani growers can provide vegetables, fruits, and other agricultural commodities on 25 per cent lower rates than the Indian farmers provided rates of fertiliser, diesel and electricity in Pakistan are brought at par with India for the agricultural sector.

This was claimed by Agri Forum Pakistan chairman Muhammad Ibrahim Mughal while talking to media men on Thursday. Presently input costs for agriculture, livestock, fisheries and poultry are three times higher in Pakistan than in India due to which, Pakistani agricultural produce is expensive in the market, Mughal claimed.

The Agri Forum Chairman stated that the lobby behind declaring India as Most Favored Nation (MFN) should always remember that the cost of agriculture is two to three times higher in Pakistan than India. India was extending Rs1300 billion (in Pak rupee) annual subsidy to its agricultural sector to keep input cost lower. There is no such law or steps taken by the government in Pakistan in this regard, he added.

He said that if growers in Pakistan are given diesel and electricity on rates at par with that in India, prices of agricultural commodities could be lowered by 25 per cent in Pakistan. It would also help increasing the per acre yield, they said.

Ibrahim Mughal said that even India could not extend such a large subsidy to its agricultural sector under the WTO. Mughal suggested that the lobby pushing for the MFN status should first exert pressure on India to withdraw subsidy to its agricultural sector. If input costs in both the countries are brought at par then there was no harm in opening trade, he concluded.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/317008-agriculturereuter-1325776665/317008-agriculturereuter-1325776665.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Pak, India agree to provide multiple entry business visas</title>
			<link>https://tribune.com.pk/story/297580/liberalised-visa-regime-multiple-visa-entry-for-businessmen-a-go</link>
			<comments>https://tribune.com.pk/story/297580/liberalised-visa-regime-multiple-visa-entry-for-businessmen-a-go#comments</comments>
			<pubDate>Fri, 25 Nov 11 14:50:12 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=297580</guid>
			<description>
				<![CDATA[This will allow businessmen to visit up to 10 cities without restrictions.]]>
			</description>
			<content:encoded>
				<![CDATA[Accepting the long-standing demand of businesspersons, the Home Ministry of India and Interior Ministry of Pakistan have agreed to give one-year multiple entry visas to prominent businesspersons of the two countries.

This was announced in Delhi on Friday by Joint Secretary Ministry of Commerce and Industry, India Arvind Mehta and Pakistan High Commissioner to India Shahid Malik, according to details provided by the Saarc Chamber of Commerce and Industry.

Addressing a meeting organised by Federation of Indian Chamber of Commerce and Industry (FICCI) with the Pakistan business delegation, Mehta said, “The one-year multiple-entry visa will allow business persons to visit up to 10 cities with no requirement of a police report and no restriction on places of entry and exit.”

He also added that a note to this effect would be ready in a week for the consideration of the Union Cabinet.

He further sought to assure the Pakistan delegation that the perception of some businesspersons that open trade would swamp Pakistan with Indian goods was misplaced. “Do not be fearful of the future because things are changing,” he said.

The South Asian Free Trade Agreement (Safta) has several safeguards to give comfort to domestic industry as these safeguards would allow imports to be stopped should there be any disruption of the domestic industry, he added.

Mehta also sought to allay the apprehension that India had imposed non-tariff barriers (NTB) on imports from Pakistan. Citing the case of cement imports, he said, there is zero customs duty on cement import, a policy signal that India welcomes cement from Pakistan.

Pakistan High Commissioner Malik, however, remarked that there is genuine apprehension amongst Pakistani business persons about the existence of NTBs. “These barriers do exist and there is no point in brushing this aside,” he said and expressed confidence that the commerce secretaries of the two countries would take steps to dismantle these barriers.

Business community welcomes the move

Karachi Chamber of Commerce and Industry President Mian Abrar Ahmed said the one-year multiple visas had been their foremost demand from the Indian government. “We consider visa restrictions on top of non-trade barriers from India and this is why we asked the Indian High Commission to remove this biggest impediment,” he said.

“Now since businesspersons can move to 10 Indian cities without reporting to the police, I think it will boost trade and commerce between the two countries, he added. Lahore Chamber of Commerce and Industry (LCCI) President Irfan Qaisar Sheikh said the one-year multiple visas will certainly increase the pace of businesses between India and Pakistan.

“Today, it takes more than a month to get an Indian visa which significantly discourages businessmen from going to Delhi and meeting people there,” he said, “Now, since we will get visas swiftly, I hope that day-long business meetings can be planned and businessmen can return to Lahore the same day.”

Sheikh also hoped for a sharp increase in trading activities from Punjab cities near the Indian border like Sialkot, Lahore, Sheikhupura and Faisalabad to India and alternatively from Indian cities like Amritsar, Delhi and Chandigar into Pakistan.

Published in The Express Tribune, November 26th, 2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/297580-USVisa-1322232446/297580-USVisa-1322232446.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Question hour session: MFN status to India still in ‘embryonic stage’, says minister</title>
			<link>https://tribune.com.pk/story/297107/question-hour-session-mfn-status-to-india-still-in-%e2%80%98embryonic-stage%e2%80%99-says-minister</link>
			<comments>https://tribune.com.pk/story/297107/question-hour-session-mfn-status-to-india-still-in-%e2%80%98embryonic-stage%e2%80%99-says-minister#comments</comments>
			<pubDate>Fri, 25 Nov 11 04:43:37 +0500</pubDate>
			<dc:creator>
				<![CDATA[umer.nangiana]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=297107</guid>
			<description>
				<![CDATA[Fahim tells house Pakistan gave MFN status its trading partners in WTO leaving out India and Israel.]]>
			</description>
			<content:encoded>
				<![CDATA[The process of granting most favoured nation (MFN) status to India was still in its embryonic stage, said a minister during the question hour session of the National Assembly, as deliberations between the two countries to remove certain reservations by Pakistan are underway.


Textile Minister Makhdoom Shahabuddin added that the commerce secretaries of India and Pakistan were discussing the issue “to remove all reservations and to make the move mutually beneficial.”

In a written reply to a query, Commerce Minister Makhdoom Amin Fahim told the house that Pakistan had given MFN status to all its trading partners in the World Trade Organisation (WTO), leaving out India and Israel.

“The imports from India are limited to the items included in Annex G of the Import Policy Order and imports from Israel are prohibited under this order,” said the minister. He added that one of the benefits from increased trade between the two countries would be the creation of jobs in export sectors.

Fahim also commented on the Afghan-Pakistan Transit Trade Agreement, saying that the agreement gave Pakistan access to Central Asian states through 17 routes offered by Afghanistan. In return, Afghanistan would have access to Pakistan’s sea ports including Karachi, Port Qasim and Gwadar ports.

Permanent UN membership  

Meanwhile, Foreign Minister Hina Rabbani Khar informed the National Assembly that Pakistan was not seeking permanent membership of the United Nations Security Council but it is advocating a reform that is based on the principle of sovereign equality of member states as enshrined in the UN charter.

“The very notion of permanent membership negates the essence of democracy and accountability so we have opposed creation of new centres of privilege by expansion in the permanent membership category for individual member states,” Khar said.

The minister said Pakistan had consistently advocated for expansion in the non-permanent membership category of the UN Security Council.

Pakistan Railways

Federal Minister for Railways Haji Ghulam Ahmed Bilour told the National Assembly that Pakistan Railways (PR) was in the process of procuring 150 diesel electric locomotives within the next three years, adding that the invitation for international bidding proposals was underway. Bilour also said that PR had acquired no locomotives on lease in 2011-12.

Published in The Express Tribune, November 25th, 2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/297107-makhdoomshahabuddinpid-1322196128/297107-makhdoomshahabuddinpid-1322196128.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Free trade or not?: Negative list restricts MFN benefits, says commerce secretary</title>
			<link>https://tribune.com.pk/story/296092/free-trade-or-not-negative-list-restricts-mfn-benefits-says-commerce-secretary</link>
			<comments>https://tribune.com.pk/story/296092/free-trade-or-not-negative-list-restricts-mfn-benefits-says-commerce-secretary#comments</comments>
			<pubDate>Tue, 22 Nov 11 22:01:52 +0500</pubDate>
			<dc:creator>
				<![CDATA[kashif.hussain]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=296092</guid>
			<description>
				<![CDATA[Mehmood says local industry to be protected.]]>
			</description>
			<content:encoded>
				<![CDATA[Secretary Commerce Zafar Mehmood has said in the presence of a negative trade list, India cannot be called a most-favoured nation (MFN) in practical terms.


Talking to the media at the Trade Development Authority’s office here on Tuesday, Mehmood said the negative list would be prepared in such a way that would provide protection to domestic industries which had reservations about the grant of MFN status to India.

He said the commerce ministry was holding consultations with the associations of industries and exporters and the negative list was being prepared in the light of fears and reservations expressed by the industry. “Draft of the negative list will be presented to the cabinet by February 2012,” he said.

According to Mehmood, the Generalised Agreement on Tariff and Trade (GATT) bound Pakistan to trade with all member countries without any discrimination. In addition to this, Pakistan as a member of the World Trade Organisation (WTO) is also responsible to provide equal trade opportunities to WTO members.

He recalled Pakistan had earlier given India the MFN status from 1947 to 1965 and this continued even during the Kashmir war. During this period, trade between the two countries continued through various land routes including two in Sindh.

For timber trade, the land route was in Punjab while there were also other routes.

He pointed out traders of the two countries had a trust deficit and confidence-building measures would take some time to play an effective role.

He said the MFN status was neither a title nor an award and it would not affect other issues between the two countries in any way. “Despite granting India the MFN status, we can talk about resolving all issues including Kashmir and Siachin,” he said.

He underscored the importance of media, saying it could play a vital role in overcoming psychological barriers hindering the two-way trade.

He said India could prove a big market for Pakistani products, but exporters should be aware of opportunities.

The commerce ministry has prepared a programme for the exporters in which they will be informed about the potential of the Indian market, trade rules and regulations and quality and hygiene standards.

The Trade Development Authority will also hold seminars in the country’s big cities, where the industry will be briefed about competition with India, preparing them to compete well with industries of the neighbouring country.

Published in The Express Tribune, November 23rd, 2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/296092-tradeindiapak_1735627004/296092-tradeindiapak_1735627004.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>MFN status and beyond</title>
			<link>https://tribune.com.pk/story/292733/mfn-status-and-beyond</link>
			<comments>https://tribune.com.pk/story/292733/mfn-status-and-beyond#comments</comments>
			<pubDate>Wed, 16 Nov 11 17:02:31 +0500</pubDate>
			<dc:creator>
				<![CDATA[Rustam Shah Mohmand]]>
			</dc:creator>
			<category><![CDATA[Opinion]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=292733</guid>
			<description>
				<![CDATA[The bedrock of a lasting relationship between India and Pakistan is people-to-people contact.]]>
			</description>
			<content:encoded>
				<![CDATA[One of the most remarkable developments of the 20th century has been the capacity of nations to bolster economic ties even though they remain sharply divided on many vital issues. Thus the US and the former Soviet Union, despite confronting each other for decades, allowed bilateral trade relations to develop. The China-Taiwan and China-India relations are a case in point. A notable exception was India and Pakistan. There was (and still is) a small but powerful lobby that argues that trade relations can only happen once the Kashmir issue has been ‘resolved’.

The proponents of such a line of thinking would acquiesce in making the 1.38 billion people of the subcontinent hostage to their paranoid concept of nationhood. This lobby has, by and large, held sway over the formulation of policy since the inception of this country. Even if the Kashmir problem is not resolved in the next 50 to 100 years, that would, in their view, be no justification to move to normalise relations in key sectors like bilateral trade. Sadly, their position remained unchallenged because espousing a different viewpoint was considered by many to be risky in terms of ‘political survival’.

There is now a palpable movement for change in the obscurantist mindset. The trouble is, those who are prisoners of a mindset or philosophy that despises any dispassionate evaluation of pros and cons of a certain policy do not seem to be amenable to logic and reasoning.

Not very long ago, two eminent Pakistani economists appeared on two different TV talk shows — Mr Shahid Javed Burki, a former finance minister and world bank officer, Dr Ishrat Husain, a former state bank governor. They both argued strongly in favour of normalisation of trade with India and proved, with the help of verifiable statistics, that Pakistan would be a net gainer by any such opening of trade. In view of their very well-reasoned and emphatic assertions, there should be no room for any further misgiving and doubts about any negative fallout on Pakistan should trade ties be fully normalised.

Some critics view this initiative in a restricted framework. It is argued that some relatively cheap Indian manufacturers would adversely affect a few industries in Pakistan. This may happen in a small number of cases. But the bedrock of a lasting relationship between India and Pakistan is people-to-people contact. There would inevitably be downstream effects, e.g. on transport, hotels and restaurants, and a slow but assured expansion of mutually beneficial contacts in the fields of education, science and technology, agriculture etc. In the ultimate analysis, it would change and herald a new era of more open, transparent and meaningful engagement in a number of sectors. It could change the politics of South Asia.

The two countries have carried a baggage of unresolved issues ranging from Kashmir to Sir Creek. As if that was not enough, Afghanistan is fast emerging as a potential battlefield for a proxy war that both nations must strive to avoid at all costs. In this bleak background, if there is a silver lining, it must be greeted with an open mind and enthusiasm.

More than one-fifth of humanity cannot be in bondage indefinitely because some people would prefer to prolong the agony. They need to wake up to the call of the 21st century.

Published in The Express Tribune, November 17th,  2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/292733-RustamShahMohmandNew-1321451693/292733-RustamShahMohmandNew-1321451693.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Bringing down barriers: Phased expansion of India trade from February</title>
			<link>https://tribune.com.pk/story/292309/india-pakistan-report-gains-in-secretary-level-trade-talks</link>
			<comments>https://tribune.com.pk/story/292309/india-pakistan-report-gains-in-secretary-level-trade-talks#comments</comments>
			<pubDate>Tue, 15 Nov 11 16:10:41 +0500</pubDate>
			<dc:creator>
				<![CDATA[Aditi Phadnis]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=292309</guid>
			<description>
				<![CDATA[Pakistan agrees to switch from ‘positive’ to ‘negative’ trading list.]]>
			</description>
			<content:encoded>
				<![CDATA[Politicians continued to play to the gallery while bureaucrats worked hard, converting wishful rhetoric into a tangible roadmap.

In what may be construed as small but significant gains, commerce secretaries of Pakistan and India on Tuesday, fleshed out a sequential plan towards liberalisation of trade between the neighbouring countries.

A joint statement issued by Commerce Secretary Zafar Mahmood and his Indian counterpart Rahul Khullar, at the conclusion of the two-day talks between them in New Delhi, set a timeline for the operationalisation of Most Favoured Nation (MFN) status for India and the obliteration of trading lists, positive or negative.

The joint statement came as Indian Defence Minister AK Anthony warned not to expect too much from the ongoing dialogue.

Path to free trade

Currently, Pakistan maintains a ‘positive’ list, comprising about 2,000 items that it trades with India. In the first stage, according to the statement, Pakistan will switch to a ‘negative’ list approach, with the list finalised and ratified by February 2012. Thereafter, the countries will be able to freely trade all items other than those on the negative list.

In the second stage, the negative list shall be phased out, the statement adds. The timing for this phasing out will be announced in February 2012, when the list is notified. It is expected that the phasing out of negative list will be completed before the end of 2012.

Mahmood said that as a member of the World Trading Organisation (WTO), Pakistan was committed to granting MFN status to India.

“Under WTO, members are to grant MFN to each other. That obligation stands and will be completed when there is no list (positive or negative),” Mahmood told reporters, adding that MFN would be given once the progress on the lists is reviewed.

Khullar said the removal of the positive and negative lists and the gradual phasing out will give a significant boost to trade between the two countries.

Other steps

At the conclusion of talks today, both sides decided to increase trade through the Attari-Wagah land route by the end of February 2012 by increasing the number of trading hours and allowing for movement of containers into each other’s territories.

A committee set up to examine electricity trade will meet in Islamabad by the first week of December. Grid connectivity between Amristar and Lahore to enable trading of up to 500MW of power will be examined at the meeting, the joint communiqué said.

The two countries also discussed the initiation of trade in petroleum products and agreed upon slashing duties on a specified number of items in a phased manner. They reiterated the need to increase bilateral trade from the current $2.6 billion to $6 billion by 2014.

Both sides also decided to encourage outreach programmes between business communities of the two countries. A delegation comprising officers from various regulatory bodies will visit Lahore and Karachi in the first quarter of 2012 to apprise them of India’s trading standards and regulations.

To allow for this and subsequent such exchanges, secretaries from the Indian Home Ministry and Pakistan’s Interior Ministry will meet in December to finalise a deal on creating a liberal business visa regime.

Progress on all these fronts will be reviewed by the commerce secretaries during April-May in Islamabad. Meanwhile, the Indian minister for commerce, industry and textiles, Anand Sharma, is likely to visit Pakistan by February 2012 to meet his Pakistani counterpart Makhdoom Amin Fahim.

Both sides also agreed to institute a mechanism for redressing grievances arising from clearance of trade consignments at land, sea and airports, read the joint statement.

‘Don’t expect miracles’

The Indian defence minister, meanwhile, struck a cautious note: “Don’t expect miracles,” Antony said on the sidelines of a conference organised by the Indian Institute of Defence Studies and Analyses, a government-funded defence think tank. “At the moment, we find a positive sign in relations with Pakistan in the area of economic cooperation. It is a good beginning [and] a positive signal. But we cannot expect miracles. Beyond that we cannot say,” Antony said.

“There are already clear signs that India-Pakistan trade relations might improve and expand. The expansion in cooperation has created an atmosphere to expand the dialogue on security cooperation,” he said.

(Read: Pakistan-India trade)

Published in The Express Tribune, November 16th, 2011.

Correction: An earlier version of this article carried an incorrect caption with the image. ]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/292309-CommerceSecre_1735627004/292309-CommerceSecre_1735627004.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Pakistan-India trade</title>
			<link>https://tribune.com.pk/story/292179/pakistan-india-trade</link>
			<comments>https://tribune.com.pk/story/292179/pakistan-india-trade#comments</comments>
			<pubDate>Tue, 15 Nov 11 15:40:11 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=292179</guid>
			<description>
				<![CDATA[Heartening though the trade talks may be, they merely scratch the surface of economic potential in improved relations.]]>
			</description>
			<content:encoded>
				<![CDATA[Rare is the Pakistan-India summit where the chances of success are higher than those of failure. Yet that is precisely the case with the two-day trade summit held in New Delhi between the commerce secretaries of the two countries. The scope of the trade meeting is not too ambitious — India will use to it to clarify Pakistan’s decision to grant it Most Favoured Nation trading status while Pakistan is trying to get a more liberal visa regime for its businessmen. If progress is made on these issues, we can expect India to lift trade barriers on the import of Pakistani goods and for us to reciprocate by adding 2,000 goods to the positive list of items India can export to Pakistan. Needless to say, the improvement in relations between the two countries has been so remarkable that both sides are willing to set aside their main concerns of Kashmir and terrorism for the time being to cooperate on matters of mutual interest. This shows a maturity in the approach by Pakistan and India, both of whom have sometimes given the impression in the past that they are more interested in hurting their neighbour than helping themselves.

Heartening though the trade talks may be, they merely scratch the surface of the economic potential in improved relations. Currently, trade between Pakistan and India is worth only an anaemic $2.6 billion. This number could easily be quadrupled just by the lifting of trade barriers. In principle, this is what Prime Minister Yousaf Raza Gilani and his counterpart Dr Manmohan Singh agreed to on the sidelines of the Saarc summit in the Maldives. Singh offered to sign a Preferential Trade Agreement with Pakistan that would eliminate all trade barriers by 2016. Needless to say, this would be a positive development. Nonetheless, we would be wise to remember that economic cooperation, while making political cooperation more likely, doesn’t guarantee peace between the two countries. Although Gilani and Singh are wisely ignoring the elephant in the room, relations could easily be derailed, perhaps permanently, if there is another terrorist attack in India that can be traced back to Pakistan. Friendship between the two countries has been initiated but the foundations on which it is built are still extremely weak and prone to collapse.

Published in The Express Tribune, November 16th,  2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/292179-tradeindiapak_1735627004/292179-tradeindiapak_1735627004.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Secretary-level talks: India, Pakistan pledge to normalise trade ties</title>
			<link>https://tribune.com.pk/story/291611/india-pakistan-trade-talks-begin-in-new-delhi</link>
			<comments>https://tribune.com.pk/story/291611/india-pakistan-trade-talks-begin-in-new-delhi#comments</comments>
			<pubDate>Tue, 15 Nov 11 05:04:23 +0500</pubDate>
			<dc:creator>
				<![CDATA[Aditi Phadnis]]>
			</dc:creator>
			<category><![CDATA[World]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=291611</guid>
			<description>
				<![CDATA[Top officials reach ‘broad agreement’ in New Delhi to liberalise business visas to would help spur cross-border...]]>
			</description>
			<content:encoded>
				<![CDATA[While operationalisation of the Most Favoured Nation (MFN) status offered to India by Pakistan remained an issue to be discussed, both sides tried to take their trade relations to the next level as their top officials began talks on Monday to flesh out a plan to open up trade.

Commerce Secretary Zafar Mahmood and his Indian counterpart Rahul Khullar reached “broad agreement” and emphasised on the establishment of a preferential trading arrangement (PTA) between the neighbouring countries at the two-day discussions in New Delhi — aimed at doubling annual trade in the next three years to $6 billion.

Mahmood also made a poignant and heartfelt appeal to India during the official talks.

“I want to assure you: Please have trust and faith in the process (of the normalisation of trade). Times have changed. The world is coming closer,” he said in his opening remarks.

Mahmood said Pakistan “hopes to cover a lot of distance” during this week’s talks.

“Through this meeting we want to create an atmosphere through which the composite dialogue can go forward.”

Response

India responded by thanking Pakistan for taking the first steps towards offering the MFN status and flagged visa liberalisation as the biggest hurdle in bilateral trade.

“We recognise that the current visa arrangements are one of the most significant barriers to expanding our bilateral trade,” the Indian commerce secretary said during the meeting.

Khullar said India and Pakistan have reached a “broad agreement” to liberalise business visas which would help spur cross-border trade.

The Indian commerce secretary said that business communities on both sides were also expecting a “substantial breakthrough” to not only normalise the trading relations between both the neighbours but also establish a broad-based preferential trade agreement.

“We are hopeful that an agreement shall be finalised during the next round of home secretary level talks, slated for December,” he told the delegates.

During the recently concluded South Asian Association for Regional Cooperation (Saarc) Summit in the Maldives, Indian Prime Minister Manmohan Singh had highlighted the need to establish a PTA with Pakistan during his meeting with Pakistan Prime Minister Yousaf Raza Gilani.

“The cabinet not only gave its full approval but also mandated the commerce ministry to achieve complete normalisation of trade with India,” Mahmood told the meeting in New Delhi.

Khullar replied: “We welcome the decision recently taken by the Government of Pakistan to accord the MFN status to India and to the mandate given for full normalisation of bilateral trade relations as also meeting of all legal obligations”.

In September, during the visit of Pakistan’s Commerce Minister Makhdoom Amin Fahim, India and Pakistan had set the target of achieving $6 billion worth of bilateral trade from $2.7 billion at present.

“We are open to preparing a roadmap with Pakistan for a PTA under the South Asian Free Trade Area (SAFTA) process. I hope that through our discussions starting today [Monday], we will achieve a greater clarity on such arrangements. Our goal should be to reach peak tariff levels of no more than five per cent for all major traded and tradable commodities,” Khullar added.

Meanwhile, India’s Commerce Minister Anand Sharma has said that he would lead a trade delegation to Islamabad next February at the invitation of his Pakistani counterpart, Fahim. (WITH ADDITIONAL INPUT FROM AFP)

Edited by Musab Memon

Published in The Express Tribune, November 15th, 2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/291611-ZafarMahmoodphotoafp-1321333452/291611-ZafarMahmoodphotoafp-1321333452.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Kashmiri traders demand banking facility</title>
			<link>https://tribune.com.pk/story/291834/kashmiri-traders-demand-banking-facility</link>
			<comments>https://tribune.com.pk/story/291834/kashmiri-traders-demand-banking-facility#comments</comments>
			<pubDate>Mon, 14 Nov 11 21:15:32 +0500</pubDate>
			<dc:creator>
				<![CDATA[ah.nizami]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=291834</guid>
			<description>
				<![CDATA[Call for inclusion of more items in trade list.]]>
			</description>
			<content:encoded>
				<![CDATA[Jammu and Kashmir Joint Chamber of Commerce and Industry (JKJCCI), the sole representative of business fraternity of Azad Jammu and Kashmir and Indian-held Kashmir, has expressed concern over delay in banking facilities for traders engaged in trade across the Line of Control (LoC) and continuing of business on the basis of barter system.

The trade body observed that lack of banking facilities has deprived majority of Kashmiris on both sides of the LoC of the opportunity to trade, limiting the benefits to a few divided families.

In an interview with The Express Tribune here on Monday, JKJCCI President Zulfiqar Abbasi demanded a detailed review of the list of traded items and expansion of the trade list. He also called for putting in place an effective mechanism to step up trade.

Abbasi said that banking facility must be introduced soon and more items should be added to the trade list in consultation with the JKJCCI and regional chambers.

Praising the governments of Pakistan and India for expanding confidence building measures (CBMs), he reiterated that LoC trade will help create a peaceful and helping environment for a sustainable solution of the Kashmir issue in accordance with the wishes of the people of Jammu and Kashmir.

Abbasi said that the two-day talks between commerce secretaries of India and Pakistan, which began in New Delhi on Monday, should lead to promotion of bilateral trade between the two countries.

Published in The Express Tribune, November 15th,  2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/291834-TradetruckPak_1735627004/291834-TradetruckPak_1735627004.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Trade talks with India: High hopes, mild expectations in New Delhi</title>
			<link>https://tribune.com.pk/story/291490/trade-talks-with-india-high-hopes-mild-expectations-in-new-delhi</link>
			<comments>https://tribune.com.pk/story/291490/trade-talks-with-india-high-hopes-mild-expectations-in-new-delhi#comments</comments>
			<pubDate>Mon, 14 Nov 11 03:51:51 +0500</pubDate>
			<dc:creator>
				<![CDATA[Aditi Phadnis]]>
			</dc:creator>
			<category><![CDATA[World]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=291490</guid>
			<description>
				<![CDATA[Analysts say main purpose of commerce secretary’s  visit is to gain traction on trade liberalisation.]]>
			</description>
			<content:encoded>
				<![CDATA[Hopes are high but expectations mild as Pakistan’s Commerce Secretary Zafar Mahmood arrived in the Indian capital on Sunday to provide a fresh impetus to trade talks between the two countries.


The item most likely to top the agenda would be multi-entry visas to businessmen on both sides, Indian officials say, followed by the operationalisation of the most favoured nation (MFN) status to India.

The Pakistani cabinet recently granted an approval to the commerce ministry to negotiate the implementation of the MFN status with India.

Mahmood will meet his Indian counterpart Rahul Khullar on Monday, and review the decisions the two commerce secretaries had taken during their last meeting in Islamabad in April, which was seen as a milestone for bilateral trade between the neighbours.

“Don’t expect earth-shattering announcements,” warns Pradeep Mehta, secretary general of a Jaipur-based NGO.

“The main purpose of the visit is to get some traction on several other issues like the negative and positive list, reduction of non-tariff barriers, visa liberalisation and so on,” Mehta said.

Besides MFN, both sides have decided to establish a preferential trade agreement that will see tariff reduction on a number of items that are traded between both countries and in larger quantities, reduction of sector-specific tariff and non tariff barriers.

Both sides are also working towards creating a multiple-entry visa for businessmen from both sides. At present, the home ministry is examining the issue.

“What had happened in April was a major step, but the level of implementation has become a drag,” said Ram Upendra Das, senior fellow at the Research and Information System for Developing Countries.

“Nevertheless, overall there is a forward movement despite fluctuations and volatilities. At least both sides are now talking, which is important,” Das added.

Both sides have also agreed to expand trade in all types of petroleum products and electricity.

Trade between the two countries stood at $2.6 billion in 2010-11. Both sides have set a target of $6 billion worth of bilateral trade in the next three years.

At present, more than 12,000 items are there on Pakistan’s negative list while 1,948 items come under the positive list.

Meanwhile, Pakistan is expected to prune its negative list of items soon, allowing India to export its textiles, engineering goods, chemicals, raw materials, spices and other such materials to Pakistan.

Published in The Express Tribune, November 14th,  2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/291490-pakistanindia-1321242495/291490-pakistanindia-1321242495.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>The week in focus</title>
			<link>https://tribune.com.pk/story/291319/the-week-in-focus-53</link>
			<comments>https://tribune.com.pk/story/291319/the-week-in-focus-53#comments</comments>
			<pubDate>Sun, 13 Nov 11 23:37:55 +0500</pubDate>
			<dc:creator>
				<![CDATA[ghazanfar.ali]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=291319</guid>
			<description>
				<![CDATA[Opening up of trade and thaw in ties between Pakistan and India have been dominating headlines for the past two weeks.]]>
			</description>
			<content:encoded>
				<![CDATA[Opening up of trade and thaw in ties between Pakistan and India have been dominating headlines for the past two weeks amid praise and apprehension about the impact it will have on Pakistan’s trade and industry as well as the overall economy in the long run.

In order to explore ways to boost trade and move the liberalisation process forward, commerce secretaries of the two countries are meeting this week. The talks come after Pakistan granted India most-favoured nation (MFN) status and allowed import of more items from India over the past two weeks.

To add his voice to the positive climate, the Indian foreign secretary said Delhi would work towards a preferential trade agreement with Islamabad and easing of visa restrictions for businessmen.

Keeping the positive momentum going, prime ministers of the two countries also met on the sidelines of a South Asian Association for Regional Cooperation (Saarc) summit in the Maldives last week and vowed to start a new chapter in their relations.

However, they must ensure that the normalisation process continues and is not derailed by any change of face at the helm. This is essential if the two are to achieve the objectives of reducing prevalent poverty and increased contacts between businesses and ordinary people on the two sides.

Though the two countries share a population of over one billion, official bilateral trade is far below the potential. Bilateral trade stood at $1.4 billion in 2009-10 while unofficial trade was estimated at $3 billion which was routed through Gulf countries.

Businessmen though welcome the grant of MFN status to India, but say the government should tread carefully and ask India to reciprocate the move and dismantle non-tariff barriers that restrict exports from Pakistan. Fearing the onslaught of the much bigger Indian auto industry, domestic auto manufacturers have sought protection and opposed import of finished products before the industry develops and strengthens itself to compete with its neighbour.

Some analysts, while calling the moves significant, believe liberal rules will help increase direct trade with India, reduce business conducted via third countries, bring revenues, cut transportation cost, reduce cargo delivery time and lower prices of goods. This is in line with the worldwide wave to step up regional trade and alliances to benefit massively from geographical proximity among countries.

As both India and Pakistan face scarcity of resources, they will be able to buy goods and services from each other. Energy-deficient Pakistan can import electricity from India while Delhi can purchase cement from Islamabad which has a huge surplus capacity.

In addition to this, analysts point to the fruits of rapidly growing economies of India and China, which Pakistan can definitely enjoy through increased trade with neighbouring countries and enter into the ranks of fast growing countries.

However, some analysts are sceptical about open trade with India, saying it will leave a negative impact on Pakistan as the industries will not be able to compete effectively with bigger size Indian companies, which will have a dominant role in most fields. Only cement export is a major area where Pakistan will have an upper hand.

An analyst points out the “access given to India to export its goods through Pakistan to Afghanistan” under the transit trade arrangement with Kabul, which has largely gone unreported in the media. Pakistan has a strategic geographical location, which he says can be cashed by imposing taxes and duties on transit trade, but the country has lost this opportunity.

(the writer is incharge Business desk for the Express tribune and can be contacted at ghazanfar.ali@tribune.com.pk)

Published in The Express Tribune, November 14th,  2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/291319-GhazanfarAli-1321204990/291319-GhazanfarAli-1321204990.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Free trade and the MFN</title>
			<link>https://tribune.com.pk/story/291247/free-trade-and-the-mfn</link>
			<comments>https://tribune.com.pk/story/291247/free-trade-and-the-mfn#comments</comments>
			<pubDate>Sun, 13 Nov 11 16:57:17 +0500</pubDate>
			<dc:creator>
				<![CDATA[kuldip.nayar]]>
			</dc:creator>
			<category><![CDATA[Opinion]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=291247</guid>
			<description>
				<![CDATA[The MFN is only the means, not the end by itself. I do not envisage free trade of all goods straightaway.]]>
			</description>
			<content:encoded>
				<![CDATA[Pakistan envoy Shahid Malik, who has served the longest at New Delhi, appreciates India’s sensibilities. Years of staying in the country have taught him that very few windows open in sombre relations between the two countries. But whenever there is even a small aperture, it should be used fully. Therefore, Malik was quick to remove the misunderstanding on Pakistan’s decision to extend the Most Favoured Nation (MFN) status to India. The impression on the Indian end was that Pakistan was dragging its feet after announcing the MFN status. He said that “there is no question of a U-turn about it”. Prime Minister Yousaf Raza Gilani, too, reiterated the same assurance that the respective ministries have been asked to give concrete shape to the process. People in India should not think that Pakistan is going back on its announcement. The MFN status has been long overdue. Under the WTO commitment, every country has to give it. India extended the status to Pakistan in 1995.

Since MFN was missing at the other end, both could not dismantle non-tariff barriers to facilitate trade. Pakistan was not cooperative. Every time the question of trade was initiated by India, Pakistan brought in Kashmir. I believe that many Pakistan ministers expressed similar kind of fears when the proposal came before their cabinet. The Pakistani commerce secretary’s categorical statement that the Kashmir question would not be diluted allayed their fears. The same thing happened in the case of the media. The government had to say that the army was also on board. The real problem is how to go ahead. The MFN is only the means, not the end by itself. I do not envisage free trade of all goods straightaway. That may take place in due course. Much depends on Pakistan and how its government wants to go about it. Ultimately, it will be the bigger beneficiary. Some concessions will be in order because compared to Pakistan, India is a developed country. For a level playing field, New Delhi may have to take some steps which would make Pakistan feel that it is not under any disadvantage. New Delhi’s initiative may have a salutary effect on relations between India and Pakistan. Both will no doubt increase their trade and give a fillip to manufacturing, so as to cater to new demands. Yet the basic part is that the two may begin to trust each other. Both countries should get hold of the old files. Between 1947 and 1965, there was free trade. So much so that newspapers of Pakistan were sold on the streets of Mumbai and Delhi on the same day as the Indian papers would be in Karachi and Lahore. Both countries know that trade between the two countries is taking place through Dubai and Singapore. It is reported to be worth around $2.5 billion. The MFN status also means that the goods will go across the border in no time. The road from Lahore to Wagah has been widened. India is putting up a huge building to house customs and immigration departments. There is, however, a case for having more points of trade then. The Wagah-Attari border is what comes to people’s mind. But Sialkot-Suchetgarh on the Jammu border is equally suitable for the transit of goods. Trade between the two parts of Kashmir is there but it needs to be pushed more vigorously.

My dream is of free trade for the entire South Asian region. One day we should be able to have an economic union along the lines of Europe. This looks far-fetched at present, however, after nearly 16 years, if MFN can become a reality, why not another economic union? This will require concessions in visa facilities. All the nations in the region should discuss how a single visa can enable a person to travel throughout the region. Because that is what Europe has done to give meaning to trade among the countries. Pro-peace activists on both sides have never given up their efforts to bring the two countries closer and the result is the MFN.

Published in The Express Tribune, November 14th,  2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/291247-KuldipNayarnew-1321196204/291247-KuldipNayarnew-1321196204.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>SAARC’s 20-point agenda</title>
			<link>https://tribune.com.pk/story/290820/saarc%e2%80%99s-20-point-agenda</link>
			<comments>https://tribune.com.pk/story/290820/saarc%e2%80%99s-20-point-agenda#comments</comments>
			<pubDate>Sat, 12 Nov 11 19:33:29 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=290820</guid>
			<description>
				<![CDATA[Fear lingers that once delegates return home, they will forget about the document they just signed, agreed upon.]]>
			</description>
			<content:encoded>
				<![CDATA[Trying to critique the closing agenda or agreement of a summit is a thankless task. Any points of disagreement that may exist are papered over, vague promises of future action are made and then everyone goes home feeling very satisfied with themselves. The recently-concluded Saarc summit in the Maldives followed that model to a tee. The 20-point closing agenda adopted by member countries is impossible to disagree with, filled as it as with high-sounding rhetoric and plans to strengthen regional cooperation. The devil, as always, is in the details. High on the agenda at the Saarc summit was the need to start effectively implementing the South Asian Free Trade Agreement (Safta). The agreement was first signed in 2004, vowed to gradually eliminate tariffs and other trade barriers between South Asian countries and is modelled on the European Union. The goal is to make South Asia a completely free trade zone. The Saarc summit reiterated that but precious little was revealed about how that would be translated into reality.

Other feel-good measures mentioned in the closing agenda are getting the countries to promote the region with a ‘Destination South Asia’ campaign and pledging to work together on disaster management and free flow of capital. Again, these pledges are unobjectionable. It is just that the fear lingers that once the delegations return home from the Maldives, they will forget all about the document they just signed and agreed upon, as has happened so often in the past. This is not to say that the Saarc summit had no value. The region is fraught with tension, particularly in the Indian subcontinent, and so any chance for the leaders of these countries to hold discussions in an informal setting should not be scoffed at. A meeting on the sidelines between Prime Minister Yousaf Raza Gilani and his Indian counterpart Dr Manmohan Singh was followed by positive comments from both sides. However, we have seen this happen many times in the past as well, such as when then Prime Minister Atal Behari Vajpayee came by bus to Pakistan in early 1999 and met his counterpart, then-prime minister Nawaz Sharif. That was followed by Kargil, a few months later! So the security establishments of both nations need to respect the words and intentions of their civilian leaders for there to be a durable peace.

Published in The Express Tribune, November 13th, 2011. ]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/290820-SAARCPHOTOAFP-1321126317/290820-SAARCPHOTOAFP-1321126317.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Economic boost: India to work on preferential trade with Pakistan</title>
			<link>https://tribune.com.pk/story/290769/pakistan-allows-more-imports-from-india-as-ties-improve</link>
			<comments>https://tribune.com.pk/story/290769/pakistan-allows-more-imports-from-india-as-ties-improve#comments</comments>
			<pubDate>Sat, 12 Nov 11 18:59:09 +0500</pubDate>
			<dc:creator>
				<![CDATA[reuters]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=290769</guid>
			<description>
				<![CDATA[Foreign secretary says trade normalisation process to be taken to logical conclusion.]]>
			</description>
			<content:encoded>
				<![CDATA[Indian Foreign Secretary Ranjan Mathai has said India and Pakistan will take the process of normalisation of trade to its “logical conclusion” and Delhi will also work towards a preferential trade agreement with Pakistan and easing of visa restrictions for businessmen.

The remarks came as senior commerce officials of the two countries prepare to meet early next week in New Delhi to explore ways to boost bilateral trade.

As part of measures to open up trade, Pakistan on Friday removed restrictions on the import of 12 more goods from India.

The commerce ministry had requested the Economic Coordination Committee (ECC), the top decision-making body on economic affairs, to increase the number of items that can be imported from India.

“The ECC met on Friday and approved the addition of 12 goods to the positive list of items that can be imported from India,” a ministry official said.

Another official said the goods included machinery and raw materials for the leather and textile industries.

Both countries have been trying to boost their trade following a recent thaw in ties. Relations have improved since they resumed a dialogue in February that was derailed by an attack by militants in Mumbai in 2008.

Prime Minister Yousaf Raza Gilani and his Indian counterpart Manmohan Singh hailed progress in diplomatic ties and promised a“new chapter” in ties when they met on the sidelines of a Saarc summit in the Maldives on Thursday.

Lasting peace between the rivals is seen as essential to South Asian stability and to helping a troubled transition in Afghanistan as NATO-led combat forces plan their military withdrawal in 2014.

Last week, Pakistan said it would grant India most-favoured nation (MFN) status that would help normalise trade by ending restrictions. India gave MFN status to Pakistan in 1996.

Despite having a combined population of more than a billion, official bilateral trade between the two countries stood at $1.4 billion in 2009-10 while an estimated $3 billion unofficial trade is routed through third countries in the Gulf.

Published in The Express Tribune, November 13th, 2011. ]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/290769-Importphotofile-1321087335/290769-Importphotofile-1321087335.JPG" class="featured_image"/>
            </image>
			</item><item>
			<title>MFN status win-win for both cement industries</title>
			<link>https://tribune.com.pk/story/290489/mfn-status-win-win-for-both-cement-industries</link>
			<comments>https://tribune.com.pk/story/290489/mfn-status-win-win-for-both-cement-industries#comments</comments>
			<pubDate>Fri, 11 Nov 11 21:35:52 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=290489</guid>
			<description>
				<![CDATA[Export of surplus Pakistani cement to help cover shortage in India.]]>
			</description>
			<content:encoded>
				<![CDATA[The Indian cement industry which has been facing a hard time to meet its local demand can get help from cross-border peers as Pakistan manufactures more than its requirements, according to an InvestCap research note.

There are roughly 300 small and 130 large plants in India with an installed capacity of around 234 million tons whereas the aggregate production capacity stands at around 167 million tons.

This is fuelling delays in construction schedules and forcing the Indian government to import cement from other countries, says the note.

Importing cement from across the border seems viable price-wise as Pakistani imported cement would be available at a discount of 16% at INR235 per 50kg bag in India compared with Indian cement price of INR280 per 50kg bag.

Pakistani cement manufactures need a place where they can off-load their surplus stock of 10 million tons. Local installed capacity is around 44 million tons, whereas cement demand stands at around 31 million tons including 30% exports and 70% local.

Pakistan has already exported bulk of cement to Afghanistan while India received only a tiny chunk of it.

Local cement manufacturers are exporting cement to India through trains only, the reason for the limited quantity of export.

If India allowed cement imports through Wagha border, it would be more beneficial for the players in the northern region including giants DG Khan Cement as they would face lower transportation cost and improved export margins.  Conversely, exporting cement to India through Gujrat port would benefit southern cement players including Lucky Cement as they are situated nearer to the sea port.

Relations between Pakistan and India seem to be on the right track as Pakistan has finally awarded the Most Favoured Nation status to India and took a step forward to further enhance trade relationships. However, the list of goods is yet to be finalised, says the note. All cement manufacturers are now putting their efforts towards the renewal of the BIS (Board of Indian Standard) licences, adds the note.

However, it is still unclear whether India would allow imports by road or not but, one thing is clear that, if exports to India do materialise, it would provide the ailing local cement industry a breathing space to boost volumetric growth.

Published in The Express Tribune, November 12th,  2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/290489-Cement-1321046364/290489-Cement-1321046364.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Renewed promise of SAARC</title>
			<link>https://tribune.com.pk/story/290246/renewed-promise-of-saarc</link>
			<comments>https://tribune.com.pk/story/290246/renewed-promise-of-saarc#comments</comments>
			<pubDate>Fri, 11 Nov 11 18:00:21 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=290246</guid>
			<description>
				<![CDATA[When India and Pakistan talk peace at Saarc, the region begins to smile with expectations of better days to come.]]>
			</description>
			<content:encoded>
				<![CDATA[When India and Pakistan talk peace at Saarc, the region begins to smile with expectations of better days to come. Prime Minister Yousaf Raza Gilani met with his counterpart Dr Manmohan Singh on the sidelines of the 17th Saarc summit in Maldives on November 10, and said things about relations with India that the opposition in Pakistan has pretended not to like; the BJP reacted the same way to Dr Singh’s description of Gilani as ‘a man of peace’.

Dr Singh was positive and pledged resolution of all outstanding issues. Gilani touched all the expected bases when he said: “We have discussed all core issues including Kashmir. We hope the next round will be more constructive, more positive and will open a new chapter in the history of both the countries”. The atmospherics were good because Pakistan had just awarded India Most Favoured Nation (MFN) status while India had endorsed Pakistan’s non-permanent membership of the UN Security Council, at the same time supporting Pakistan’s concessional trade with the European Union at the WTO.

The world appreciates progress in Pakistan-India relations while the oppositions in both countries find fault with it, backed by hostile TV anchors on both sides. The MFN status has been discussed on Pakistani channels — barring the few big ones — as if the PPP-led government has betrayed the nation. On the Indian side, politicians focused on Pakistan’s non-state actors carrying out terrorist activities in India and accused the ruling party of betraying the Indian people by letting Pakistan off the hook.

The media in Pakistan had low-quality discussions when politicians and some anchorpersons were allowed more airing than they deserved. A commentator on state-owned television actually said that granting MFN status was more important than India’s support at the EU and the UN, forgetting that by delaying this issue, Pakistan had seriously damaged itself in bilateral trade with India, languishing at around $1.5 billion on the basis of 2,000 items.

Some Pakistani anchors saw sinister conspiracies woven by the US behind Pakistan’s grant of transit rights to India’s trade with Afghanistan. Others simply did not know that free trade allowed negative lists for protection of industries when trade is plied between unequal partners. The transit route is actually at the root of the Pakistan-India breakthrough, which will free Saarc of the shackles of this bilateral vendetta. The old knee-jerk formula was repeated ad nauseam: first resolve the disputes — which actually means that India give up Kashmir and yield to Pakistan’s position on Siachen, Wullar Barrage and Sir Creek, etc.

On the Indian side, the more professional opinion was positive, telling India that the responsibility of moving Saarc forward was entirely India’s and that India would console the trading world’s opinion effectively if it took action to remove its non-tariff barriers. An economically successful state set in the middle of South Asia — with 70 per cent of South Asia’s territory, four-fifths of its GDP and three-fourths of its population — was advised by sensible Indian publicists to grasp the moment of thaw by the forelock.

The world has recognised two ways of achieving regional peace and progress. Either resolve the disputes first to facilitate trade, or front-load trade to allow consequent normalisation to resolve the disputes. It is shocking that most retired Pakistani diplomats, including an ex-foreign minister, kept focusing on the first option by expressing doubt about India’s intent to resolve disputes. They should have acknowledged that the first approach of front-loading disputes had not paid off and had retarded the progress of Saarc. For most TV anchors spreading gloom, the default position in South Asia is war which cannot be disturbed.

First of all, if Saarc is late in blooming, one must see it in perspective. It always takes long. And it takes fruitless conflict in the shape of wars to persuade the states to shift to trade. Saarc, founded in 1985, may still be doing better than Asean, which was set up in 1967 and plans to announce a ‘common market’ in 2015. South Asia has to move to its pledged Free Trade Area (Safta) to realise its potential of peace and prosperity.

Published in The Express Tribune, November 12th,  2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/290246-saarcafp-1321034289/290246-saarcafp-1321034289.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Tribune Take: India, Pakistan and the 'trust deficit'</title>
			<link>https://tribune.com.pk/story/290360/tribune-take-india-pakistan-and-the-trust-deficit</link>
			<comments>https://tribune.com.pk/story/290360/tribune-take-india-pakistan-and-the-trust-deficit#comments</comments>
			<pubDate>Fri, 11 Nov 11 16:41:02 +0500</pubDate>
			<dc:creator>
				<![CDATA[mahawish.rezvi]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=290360</guid>
			<description>
				<![CDATA[India and Pakistan are back at the negotiating table.]]>
			</description>
			<content:encoded>
				<![CDATA[In today’s episode of the Tribune Take we take a look at the latest statements from both India and Pakistan at the end of the SAARC summit. 

Robin Fernandez, Foreign Editor The Express Tribune, breaks down what the "reduction in trust deficit" statements mean. He says that it is after a long time that normalisation of relations is being seen between the two neighbours.

Fernandez says although no one can predict where talks could lead, but at least the two countries are willing to talk, after relations hit a low point back in November 2008.

Watch today’s episode here, or click the video thumbnail in the right hand column.

The Tribune Take daily news web show will appear on the tribune.com.pk home page.

The Take will feature in-depth interviews and analysis with editors and reporters who are covering the major stories, exploring front page events and major ledes. The news analysis covers the way The Express Tribune examines a story, how we cover it and why.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/290360-PakIndiaflag_play_take-1321028936/290360-PakIndiaflag_play_take-1321028936.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>The post-MFN scenario</title>
			<link>https://tribune.com.pk/story/289708/the-post-mfn-scenario</link>
			<comments>https://tribune.com.pk/story/289708/the-post-mfn-scenario#comments</comments>
			<pubDate>Thu, 10 Nov 11 17:28:51 +0500</pubDate>
			<dc:creator>
				<![CDATA[zubair.faisal.abbasi]]>
			</dc:creator>
			<category><![CDATA[Opinion]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=289708</guid>
			<description>
				<![CDATA[Pakistan, India need to focus and facilitate upgrades of manufacturing fortunes along with modernising agribusiness.]]>
			</description>
			<content:encoded>
				<![CDATA[It does matter whether you export potato chips or computer chips — this phrase of economic wisdom seems more relevant now that traders and economists are rejoicing over the decision of the cabinet to grant Most Favoured Nation (MFN) status to India. The optimism related to trade openness has many reasons, such as the possibility of enormous increase in bilateral trade from the existing two to three billion dollars. The other reasons sprout from possibilities of peace in the region alongside reduction in economic inefficiencies.

Borrowing words from CK Prahalad, both countries are possibly entering into zones of opportunities while departing from zones of comfort. The zones of opportunities are the locales where potentials of rapid and equitable economic development are either realised or forgotten. A major indicator of such realisation lies in unleashing potentials of the productive sectors of both economies as well as creating more and better jobs. The story is not all about tariffs, restrictions and regulations. It is also about the organisation of production and human capital.

In fact, this is where economic capabilities matter and analysis must go deeper than ‘shallow integration’ models of trade flows that are based more on tariff reduction. The ‘deep integration’ models which rope in production networks and value chains help explore enormous opportunities and perhaps are more relevant to bringing peace in the South Asian region. The model helps carve out space for inter-sectoral articulation in economic activity more than just trade or business development.

Practical pathways run across the ideas of developing industrial clusters and facilitating technology transfers to operationalise strategic industrial and trade policies, pushing possibilities of production beyond the existing resource endowments. This is the way in which car manufacturing in Chennai and Pune can source components from Lahore and Karachi and some firms can collaborate to jointly conduct research and development in aviation machinery. This is where designers in Pakistan can source shoes from the Agra footwear cluster. Multiple sectoral articulations can make sure that value additions in textile and garments sectors are not stopped at Karachi and Lahore and enter Ludhiana as well. Perhaps the key lies in using manufacturing as the key driver for product-process innovations to make both economies diverse and complex.

Nothing can emphasise this point more than a recent report “The Atlas of Economic Complexity — Mapping Paths to Prosperity”. The report argues that at the heart of complexity and diversity in economy is knowledge: “Ultimately, what countries make reveals what they know”. This is where Pakistan and India need to focus and facilitate upgrades of manufacturing fortunes along with modernising agribusiness. An important lesson is: what makes economies grow out of potato chips to computer chips is primarily the ability to handle complex techniques of production, management and marketing.

At the same time, Pakistani firms need to understand the internal dynamics of Indian capitalism. The Economist projects in recent reports that a major part of the Indian economy still revolves around families who run major industrial houses and influence policies. A possible way of collaborations might be reactivating the ‘industrial’ components of the chambers of commerce and industry to organise joint manufacturing competitiveness councils. Within Pakistan, the state and the private sector need to improve their diagnostic and strategic governance capabilities. We must remember that shallow integration can be blocked again but deeper integration is more resilient.

Published in The Express Tribune, November 11th,  2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/289708-ZubairFaisalAbbasiNew-1320933754/289708-ZubairFaisalAbbasiNew-1320933754.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>Setting the tone</title>
			<link>https://tribune.com.pk/story/289705/setting-the-tone</link>
			<comments>https://tribune.com.pk/story/289705/setting-the-tone#comments</comments>
			<pubDate>Thu, 10 Nov 11 16:37:20 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=289705</guid>
			<description>
				<![CDATA[While no significant agreements were reached between Gilani, Singh, decision to further friendship is important.]]>
			</description>
			<content:encoded>
				<![CDATA[Perhaps the mood was set by the setting; perhaps it was established by the tone of statements and discussions held over the past few months — most notably since March this year, when the prime ministers of Pakistan and India met at a cricket match. But certainly, the handshake between Prime Minister Yousaf Raza Gilani and his counterpart Manmohan Singh at the picturesque setting of Addu City on an atoll in the southern Maldives was a pleasant one. There appeared to be genuine warmth in the gesture and the discussion that took place between the two heads of government on the sidelines of the 17th Saarc regional conference appears to have gone well too. Even though no significant decisions with far-reaching effect were reached, the agreement to move ahead along the road to greater friendship is, in itself, an immensely important one.

This is especially relevant given the history between the two countries. Since the events of November 2008 in Mumbai, relations have been strained. It is only now that some semblance of normalcy is returning, the terse words of the past beginning to disappear from speeches. The decision by the Pakistan cabinet to grant India Most Favoured Nation status marked a step in this direction. And Gilani and Singh have indicated they both intend to continue to walk along the same road, stride in stride, reaching a goal of greater harmony and better understanding.

This is crucial to peace in the region and to an end to the militancy which remains, for now, one of the biggest burdens we bear on our shoulders. Militancy cannot end until there is dialogue with India and eventually some effort to resolve the Kashmir question. This, of course, will take time, but closer relations can only help the people of both countries. We must therefore be grateful that the sea breeze in the Maldives has blown in such good news with the leaders of both nations making it quite clear they wish to make a new beginning and allow the past to drift away as tides take a turn.

Published in The Express Tribune, November 11th,  2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/289705-gilanimanmoha_1735627004/289705-gilanimanmoha_1735627004.jpg" class="featured_image"/>
            </image>
			</item><item>
			<title>SAARC summit: PMs pledge ‘new chapter’ in ties</title>
			<link>https://tribune.com.pk/story/289627/saarc-summit-gilani-singh-eye-future-progress-at-talks</link>
			<comments>https://tribune.com.pk/story/289627/saarc-summit-gilani-singh-eye-future-progress-at-talks#comments</comments>
			<pubDate>Thu, 10 Nov 11 07:07:23 +0500</pubDate>
			<dc:creator>
				<![CDATA[kamran.yousaf]]>
			</dc:creator>
			<category><![CDATA[World]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=289627</guid>
			<description>
				<![CDATA[Say more needs to be done in ‘next round of talks’.]]>
			</description>
			<content:encoded>
				<![CDATA[The prime ministers of Pakistan and India pledged on Thursday to write a ‘new chapter’ in their otherwise fragile relationship on the margins of the summit of the South Asian Association for Regional Cooperation (SAARC).

Prime Minister Yousaf Raza Gilani and his Indian counterpart Dr Manmohan Singh first held delegation-level talks for about half an hour, followed by a one-on-one meeting at the picturesque Shangri-La resort hotel on Villingili Island where an overnight stay can cost up to $2,000.

Appearing briefly before the media, both Gilani and Singh appeared positive, but added that they hoped that the next round of talks between the two nuclear-armed neighbours would be more “productive and constructive”.

The emphasis was on burying the past, looking ahead and working towards a resolution of lingering tensions between the two countries.

“We have discussed all core issues including Kashmir. We hope the next round will be more constructive, more positive, and will open a new chapter in the history of both the countries,” the premier told reporters.

Endorsing his view, the Indian prime minister remarked, “I always regard Gilani as a man of peace and every time I meet him my belief is further strengthened”.

‘Moving in the right direction’

Singh said the talks between the two countries had produced positive results since the resumption of the peace process earlier this year. However, he added, more needs to be done to overcome issues that divide the two neighbours.

At the same time, the Indian prime minister also emphasised the mutual benefits of working together, saying, “We wasted lot of time in the past in acrimonious debates”. Gilani also struck a reconciliatory note by saying the peace process between the two countries was moving in the right direction.

Briefing media after the talks, Indian Foreign Secre­tary Ranjan Mathai said Manmohan Singh said that the period of “accusations and counter-accusations was behind us,” and stressed on key initiatives that emerged from the talks that included the revival of the joint commission and the signing of a visa agreement.

Boosting trade

Building on positive momentum generated by Pakistan granting India Most Favoured Nation status in principle, Mathai said the two countries are now planning to move towards a preferential trade agreement.

The two sides also decided to fast-track implementation of cross-border trade and confidence-building measures finalised in July. Commerce secretaries from both countries will meet on November 14 in New Delhi. This will be followed by talks between home secretaries in December that will focus on terror and security-related issues.

SAARC leaders speak out

After the meeting, the leaders attended the opening session of the SAARC summit, where their host, Maldivian President Mohamed Nasheed, hailed their dialogue.

“These developments are extremely welcome,” he said. “I hope this summit will be enthused with optimism.”

In his keynote address at the newly built convention centre for the SAARC summit, Gilani said that South Asia had the potential to become a global economic superpower. “The cultural affinity among our peoples is a huge asset,” the premier remarked. He underlined the need for developing technology and alternative energy resources, adding that economic development in the region was closely linked to the availability of energy at affordable price.

Singh, who also addressed the summit, announced new measures to open his country’s markets for the least developed members of the association. He said his government had decided to reduce the number of items on the sensitive list from 480 to 25.

Afghan President Hamid Karzai also spoke, using the opportunity to allay Pakistan’s concerns about his country’s recent strategic partnership pact with India. “We are also looking for a long term partnership with the United States,” he added. “But let me assure you that these agreements are not aimed at any of our neighbours,” Karzai said.

(Read: Setting the tone)

WITH ADDITIONAL INPUT FROM APP

Published in The Express Tribune, November 11th, 2011.]]>
			</content:encoded>
			<image>
				    <img src="https://i.tribune.com.pk/media/images/289627-Gilaniphotoreuters-1320967606/289627-Gilaniphotoreuters-1320967606.jpg" class="featured_image"/>
            </image>
			</item>	</channel>
                </rss>
