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                        <title>The Express Tribune</title>
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                        <description>The Express Tribune keeps you up to date with all the latest happenings from Pakistan and across the world!</description>
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			<title>Trade with India: Given ‘right price’, Pakistan ready to import Indian oil</title>
			<link>https://tribune.com.pk/story/452643/trade-with-india-given-%e2%80%98right-price%e2%80%99-pakistan-ready-to-import-indian-oil</link>
			<comments>https://tribune.com.pk/story/452643/trade-with-india-given-%e2%80%98right-price%e2%80%99-pakistan-ready-to-import-indian-oil#comments</comments>
			<pubDate>Wed, 17 Oct 12 05:58:54 +0500</pubDate>
			<dc:creator>
				<![CDATA[Aditi Phadnis]]>
			</dc:creator>
			<category><![CDATA[Business]]></category><category><![CDATA[World]]></category>
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			<description>
				<![CDATA[Countries plan to set up a 200km pipeline from Bathinda to Lahore for trade.]]>
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				<![CDATA[In what could be an important Confidence Building Measure (CBM) between the two countries, Pakistan is not averse to importing petroleum products such as diesel and petrol from India if it gets “the right price was offered”, Petroleum Minister Asim Hussain said on Tuesday while on a visit to the Indian capital.


“A team from HPCL (Hindustan Petroleum Corporation Ltd) will come to Pakistan very soon to discuss prices (for exporting fuels),” Hussain told reporters on the sidelines of Petrotech 2012. “If right prices are given, we have no problems importing.”

Trade ties between the two nations have shown signs of a thaw recently. Early this year, Pakistan notified its negative list for India, which means barring 1,209 items, New Delhi can now export all products to the neighbouring country. The negative list contains products such automobiles and textiles.

Pakistan also agreed in-principle to grant India ‘Most Favoured Nation’ status over 15 years after it was given the same status by India.

In March this year, Pakistan’s then petroleum and natural resources secretary Muhammad Ejaz Chaudhry had discussed with his Indian counterpart G C Chaturvedi the possibility of Pakistan importing petroleum fuels from India.

Hussain said on Tuesday that if prices can be agreed upon, Pakistan can import petroleum fuels from India both through pipelines and sea routes.

India and Pakistan plan to set up a 200 kilometre pipeline from Bathinda in Indian Punjab to Lahore to trade petroleum products. India has surplus refining capacity, and is a major exporter of oil products while Pakistan meets most of its needs through imports from West Asian countries. Apart from HPCL, IndianOil will also benefit as the company has an oil storage depot in Bathinda, and a 12 million tonne refinery in Panipat, Haryana.

The minister also said on Tuesday that the country will offer 60 oil and gas exploration blocks in the next two months, and will discuss with his Indian counterpart possibilities of offering some of the blocks to Indian companies on a bilateral basis.


Published in The Express Tribune, October 17th, 2012.]]>
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			<title>Pakistan ready to import fuel from India if ‘price right’</title>
			<link>https://tribune.com.pk/story/452476/pakistan-ready-to-import-fuel-from-india-if-%e2%80%98price-right%e2%80%99</link>
			<comments>https://tribune.com.pk/story/452476/pakistan-ready-to-import-fuel-from-india-if-%e2%80%98price-right%e2%80%99#comments</comments>
			<pubDate>Tue, 16 Oct 12 17:33:52 +0500</pubDate>
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				<![CDATA[afp]]>
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			<category><![CDATA[Pakistan]]></category>
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			<description>
				<![CDATA[Petroleum Minister Asim Hussain says Pakistan has no problems in importing diesel, jet fuel from India.]]>
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				<![CDATA[Pakistan’s petroleum minister on Tuesday said the country was willing to import diesel and jet fuel from rival India if the price is "right".

The statement by visiting Pakistan petroleum minister, Asim Hussain, was the latest sign of warming ties between the nuclear-armed neighbours who have fought three wars since independence from Britain in 1947.

"If the right prices are given, we have no problems importing (diesel and jet fuel)," Hussain said on the sidelines of a petrochemical conference in the Indian capital, according to the Press Trust of India news agency.

India and Pakistan have been channelling their peace efforts into "trade diplomacy" in a bid to build enough trust to tackle thornier issues that divide them such as the disputed Himalayan territory of Kashmir.

While Pakistan has removed fuel imports from its list of goods that were banned from being imported from India, it allows import of diesel and jet fuel only by ship.

India, which has refineries across the border, is keen to take the road route to reach fuel-short Pakistan.

"I think a way could be found (to import via land) as import of (fuel) products is not banned," Hussain said, adding that a team from India's state-run Hindustan Petroleum Corp would soon visit Pakistan to discuss prices.

India in August lifted a ban on foreign investment from Pakistan except in defence, space and atomic energy in a step designed to build goodwill amid the renewed push for a peace settlement.

Pakistan has pledged to grant India "Most Favoured Nation (MFN)" status by year end, meaning Indian exports will be treated the same as those from other nations. India granted Pakistan MFN status in the mid-1990s.

Official bilateral trade is just $2.7 billion and heavily tilted in New Delhi's favour, according to the most recent figures, but unofficial trade routed through third countries is estimated at up to $10 billion.

India warily resumed a full peace dialogue with Pakistan early last year after suspending it following the 2008 attack by gunmen on Mumbai that killed 166 people.]]>
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			<title>Fast-track business: Fresh move for speedier India-Pakistan trade</title>
			<link>https://tribune.com.pk/story/451661/fast-track-business-fresh-move-for-speedier-india-pakistan-trade</link>
			<comments>https://tribune.com.pk/story/451661/fast-track-business-fresh-move-for-speedier-india-pakistan-trade#comments</comments>
			<pubDate>Mon, 15 Oct 12 06:28:49 +0500</pubDate>
			<dc:creator>
				<![CDATA[asad.kharal]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Customs to start performing round-the-clock shifts at Wagah from today.]]>
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				<![CDATA[Pakistani authorities have decided to enhance the existing capacity of resources and manpower to ensure fast-tracked trade between Pakistan and India.


Thereby, customs officials at the Wagah border are instructed to perform their duties round-the-clock in three shifts, starting from today, The Express Tribune has learnt.

The decision was taken at an inter-departmental meeting held at the Wagah border.

Joint Director of the Anti Narcotics Force (ANF) Colonel Amjad, Commanding Officer National Logistic Cell (NLC) Colonel Ishtiaq Wayen, Deputy Collector Customs Tauqir Dar and other officials participated in the meeting, an attendee told The Express Tribune.

Due to increasing trade between the two nations, customs authorities have requested NLC to install one more scanner and a weighbridge at the Wagah border.

Presently, just one scanner and a weighbridge are available at the Wagah border due to which an average of only 350 trucks are cleared on a daily basis, which includes 200 trucks coming from India and about 150 trucks heading towards the neighbouring country.

A member who attended the meeting said that 42 staff members from the Customs Department will also be deployed for scanning and examination duties from today onwards.

Similarly, staff members of the NLC and ANF have also been increased at the Wagah border to ensure the speedy process of screening and examination of the consignments to guarantee that no consignment enters or exits with contraband, explosives or other objectionable goods, the participant of the meeting further stated.

Sources explained that hundreds of trucks laden with tomatoes, onions, garlic and other food items reached Pakistan daily from India and almost the same numbers of trucks carrying salt, soda, stones, dry dates, dry fruits and gypsum, cement and other goods headed towards the Indian territories from the Wagah border.

Pakistani and Indian authorities have also considered holding joint screening and examination of the consignments to save time and facilitate trade, sources familiar with the matter further revealed.

Afghan traders

Additionally, as a transit route, trucks from Afghanistan carrying dry and fresh fruits also reach Wagah and head towards India. These trucks were checked twice in Pakistan, first at the Chaman border and then at Wagah border, as a result of which Afghan traders face the problem of unloading their trucks twice.

The Afghan exporters along with their government have taken up the matter with the Pakistani government for allowing the trucks to directly reach the Wagah border, to avoid hold-ups.

Edited by Zehra Husain

Published in The Express Tribune, October 15th, 2012. ]]>
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			<title>Trading for trust</title>
			<link>https://tribune.com.pk/story/439109/trading-for-trust</link>
			<comments>https://tribune.com.pk/story/439109/trading-for-trust#comments</comments>
			<pubDate>Sun, 23 Sep 12 06:33:31 +0500</pubDate>
			<dc:creator>
				<![CDATA[farooq.tirmizi]]>
			</dc:creator>
			<category><![CDATA[Magazine]]></category>
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				<![CDATA[In first few years after independence, 60% of Pakistan’s total trade was with India, today it is less than 3%.]]>
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				<![CDATA[It is one of the most ridiculous sights in the world: at the Wagah border crossing that links Pakistan to India, several trucks stand on the Pakistani side, with labourers unloading 50-kilogramme sacks of cement that they then carry to the Indian side of the border and load onto very similar trucks. Why the Pakistani trucks do not simply cross over into India themselves is part of the story of the insanity — and potential — of trade between India and Pakistan.

Pakistan and India share a dubious distinction: the border between the two countries has the lowest level of trade between any two countries of similar size and similar geographic and cultural proximity. This is even more disturbing when you consider the fact that in the first few years after independence, 60% of Pakistan’s total trade was with India, compared to the less than 3% it is today.

Yet in recent months, there have been groundbreaking overtures between the two countries: Pakistan finally granted most-favoured nation status to India. That makes it sound like we just declared India to be our best buddy (which is why the Difa-e-Pakistan Council crowd freaked out), but what it really just means is that we promise not to discriminate against India as compared to our other trading partners.

So what does this mean for Pakistan? Will it affect the average Pakistani? As it turns out, the answer is a resounding yes. Everyone, from the chai-wala and the thela-wala to the textile exporter and the industrial tycoon, will see their lives change, and mostly for the better.

For starters, those labourers at Wagah will hopefully get a break soon. The reason they are needed is because India only allows Pakistani cement to cross the border on a train, not on trucks — a distinction that makes no sense to virtually anyone who wants to buy and sell the commodity. As the two countries negotiate a more liberal trade regime, such rules are likely to go away, making it easier for both sides to trade.

Last year, Pakistan exported over 750,000 tonnes of cement to India, a number that can easily go higher. But the areas of cooperation between the countries go far beyond just cement.

&nbsp;

Cheaper food

The most important consequence for the average Pakistani consumer is likely to be cheaper food, since they will have access to vegetables and grains from both sides of the border. With its ‘Green Revolution’, India has managed to grow fruits and vegetables in such massive quantities that products grown in Indian Punjab will be cheaper in the Pakistani market than the local product.

And it is not just that they have more farmland. The Indians are more efficient too. In wheat, for instance, the average Indian farm yields 2.1 tonnes per acre, 50% higher than Pakistan’s 1.4 tonnes per acre, according to Ibrahim Mughal, chairman of the Pakistan Agri Forum, a farmers’ group. Palak Paneer will thus be cheaper, even if the Palak isn’t Pakistani.

One area of cooperation where Pakistanis are also likely to benefit from open trade is tea. Pakistan is one of the largest consumers of tea in the world, but currently imports almost 70% of its total consumption from Kenya — nearly 2,700 miles away — even though the world’s largest producer is right next door, from whom we only buy 15% of our tea. As trade with India liberalises over time, that number is expected to grow.

Not surprisingly, Pakistani farmers are afraid of the competition. “If open trade with India is allowed, Pakistan’s agriculture sector will start dying,” says Mughal.

Yet the barter trade between the two countries — which is valued at Rs10 million per week — offers a preview of each country’s comparative advantage and suggests otherwise. India sells potatoes, onions, bananas, chillies, cardamoms, corianders, and tamarind while Pakistan sells dry fruits, herbs and oranges, along with Peshawari sandals and embroidered items.

“Of all fruits and vegetables, Pakistan’s only superior product is the orange. It is the only Pakistani fruit that can build a brand on the other side of the border,” says Mughal.

Another expert, however, disagreed and suggested that Pakistani mangoes might also find a niche in the Indian market. “India’s mango season lasts from March to June while Pakistan’s begins in June and ends in October,” said Tariq Puri, the former head of the Trade Development Authority of Pakistan. An extended mango season alone is enough reason to support free trade between the two countries.

&nbsp;

Lawn fever: coming soon to India

In April this year, more than 600 Pakistani consumer goods brands held an exhibition in Delhi, called Lifestyle Pakistan. Manufacturing houses such as Gul Ahmed, Ahad Home Signature, Chen One, Zamana, Bareeze and Hub Leather were a few of the big names displaying their products. And if you thought the ladies in Lahore go nuts over designer lawn, you should have seen the crowd at Delhi.

Every single lawn exhibitor reported strong sales, according to Daily Express reporter Kashif Hussain who was covering the event. Al Karam Textiles ran out of their stock in the first two days of the four-day exhibition, one of the many exhibitors who grossly underestimated the demand in India for their product.

“We are in love with Pakistani lawn,” said one Indian buyer, who was holding bags that appeared to weigh more than the children who stood beside her with a disgruntled look on their faces. “Gul Ahmed and Al Karam are a few of the products that already make their way to India through Dubai.”

Pakistani lawn sells at nearly twice the price in India than it does in Pakistan, one of the reasons that Shobhaa De made it a point to go Lawn shopping while attending the Karachi Literature Festival this February. While at least part of that higher price tag is justified by transportation costs, most of it just translates into higher margins for Pakistani manufacturers. India’s fashion industry does not appear to focus nearly as much on lawn, leaving an open opportunity for Pakistani companies.

“We have offers from retail stores in India for our product,” said Al Karam Textiles Director Abid Umer. Al Karam is also open to the idea of opening up its own branches, which it now can since New Delhi legalised investment by Pakistani companies into India in August.

Al Karam is not the only one. Other textile giants are all set to start joint ventures and open branches across the border. Lahore-based company Sefam is also keen to roll out its popular brand Bareeze in India. “We want to be [in India] like all other international brands. We are scouting for franchise partners who will help us establish the brand in the Indian market,” Sefam International business head Zain Aziz told Indian newspaper Business Line.

Planning for the Indian market appears to be easy for Pakistani companies. “Delhi and Lahore have similar taste while Karachi and Mumbai [consumers] are on the same lines,” said Umer.

&nbsp;

Automobiles: two-way traffic

Perhaps the most exciting avenue of cooperation between the two countries is automobile manufacturing, where both sides have different comparative advantages and the most likely scenario is an integrated supply chain where companies on both sides of the border use suppliers in either country. This would make the auto sector in South Asia similar to the one in North America (USA, Canada and Mexico), creating a permanent constituency for peace.

One automobile company that is particularly excited about the possibility of liberalised trade with India is Atlas Honda. The company is on track to produce 650,000 motorcycles in 2012, but is already investing more than $50 million to expand its capacity, which it hopes to eventually take to two million units, largely on the back of anticipated demand from India. That expansion is expected to result in tens of thousands of jobs being created in Pakistan.

The company’s major advantage seems to be the 70 cc motorcycle. Atlas Honda is the only partner of Honda that manufactures the CD-70 model, a highly popular one in places like Afghanistan, particularly due to pricing. Atlas’ Indian competitors tend to focus on the 100 cc model.

“The Indian 70 cc motorcycle costs about Rs70,000. Ours is about Rs66,000,” said Raziur Rehman, the company’s general manager for corporate affairs.

In addition, Atlas Honda — along with other car manufacturers — will have the opportunity to import cheaper parts for their products from India, knocking down their prices even further.

And in some cases, Pakistani automobile manufacturers have no choice but to import parts from India. Pak Suzuki has currently halted production of the Alto, one of its best selling products, after the government enacted Euro II emissions standards. Pak Suzuki Motor Company’s Japanese parent company moved the production of Euro II compliant parts for the Suzuki Alto (one of the best selling smaller cars in Pakistan) from Japan to India. Owing to current legal restrictions on trade between India and Pakistan, Pak Suzuki was forced to discontinue making the Alto and is desperate for trade between the two countries to open up so that it can sell its signature vehicle again.

&nbsp;

Powering Pakistan with Indian energy

India has offered Pakistan all the petroleum products supply it needs and also 5,000MW of electricity to help it end the energy crunch that has resulted in hundreds of factories shutting down, thousands of workers being laid off and recurring power riots. The offers are tempting but Pakistan is wary of creating an energy dependence on the country it has fought three wars with over the last six decades.

Thus far, Pakistan has decided to import up to 500 megawatts — only 10% of the total offered — of electricity from India with the World Bank agreeing to fund construction of the required infrastructure.

Bathinda Refinery, located at the border and just 175km away from Lahore, has offered to move surplus diesel from India to Pakistan. The $4 billion project is a joint venture of state-owned Hindustan Petroleum Corporation Ltd and Mittal Energy, owned by steel magnate Lakshmi Mittal.

Pakistan also needs furnace oil and diesel, which the Indian refinery could provide. But observers in the industry are not optimistic. “Nothing is happening anytime soon,” said Sohail Khattak, CEO of the Attock Group, the only integrated energy conglomerate in Pakistan. “There have been a lot of meetings and many more are expected before any actual trade happens.”

 

Time to open up

Trade liberalisation between India and Pakistan needs to happen. Trade between the two countries is currently only $2.7 billion, and tilted heavily towards India. By liberalising more on its end, Pakistan strengthens its hand in negotiating with New Delhi to open up the much larger Indian market, allowing Pakistani companies to grow and millions of Pakistani families the opportunity to lead a better life through well-paying jobs in export-oriented sectors.

Most experts agree that Pakistan-India trade should be at least $16 billion, if not higher. About $10 billion of that is estimated to be the amount of trade between the two countries that already takes place, but through other countries, such as the UAE or Singapore.

Both sides have made some progress. Pakistan granted India MFN status and India allowed investment from Pakistani companies, allowing them to set up subsidiaries to begin selling their products. But a lot more needs to happen.

The more trade there is between the two countries, the more trust there will be as well. For every Pakistani who works in a company that sells to India, there will be at least a dozen who will no longer view India as a national security threat. And the more Indian consumers who buy Pakistani products, the fewer there will be who view Ajmal Kasab as Pakistan’s primary export. All of this will make it harder for the two countries to go to war or fall prey to their respective jingoists. Now isn’t that something to aspire to?

Published in The Express Tribune, Sunday Magazine, September 23rd, 2012.

Like Express Tribune Magazine on Facebook and follow at @ETribuneMag]]>
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			<title>Secretary-level talks: India, Pakistan discuss resuming ‘capital’ flights</title>
			<link>https://tribune.com.pk/story/440132/secretary-level-talks-india-pakistan-discuss-resuming-%e2%80%98capital%e2%80%99-flights</link>
			<comments>https://tribune.com.pk/story/440132/secretary-level-talks-india-pakistan-discuss-resuming-%e2%80%98capital%e2%80%99-flights#comments</comments>
			<pubDate>Fri, 21 Sep 12 05:37:20 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shahbaz Rana]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
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			<description>
				<![CDATA[Arch-rivals commence two-day trade talks; discuss cooperation on market access, tariffs.]]>
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				<![CDATA[Pakistan and India are discussing a proposal that seeks to restore direct flights between Islamabad and New Delhi, in a latest move indicating improved relations between the nuclear-armed neighbours.

The idea was discussed during the first day of two-day talks, held on Thursday at the commerce secretary level. Both sides were also exploring the possibility of launching container service between Lahore-Amritsar and Lahore-Ludhiana aimed at facilitating fast-track goods’ movement across the borders.

The negotiations are part of the peace process, which has picked up momentum in recent months. The latest trade talks seek to iron out the remaining outstanding issues, which may delay phasing out of negative-list containing 1,209 non-importable items from India.

Pakistan has in principle decided to abolish the list by end of this year but seeks greater access to Indian markets for providing level-playing field to its exporters.

Head of the Indian delegation, Commerce Secretary S R Rao, also stressed the “need to focus on grey areas (for promotion of trade) rather than in the sectors where the business community on both sides of the border is slightly uneasy and sensitive”.

Rao’s opening statement hints at the biggest thorny issue — the possibility of abolishing Pakistan-specific sensitive list maintained under the South Asia Free Trade Agreement and banning trade in products where Islamabad enjoys competitive advantage.

The Indian delegation comprised officials of the Bank of India, External Affairs, and Power and Heavy Electricals, Gas Authority of India, Ministry of Railways, Civil Aviation and Quality Control Departments.

Rao said the 18-member delegation has a mandate from the Indian government to find a cooperative approach and discover commonalities. He said the way the world trade is moving is the reason why both countries are sitting across the table to normalise trade relations. He said despite multilateral trade arrangements, 60% of the total trade is still bilateral.

Pakistan’s Commerce Secretary Munir Qureshi urged India to resolve the issues of tariffs and non-tariff barriers and deficiency of infrastructure which was hampering the movement of goods. He said the business community was pushing for the resolution of all the outstanding issues. Qureshi stressed the need to provide a level-playing field to local businessmen and urged that the remaining issues should also be addressed in the same spirit of “give and take”.

Both the sides also decided to train exporters in their respective countries so they should be more familiar with quality standards — minimising problems at the time of export. In a bid to lower the cost of conducting business, both sides also reviewed the possibility to sign avoidance of double taxation treaty.

The parties gave final touches to the draft of the three agreements that will be signed today (Friday). Both the sides decided that the rules and regulations to govern these agreements will be framed within three months.

India and Pakistan also explored the possibilities of cooperation in the areas of telecommunication and courier services. They discussed promoting small and medium enterprises aimed at extending benefits to be yielded due to the normalisation of process at all possible levels.

Published in The Express Tribune, September 21st, 2012.]]>
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			<title>Cross-border investment: JI sees trap in Indian opportunity</title>
			<link>https://tribune.com.pk/story/416699/cross-border-investment-ji-sees-trap-in-indian-opportunity</link>
			<comments>https://tribune.com.pk/story/416699/cross-border-investment-ji-sees-trap-in-indian-opportunity#comments</comments>
			<pubDate>Thu, 02 Aug 12 21:45:51 +0500</pubDate>
			<dc:creator>
				<![CDATA[our.correspondent]]>
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			<category><![CDATA[Punjab]]></category>
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				<![CDATA[Munawar, Baloch urge Pakistanis to refuse offer of ‘enemy number one’.]]>
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				<![CDATA[Jamaat-i-Islami (JI) has called India’s decision to allow Pakistanis to invest in the country “a trap.”


In a statement issued on Thursday, JI Amir Munawar Hasan said the permission to allow Pakistanis to invest in India was part of a plan to destablise Pakistan. He said businessmen must not fall in the “trap set by Pakistan’s enemy number one.”

He said India has built 62 dams on rivers flowing into Pakistan to turn it into a desert. “They want to destroy our industry and agriculture to force us to import everything from India,” he said.

He said it was part of New Delhi’s plot to become the “regional policeman” with US backing.

He said the government of Pakistan had been helping India in its designs.

He said the current energy crisis had been created to compel local capitalists to shift their capital abroad. “Almost 40 per cent of the country’s industries have already shifted to Bangladesh. The rest will be tempted by India’s offer,” he said.

He said Pakistan’s hands were being tied by opening up trade with India. He said each step had compromised the country’s sovereignty. “The enemy violates our borders every day but neither the armed forces nor the government care,” he said.

In another statement the JI general secretary Liaqat Baloch said the Indian move allow Pakistani investment was a conspiracy. He said India had started by declaring Pakistan the most favoured nation for trade and Islamabad has reciprocated.

“Trade between the two neighbours has resulted in losses for Pakistan and profits for India,” he said.

Baloch said Kashmir, the life line of Pakistan, was still occupied by India. He also said India was sponsoring terrorism in Pakistan, particularly in Balochistan. He said Pakistani capitalists should demonstrate their love for the country by turning down the Indian offer.

Published in The Express Tribune, August 3rd, 2012.]]>
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			<title>Trade diplomacy: Why this should matter to Pakistan</title>
			<link>https://tribune.com.pk/story/416305/trade-diplomacy-why-this-should-matter-to-pakistan</link>
			<comments>https://tribune.com.pk/story/416305/trade-diplomacy-why-this-should-matter-to-pakistan#comments</comments>
			<pubDate>Thu, 02 Aug 12 01:12:25 +0500</pubDate>
			<dc:creator>
				<![CDATA[farooq.tirmizi]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
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			<description>
				<![CDATA[Trade with India was nearly 60% of Pakistan’s total at independence. That figure has dropped to 2.7% in 2011.]]>
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				<![CDATA[Make no mistake: New Delhi’s decision to allow Pakistani individuals and firms to invest in India is far more than just a political gesture. It is a move that has the potential to drastically reshape the Pakistani economy, and mostly for the better.


One might be forgiven for thinking that the move is largely symbolic. After all, Pakistan is not exactly known as a major source of foreign direct investment in any part of the world. Indeed, we are a net recipient country and grateful for every dollar that comes our way. But the move by India nonetheless has important consequences and needs to be understood in its full context.

Put simply, before this law was changed, no Pakistani firm could set up a registered company in India. This may not seem like much, but consider the following example. That Pakistani lawn garments are highly popular in India is by now a well-documented fact. Many commentators have gone on to ask why Pakistani lawn designers and manufacturers do not actively market to Indian consumers. Why, for instance, does Gul Ahmed or Al-Karam or Sana Safinaz not set up retail outlets in Mumbai or Delhi?

The reason they do not is that, in order to have any presence in India, they would first need to register a subsidiary company. However, registering a company requires putting up capital, even if it is for small amounts and does little more than setting up an office or a few shops. In any country other than one’s home country, such an act would technically be classified as “foreign direct investment”, which until now has been illegal for Pakistani firms.

Now that India has legalised foreign direct investment from Pakistan, Gul Ahmed or any other Pakistani company can set up Indian subsidiaries to begin marketing their products to consumers on the other side of the Wagah. Indian companies should really not fear this: Pakistani firms will still likely seek partnerships with their Indian counterparts and create opportunities for commercial collaboration that benefits both sides.

The amounts of capital moving from Pakistan to India will probably not be very big, at least not in the initial decade. But being able to “invest” in India is really a licence to freely to do business in India, or at least as freely as any other foreign investor.

The Indian government, in its announcement, has said that Pakistani companies and individuals will be able to invest in all sectors except “defence, space and atomic energy”. This, however, is likely a slightly misleading statement since the Indian government has all sorts of restrictions on foreign investment in various sectors and it is unlikely that Pakistani companies will be given more favourable treatment in India than, for example, American ones.

The most famous example of this is the retail sector, where foreign companies are still not allowed to sell more than one brand in their retail outlets. This restriction will not matter to Pakistani textile companies seeking to market lawn in branded shops, but those multi-brand clothing outlets now booming across the country will likely not be able to cross the border.

Nonetheless, once Pakistani companies begin selling more to Indian consumers, the direction of Pakistan’s trade is likely to transform. Remember that trade with India was nearly 60% of Pakistan’s total at independence. That figure has dropped to 2.7% in 2011, a level most economists consider unnaturally low. It needs to rise, and Pakistani firms being able to operate normally in India will tremendously boost that phenomenon.

For those of you who are curious as to whether or not Indians are allowed to invest in Pakistan, they have been allowed to invest in Pakistan – with the ability to repatriate 100% of their capital – for about two decades now, when Pakistan first adopted the principal of not discriminating between foreign firms and local ones (with very few exceptions).

Until now, hardly any have taken it up, but once they see Pakistani firms coming into their own backyards, some might consider jumping the border. And once they discover the relative ease of doing business in this country, they may well come to like it.

Published in The Express Tribune, August 2nd, 2012.]]>
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			<title>Trade diplomacy: India opens doors to Pakistan investment</title>
			<link>https://tribune.com.pk/story/416306/trade-diplomacy-india-opens-doors-to-pakistan-investment</link>
			<comments>https://tribune.com.pk/story/416306/trade-diplomacy-india-opens-doors-to-pakistan-investment#comments</comments>
			<pubDate>Thu, 02 Aug 12 00:39:55 +0500</pubDate>
			<dc:creator>
				<![CDATA[Aditi Phadnis]]>
			</dc:creator>
			<category><![CDATA[World]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=416306</guid>
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				<![CDATA[A ban on investments in defence, space and atomic energy will remain.]]>
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				<![CDATA[India on Wednesday overturned its ban on foreign investment from Pakistan in an unprecedented move amid a series of confidence building measures to build goodwill between the neighbours.


“The government of India has reviewed the policy... and decided to permit a citizen of Pakistan or an entity incorporated in Pakistan to make investments in India, under the government route, in sectors/activities other than defence, space and atomic energy,” said a statement from the Indian commerce ministry.

Earlier, no investment from person or company resident or registered in Pakistan was permitted. The move will allow all sorts of investments from Pakistan without any limit on the quantum to be invested. However, a ban on investments in defence, space and atomic energy will remain and all propositions must come via the Indian government.

“We welcome this decision,” said Pakistan foreign ministry spokesperson Moazzam Khan.

“It will definitely benefit Pakistani investors and industrialists. We hope this decision will be fruitful for the people of both countries.”

The decision will take place with immediate effect and accordingly the Consolidated FDI Policy effective from April 10, 2012 has also been amended.

Bilateral relations between India and Pakistan have scaled new heights since April last year. Trade ties between the two neighbours have seen new initiatives. The decision to accept foreign direct investment from Pakistan was taken in April when the trade ministers of the South Asian rivals met in New Delhi.

The improved relations between the rivals stem from Pakistan’s decision to grant India “Most Favoured Nation (MFN)” status by year end, meaning Indian exports will be treated the same as those from other nations.

MFN status will mean India can export 7,500 tariff lines to Pakistan, up from around 2,000 at present, and the countries aim to lift bilateral trade to $6 billion within three years, officials have said. Official bilateral trade is just $2.7 billion and heavily tilted in New Delhi’s favour, according to most recent figures, but unofficial trade routed through third countries is estimated at up to $10 billion.

The neighbours also discussed the possibility of allowing banks from both countries to open cross-border branches. State Bank of Pakistan and Reserve Bank of India had recently met and finalised a deal to open up banking outlets in each other’s country which would reduce the transaction cost of exporters. The final nod by India’s Department of Economic Affairs and Department of Industrial Policy and Promotion (DIPP) and the finance ministry of Pakistan is now being awaited.

India has also offered to ease visa curbs on business travel and for Pakistani businessmen. The decision is yet to receive formal approval from Pakistan. In further progress, the newly-built integrated check post (ICP) at Attari-Wagah border was opened to boost trade.

(WITH ADDITIONAL INPUT FROM AFP)

Published in The Express Tribune, August 2nd, 2012.]]>
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			<title>Better Indo-Pak trade ties remain as elusive as ever</title>
			<link>https://tribune.com.pk/story/413578/better-indo-pak-trade-ties-remain-as-elusive-as-ever</link>
			<comments>https://tribune.com.pk/story/413578/better-indo-pak-trade-ties-remain-as-elusive-as-ever#comments</comments>
			<pubDate>Thu, 26 Jul 12 21:11:07 +0500</pubDate>
			<dc:creator>
				<![CDATA[Shahbaz Rana]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=413578</guid>
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				<![CDATA[As New Delhi drags its feet, Foreign Office places moratorium on further efforts.]]>
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				<![CDATA[Efforts for normalisation of trade between Pakistan have been dealt a serious blow, partly due to New Delhi’s reluctance in reciprocating moves made by Pakistan to ease trade restrictions. The Pakistani Foreign Office has now curbed efforts, which envisioned bringing the embattled neighbours closer through stronger trade ties, saying that slow progress in dialogues on other disputed issues necessitates toning down rapprochement efforts.


“Prospects to abolish the negative list by December this year have considerably dimmed,” sources in the Ministry of Commerce told The Express Tribune.

The Federal Cabinet had given in-principle approval for the abolishment of the negative list, which still contains 1,209 non-tradable items, by December 31; in line with granting the Most Favoured Nation status to Pakistan’s once arch-rival. It had asked the commerce ministry to negotiate with India, in order to seek more relaxations for Pakistani exporters, before trade ties were completely ‘normalised’. The commerce ministry was to report back to the Cabinet after holding another round of commerce secretary-level talks with India.

Sources told The Express Tribune that commerce secretary-level talks to this end were scheduled tentatively for May this year, but were postponed due to the objections raised by the Foreign Office. The Foreign Office had asked the ministry to “go slow” after no significant progress was achieved on other contentious matters, despite repeated rounds of talks.

Both sides had held multiple discussions to arrive at resolutions to the Sir Creek, Siachen, visa relaxation and counter terrorism issues; but no new ground was broken.

Commerce Secretary Munir Qureshi confirmed to The Express Tribune that the talks were not held in May on the Foreign Office’s diktat.

“Trade talks are not independent from other disputed issues, as they form a part of broader Confidence Building Measures,” Qureshi explained, responding to broader objections to the delay caused by lack of progress on matters unrelated to trade.

Pakistan’s decision, to replace the positive list – which had allowed only 1,956 items to be traded across the border – with a negative list In February this year, had been dubbed a giant leap in bilateral trade relations between the two nations. During the Indian commerce minister’s visit to Pakistan in February, both countries had inked three pacts on harmonisation of customs procedures and resolution of quality control issues.

However, contrary to expectations and assurances given by India, Islamabad says it has not yet received concessions it had earlier hoped for.

Our sources said that despite signing various agreements that aimed to allay Pakistan’s concerns regarding non-tariff barriers, India has not done much to make these treaties effective. The sources said India also did not agree to equal duty slabs on products on both sides of the border – a measure Pakistan believes will boost bilateral trade by providing a level playing field to exporters of both nations. Commerce Secretary Qureshi added that non-tariff barriers were also a major concern for Pakistan.

Qureshi also claimed that India has not yet reduced its sensitive list by 30%. The list contains items that carry high duties slabs, aimed at protecting selective industries in the member states of the South Asian Association of Regional Cooperation.

However, he did offer some hope to proponents of Indo-Pak trade, when he said there were indications that the next round of talks may yet be held in September.

Foreign Office spokesman Moazzam Ali Khan was not available for comments.

Published in The Express Tribune, July 27th, 2012. ]]>
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			<title>Pre-feasibility report: Islamabad asks WB to weigh up power import from India</title>
			<link>https://tribune.com.pk/story/391841/pre-feasibility-report-islamabad-asks-wb-to-weigh-up-power-import-from-india</link>
			<comments>https://tribune.com.pk/story/391841/pre-feasibility-report-islamabad-asks-wb-to-weigh-up-power-import-from-india#comments</comments>
			<pubDate>Mon, 11 Jun 12 03:54:00 +0500</pubDate>
			<dc:creator>
				<![CDATA[qaiser.butt]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=391841</guid>
			<description>
				<![CDATA[Headway largely depends on political willingness.]]>
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				<![CDATA[The World Bank has begun preparing a pre-feasibility report to assess the viability of Pakistan importing power from India under the Pakistan Regional Trade Programme, a senior water ministry official told The Express Tribune.


The World Bank’s initiative comes in light of the request made by Pakistan to provide technical assistance to conduct a pre-feasibility study regarding the import of power and exploring interconnection options between the power systems of both nations.

The study will help Pakistan in identifying issues and important risks of the proposed interconnection and electricity trade. It will be evaluated by a committee of experts from the National Transmission Dispatch Company and the Ministry of Water and Power. The official said negotiations among various stakeholders regarding the possibility of interconnecting power grids are ongoing.

Pakistan had decided in April that it would import up to 500 megawatts of electricity from India with the World Bank agreeing to fund construction of the required infrastructure. “We will import 500MW from India initially. Import can be increased up to 5,000MW if our need so demands,” said the ministry official.

No transmission link currently exists between India and Pakistan. It was decided earlier that the countries will build a 45-kilometre, 220 kilovolt transmission line within six months of signing a formal agreement. The agreement will be valid for five years, after which it can be extended for another five years.

Indian media reported last year that there is general agreement between officials involved in negotiations regarding cross-border trade through high voltage direct current coupling. India is also exporting power to Bangladesh and reports said it was ready to take steps to ensure that both grids operate independently.

However, technical feasibility is not the only problem. The trade is largely dependent on political willingness. Indian newspaper The Hindu quoted an Indian government official as saying: “While India is also facing a domestic power crunch, the move to offer electricity to Pakistan is being seen as part of a broader strategic initiative.”

According to the Indian daily, it was India that wanted to import power from Pakistan more than a decade ago. In 1998-99, India considered a proposal for power imports, but talks were bogged down over issues relating to power tariff and no headway was made.

Published in The Express Tribune, June 11th, 2012.]]>
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			<title>Pakistan, India trade: Timeframe to abolish negative list to be decided soon</title>
			<link>https://tribune.com.pk/story/380504/pakistan-india-trade-timeframe-to-abolish-negative-list-to-be-decided-soon</link>
			<comments>https://tribune.com.pk/story/380504/pakistan-india-trade-timeframe-to-abolish-negative-list-to-be-decided-soon#comments</comments>
			<pubDate>Thu, 17 May 12 22:43:04 +0500</pubDate>
			<dc:creator>
				<![CDATA[our.correspondent]]>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=380504</guid>
			<description>
				<![CDATA[Dates for secretary level talks being finalised for visit of an Indian delegation.]]>
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				<![CDATA[Pakistan and India will hold secretary-level talks to resolve the remaining outstanding issues for taking the trade normalisation process to a logical end, as the outcome of parleys will become the base for determining timeframe to abolish the list of items that cannot be traded.

In a testimony to the National Assembly Standing Committee on Commerce on Thursday, Commerce Secretary Zafar Mahmood said both the countries were finalising dates for the visit of an Indian delegation. The meeting has been arranged to get an update on the trade normalisation process.

He said after the conclusion of the visit the ministry will brief the federal cabinet about the outcome. “The abolition of negative list is subject to a positive outcome in further negotiations with India, as Pakistan is negotiating a relief from non-tariff barriers,” said Mahmood, who is spearheading the process.

Referring to a study ordered by the Indian government to figure out Pakistan-specific non-tariff barriers, Mahmood said according to the Indian report, Indian security agencies carry out surveillance of those who import goods from Pakistan, creating hurdles in the process.

In February this year, Pakistan took a big step towards trade normalisation and replaced a list containing 1,958 tradable items with only 1,209 non-tradable goods. The federal cabinet, in principle, also approved the scrapping of non-tradable list by December this year provided India addresses Pakistan’s concerns.

Mahmood said the cabinet will decide whether to eliminate the list in one go or in phases, depending on the progress in talks. He, however, pointed out that there are signs which indicate that both countries will further strengthen their relations.

The Reserve Bank of India and the State Bank of Pakistan, in a meeting held last month, decided to invite applications for opening bank branches in their respective countries.

Mahmood said Pakistan has turned down an Indian proposal to open bank subsidiaries instead of branches, as local banks are not ready to meet Indian regulations.

In another positive development, Mahmood said home ministries of both countries have been negotiating to ease visa restrictions and they will give good news next week. They were negotiating to remove reporting condition for the visitors, end entry and exit point limitations and introduce multiple-entry visas.

Mahmood said India has requested Pakistan to open Monabao trade route while the Punjab government has sought the opening of Kasur border route for promotion of bilateral trade. He hoped that 11 trade routes, which were working by the 1965 war, will gradually be reopened.

“It is for the first time that there is political consensus on trade liberalisation with India,” said Mahmood. According to an IBA study, trade normalisation will boost Pakistan’s exports to $10 billion in the longer run. Parliament’s Kashmir committee has also supported the process.

Currently, the volume of bilateral trade is $2.3 billion which is in favour of India that exports $2 billion worth of goods to Pakistan.

“The purpose of the meeting is to find evidence to argue for trade liberalisation with India,” said Engineer Khurram Dastgir Khan, the chairperson of the standing committee.

The commerce secretary pointed out that the automobile sector has so far been protected and the government has not allowed import of Indian cars. The cabinet will take a decision on opening of the automobile sector to competition in the next briefing.

“The government is protecting three industrialists at the expense of car users and this discriminatory policy should be abolished,” said Kashmala Tariq, a committee member.

Published in The Express Tribune, May 18th, 2012.]]>
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			<title>Increased trade with India</title>
			<link>https://tribune.com.pk/story/375851/increased-trade-with-india</link>
			<comments>https://tribune.com.pk/story/375851/increased-trade-with-india#comments</comments>
			<pubDate>Tue, 08 May 12 17:17:50 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
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			<category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=375851</guid>
			<description>
				<![CDATA[Once mistrust is minimised, governments can get around to discussing thorny, seemingly unsolvable issues like Kashmir.]]>
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				<![CDATA[As Pakistan and India inch towards better ties, hope lies in the fact that the two governments currently in power seem committed to improving relations in a realistic, concrete manner. Seemingly realising that an accord on Kashmir or agreements on terrorism are beyond the realm of possibility at this time, the two sides have concentrated on trade, where there are mutual benefits to be found. Speaking at a cross-border business conference in Lahore, Prime Minister Yousaf Raza Gilani echoed this, saying that he can foresee trade between the two countries running into billions of dollars. Till now, senseless restrictions and prohibitive tariffs have held potential trade between the two countries back. All this seems to be slowly changing as both sides realise that the fruits of trade can help overcome historical enmity.

Another sign of progress is that the main opposition party is trying to outflank the government by being even more dovish in its policy towards India, rather than going after the government for not being hawkish enough. Just a few days ago, PML-N chief Nawaz Sharif said that Pakistan should abolish the visa regime with India, even if it has to do so unilaterally. Even the PPP government, as eager as it is to pursue peace with India, will not take quite so bold an action but that it is being pressed to speed up the pace of normalisation with India is very encouraging. If the two biggest parties in the country decide that peace is the only way to go, the military will find it harder to stymie their efforts.
Pursuing peace through trade may be the best strategy to deploy currently, but there are other low-risk steps that can be taken concurrently. While doing away with visas altogether may not be plausible, both countries can certainly make it easier for families on both sides of the border to visit each other. Entertainers, artists and sportsmen should not have to go through hoops just to visit the other country. Such trips can serve to reduce mistrust and build ties between people who have been denied contact with their neighbours. Once mistrust is minimised, governments can get around to discussing thorny, seemingly unsolvable issues like Kashmir.
Published in The Express Tribune, May 9th, 2012.]]>
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			<title>Economic conference: Premier urges new era in trade with India</title>
			<link>https://tribune.com.pk/story/375545/economic-conference-premier-urges-new-era-in-trade-with-india</link>
			<comments>https://tribune.com.pk/story/375545/economic-conference-premier-urges-new-era-in-trade-with-india#comments</comments>
			<pubDate>Tue, 08 May 12 04:31:50 +0500</pubDate>
			<dc:creator>
				<![CDATA[agencies]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=375545</guid>
			<description>
				<![CDATA[Gilani says both countries should act with urgency to build relations of mutual trust.]]>
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				<![CDATA[Pakistan on Monday called for a ‘new era’ in economic collaboration with India, as business leaders from the two countries met for a business conference.


Prime Minister Yousaf Raza Gilani said the population of its giant neighbour offered his country’s exporters a “billion-plus market”, adding normal trade relations were vital to Pakistan achieving its economic potential.

Trade between the countries has been hampered by restrictions and tariffs -- even now, direct cross-border traffic accounts for less than one percent of their global commerce.

But Gilani said: “We want to start a new era of economic collaboration with India... so that we leave behind a legacy of peace and prosperity for our future generations.”

He told delegates there were many areas and sectors with huge trade potential, from information technology to engineering, education and health.

“Our textiles, I am told, have a huge market across the border,” he said, adding that India could find a market in Pakistan for goods including chemicals, pharmaceuticals and engineering products.

The premier also said Pakistan is committed to resolving all outstanding issues with India through dialogue.

“We want all our core issues settled through dialogue on equitable basis,” Gilani said while addressing the inaugural session of a two-day ‘Aman Ki Asha Business Conference’.

Underlining the commitment shown by the business communities of both countries, the PM said peace and normalization of relations between the two countries towards a peaceful and prosperous future was the only way forward.

“The world is marching on and it is time for us to shed the baggage of the past and grab the opportunity at hand and act with urgency to build relations of mutual trust.”

Adi Godrej, the Confederation of Indian Industry president who is leading the Indian delegation, said: “By 2015, we should be able to achieve the target of $10 billion mutual trade between India and Pakistan,” adding that matters pertaining to Foreign Direct Investment (FDI), non-tariff barriers, energy trade, and opening of air and land trade routes between the two countries needed greater focus.

Meanwhile, Pakistan Business Council (PBC) Chairman Asad Umar also wished for improved trade ties with India and looked forward to ‘a meaningful relationship’ between the neighbours. However, Umar expressed concern about India’s inattention to Pakistan’s textile products, since India was more focused on textile exports from Bangladesh and Sri Lanka.

Pakistan has decided to grant India ‘most favoured nation’ trading status by the end of the year, ending strict curbs on what New Delhi can export across their border.

At present, Pakistan maintains a list of 1,945 items allowed to run from India to Pakistan -- but only 108 can be transported directly by road through the Wagah crossing in Punjab.

India now also says it is ready to end a ban on investment from Pakistan and the countries are planning to allow multiple-entry business visas to spur exchanges -- a key demand by company executives.

Last year India exported goods worth $2.33 billion to Pakistan, while imports from its neighbour were worth $330 million.

Published in The Express Tribune, May 8th, 2012.]]>
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			<title>India agreed on FDI from Pakistan: Anand Sharma</title>
			<link>https://tribune.com.pk/story/373293/india-agreed-on-fdi-from-pakistan-anand-sharma</link>
			<comments>https://tribune.com.pk/story/373293/india-agreed-on-fdi-from-pakistan-anand-sharma#comments</comments>
			<pubDate>Thu, 03 May 12 03:59:08 +0500</pubDate>
			<dc:creator>
				<![CDATA[news.desk]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=373293</guid>
			<description>
				<![CDATA[Move is expected to enhance the commercial engagement and bilateral trade between India and Pakistan, says Sharma.]]>
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				<![CDATA[India has in principle agreed to allow foreign direct investment (FDI) from Pakistan, a move expected to boost trade between the two countries, India’s Commerce and Industry Minister Anand Sharma said on Wednesday.


“During discussions, both sides agreed upon the desirability of promoting bilateral investments and removing impediments for such investments and to start the transition process for normalisation of trading of goods and services, including investment,” Sharma told Rajya Sabha, the upper house of parliament.

“The move is expected to enhance the commercial engagement and bilateral trade between India and Pakistan,” he said, according to the Indians Abroad News Service (INS).

Sharma said his ministry has requested the ministry of finance to amend the Foreign Exchange Management Act (FEMA) to allow FDI from Pakistan. Pakistan is the only country from where investment is not permitted in India.

Meanwhile, President Asif Ali Zardari said that granting the Most Favoured Nation (MFN) status to India was a paradigm shift in policy driven by the business sectors on both sides of the border.

The decision would reconstruct the region’s economies and increase its stability, he said while speaking at a dinner hosted by the Lahore Chamber of Commerce and Industry (LCCI) at the Presidency on Wednesday.

According to the Associated Press of Pakistan, the president said Pakistan has signed business investment treaties with many nations to boost business activities. The president said that Pakistan was committed to promoting an investor-friendly environment and it has much more to offer than bad news only.

Published in The Express Tribune, May 3rd, 2012.]]>
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			<title>Peacekeeping campaign: India, Pakistan hope to achieve peace through trade diplomacy</title>
			<link>https://tribune.com.pk/story/373185/peacekeeping-campaign-india-pakistan-hope-to-achieve-peace-through-trade-diplomacy</link>
			<comments>https://tribune.com.pk/story/373185/peacekeeping-campaign-india-pakistan-hope-to-achieve-peace-through-trade-diplomacy#comments</comments>
			<pubDate>Wed, 02 May 12 21:37:16 +0500</pubDate>
			<dc:creator>
				<![CDATA[afp]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=373185</guid>
			<description>
				<![CDATA[Improved relations stem from MFN status given to India.]]>
			</description>
			<content:encoded>
				<![CDATA[India and Pakistan which are still at loggerheads on Kashmir and no closer to a full peace deal are channelling their efforts into increasing trade in the hope that business can bring them together.

Traders in Pakistan are eager to seize the opportunities offered by easier links between the estranged neighbours, which have fought three wars since independence in 1947.

The improved relations between the nuclear-armed rivals stem from Pakistan’s decision to grant India “Most Favoured Nation (MFN)” status by the year end, meaning Indian exports will be treated the same as those from other nations. Indian commerce secretary Rahul Khullar said that Pakistan’s decision to grant India MFN status by the end of the year was “the game-changer.”

MFN status will mean India can export 6,800 items to Pakistan, up from around 2,000 at present, and the countries aim to boost bilateral trade to $6 billion within three years.

India now also says it is ready to unban investments from Pakistan and the countries are planning to allow multiple-entry business visas to spur exchanges, a key demand by business executives.

The warming commercial ties underline the new relevance of the private sector in the peace process, with prospects still low for any rapid settlement of the core Kashmir issue.

Indian and Pakistani officials have been looking at the so-called “China option” as a model, with deepening economic engagement seen by experts as crucial to establishing lasting peace in the troubled region.

“There is no other option but economic interdependency between India and Pakistan which will lead on to other partnerships,” Indian Commerce Minister Anand Sharma said at the Pakistani trade fair in Delhi. “We have to recognise our true trade potential and leave our children with a legacy that ensures prosperity, harmony and peace” he added.

Some Pakistani businesses have protested against the trade opening, fearing they may be swamped by cheaper Indian goods, especially in drugs, auto parts and consumer goods. However, others eye the possibilities India’s market of 1.2 billion people offers.

Indian businessmen are equally enthusiastic, saying there is an opportunity for trade in areas from agriculture, information technology, pharmaceuticals, engineering to chemicals.

Official bilateral trade figures between India and Pakistan is just $2.7 billion and heavily tilted in New Delhi’s favour, but Indian business chamber Assocham estimates up to $10 billion worth of goods are routed illicitly through Afghanistan or shipped from Singapore and the Gulf.

Published in The Express Tribune, May 3rd, 2012.]]>
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			<title>Govt striving to normalise trade with India, says Khar</title>
			<link>https://tribune.com.pk/story/373069/govt-striving-to-normalise-trade-with-india-says-khar</link>
			<comments>https://tribune.com.pk/story/373069/govt-striving-to-normalise-trade-with-india-says-khar#comments</comments>
			<pubDate>Wed, 02 May 12 16:30:51 +0500</pubDate>
			<dc:creator>
				<![CDATA[zahid.gishkori]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=373069</guid>
			<description>
				<![CDATA[Adds that a negative list of 1209 items has been notified and it will be phased out by December this year.]]>
			</description>
			<content:encoded>
				<![CDATA[Government is striving to normalise trade with India, said Foreign Minister Hina Rabbani Khar on Wednesday while speaking in the National Assembly during the question and answer hour.

She said that as a first step, a negative list of 1209 items has been notified which will be phased out by December this year, leading to complete normalisation of trade with India. The Foreign Minister said she hopes India will also remove non-tariff barriers for the improvement of trade ties, which will ultimately be beneficial to the consumers of both the countries.

Speaking about Pakistan’s relations with other countries in the recent years, Khar said international relations with important countries have improved due to the efforts made by the current government.

“Getting preferential trade access to the EU markets is a success of the present government,” she claimed.

During the question hour, the Pakistan Muslim League-Nawaz (PML-N) members continued their sloganeering against Prime Minister Yousaf Raza Gilani. They also tore copies of the question hour sheet.

National Assembly Speaker Dr Fehmida Mirza asked the opposition members not to undermine the supremacy of the Parliament and observe parliamentary decorum. However, the PML-N members continued with their agitation, disrupting the proceedings.

Gilani supports Pak-India trade

Prime Minister Yousaf Raza Gilani said on Wednesday that all steps are being taken to promote trade as well as social ties between India and Pakistan.

Addressing a Pak-India Scouts gathering, Gilani said that President Asif Ali Zardari has also met with Indian Prime Minister Manmohan Singh and both have agreed to boost friendly relations to ensure peace in the region.

India has also in-principle agreed to allow foreign direct investment (FDI) from Pakistan as announced by Indian Commerce and Industry Minister Anand Sharma, reported IANS.

According to the report, Sharma said that the move is expected to enhance the commercial engagement and bilateral trade between India and Pakistan.]]>
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			<title>India, Pakistan try 'trade diplomacy'</title>
			<link>https://tribune.com.pk/story/372965/india-pakistan-try-trade-diplomacy</link>
			<comments>https://tribune.com.pk/story/372965/india-pakistan-try-trade-diplomacy#comments</comments>
			<pubDate>Wed, 02 May 12 05:55:49 +0500</pubDate>
			<dc:creator>
				<![CDATA[afp]]>
			</dc:creator>
			<category><![CDATA[World]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=372965</guid>
			<description>
				<![CDATA[Improved relations stem from Pakistan's decision to grant India &quot;Most Favoured Nation&quot; status by year end.]]>
			</description>
			<content:encoded>
				<![CDATA[India and Pakistan, still at loggerheads on Kashmir and no closer to a full peace deal, are channeling their efforts into increasing trade in the hope that business can bring them together.

31-year-old Karachi food trader Kashif Gul Memom is among those eager to seize the opportunities offered by easier links between the estranged neighbours, which have fought three wars since independence in 1947.

"This is a change for the good. It's an exciting time," said Memom, one of the generation born after the painful partition of the subcontinent that gave birth to India and the Islamic republic of Pakistan.

"My generation of business people is putting the past behind us. We're looking to the future, India is such a huge market for us," Memom told AFP while at the largest ever Pakistani trade fair held in India.

The improved relations between the nuclear-armed rivals stem from Pakistan's decision to grant India "Most Favoured Nation (MFN)" status by year end, meaning Indian exports will be treated the same as those from other nations.

In further progress, the neighbours opened a second trading gate in April along their heavily militarised border, boosting the number of trucks able to cross daily to 600 from 150.

India now also says it is ready to end a ban on investment from Pakistan and the countries are planning to allow multiple-entry business visas to spur exchanges -- a key demand by company executives.

The warming commercial ties underline the new relevance of the private sector in the peace process, with prospects still low for any swift settlement of the "core issue" of the nations' competing claims to Kashmir.

The divided Himalayan territory has been the trigger of two of their three wars since independence.

Indian and Pakistani officials have been looking at the so-called "China option" as a model, with deepening economic engagement seen by experts as crucial to establishing lasting peace in the troubled region.

Beijing and New Delhi have been pursuing stronger economic ties while resolving outstanding political issues, such as a festering border dispute that erupted into a brief, bloody war in the 1960s.

"There is no other option but economic partnership between India and Pakistan -- this leads on to other partnerships," Indian Commerce Minister Anand Sharma said at the April trade fair in Delhi, a follow-on to a similar venture in Lahore earlier in the year.

"We have to recognise our true trade potential and leave our children with a legacy that ensures prosperity, harmony and peace."

Some Pakistani businesses have protested against the trade opening, fearing they may be swamped by cheaper Indian goods, especially in drugs, auto parts and consumer goods. But others eye the possibilities India's market offers.

"India with 1.2 billion people gives us great potential," Mian Ahad, one of Pakistan's leading furniture designers, told AFP.

Indian businessmen are equally enthusiastic, saying there is an opportunity for trade in areas from agriculture, information technology, pharmaceuticals, and engineering to chemicals.

Official bilateral trade between India and Pakistan is just $2.7 billion and heavily tilted in New Delhi's favour.

But Indian business chamber Assocham estimates up to $10 billion worth of goods are routed illicitly -- carried by donkeys through Afghanistan or shipped by container from Singapore and the Gulf.

Indian commerce secretary Rahul Khullar told AFP that Pakistan's decision to grant India MFN status by the end of the year was "the game-changer."

MFN status will mean India can export 6,800 items to Pakistan, up from around 2,000 at present, and the countries aim to boost bilateral trade to $6 billion within three years.

"I'm cautiously optimistic. Commerce is an excellent way to bring countries together," Indian strategic analyst Uday Bhaskar told AFP.

"Once you institutionalise trade, it becomes hard to slow the momentum for cross-border exchanges. People say if there are onions or cement or sugar available next door, why can't I have them? And why can't I travel there too?"]]>
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			<title>‘India willing to invest at least $20b in Pakistan’</title>
			<link>https://tribune.com.pk/story/372721/%e2%80%98india-willing-to-invest-at-least-20b-in-pakistan%e2%80%99</link>
			<comments>https://tribune.com.pk/story/372721/%e2%80%98india-willing-to-invest-at-least-20b-in-pakistan%e2%80%99#comments</comments>
			<pubDate>Tue, 01 May 12 21:31:14 +0500</pubDate>
			<dc:creator>
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			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=372721</guid>
			<description>
				<![CDATA[Pak-India Business Council chairman returns from two-week trip.]]>
			</description>
			<content:encoded>
				<![CDATA[Indian investors have shown willingness to invest $20 billion to 50 billion in Pakistan’s mining, petroleum, energy, power and infrastructure projects. Pak-India Business Council (PIBC) Chairman Noor Muhammad Kasuri said that there are several big investors in India interested in exploring opportunities in Pakistan. Kasuri returned from India on Tuesday after a fortnight visit and having meetings with the Indian business community.

He added that the Indian private sector has also shown eagerness to export electricity to Pakistan through Wagah-Attari border and can lay electricity lines within months for this purpose. At the Nuclear Security Summit in March, India had formally offered Pakistan 5,000MW of electricity during a brief meeting between Indian Prime Minister Dr Manmohan Singh and Prime Minister Yousaf Raza Gilani.

After enhancement in trade ties, opportunities for big projects like gas pipeline project between Turkmenistan, Afghanistan, Pakistan and India will further increase. He stated that access and acceptability for Pakistani products in Indian markets has been improved after recent initiatives to improve relations between both governments.

PIBC Chairman also examined that India has developed infrastructure in tourism, information technology, agriculture, business and industrial fields and Pakistan can take advantage from Indian experiences.

Moreover, Pakistani businessmen and industrialists should avail opportunities in this regard through hard work and honesty. PIBC has also suggested to governments of both the countries to establish joint industrial and economic zones.

Published in The Express Tribune, May 2nd, 2012.]]>
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			<title>Liberalisation of visas</title>
			<link>https://tribune.com.pk/story/371728/liberalisation-of-visas</link>
			<comments>https://tribune.com.pk/story/371728/liberalisation-of-visas#comments</comments>
			<pubDate>Sun, 29 Apr 12 14:49:28 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Business]]></category><category><![CDATA[World]]></category><category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=371728</guid>
			<description>
				<![CDATA[Pakistan and India have steadily been making progress on a host of issues of common interest.]]>
			</description>
			<content:encoded>
				<![CDATA[In yet another indication that the peace process between Pakistan and India is inching forward, the Indian Prime Minister Manmohan Singh’s cabinet has reportedly approved a relaxed visa regime which seeks to allow businessmen on multiple entry, non-reporting visas to travel to five cities with everyone else permitted to visit up to three cities. Taken in isolation, this seems like the kind of baby step that should certainly be welcomed but not necessarily seen as a harbinger of lasting peace. Doing so, however, would be a mistake. Rather than going for a grand gesture, the two countries have steadily been making progress on a host of issues of common interest, including trade, coupled with regular meetings between government officials on both sides. All this adds up to the best relations Pakistan and India have enjoyed in many years, a milestone that has been slightly obscured by the slow pace with which it has been achieved. For now, though, this may be the most effective way of normalising relations between the two countries.

There are certainly other small steps, even in the visa process, that can be taken to help the peace process along. As important as trade and commerce is, there are other fields where both countries should be welcoming visitors. The arts, culture and sports are all areas where person-to-person contact can help change hearts and minds. Making it easier for people from such areas to visit the other country is a low-risk and high-reward endeavour. In addition, now may be the right time to release all the fishermen held in India and Pakistan indefinitely for the crime of inadvertently crossing an unmarked border.

Even if all these measures are put into place, it would be naive to think that all outstanding issues between the two countries can be solved anytime soon. The twin problems of Kashmir and terrorism are unlikely to be negotiated in the foreseeable future and with the establishment in Pakistan and the hawks in India still exerting considerable influence, even those as committed to peace as the PPP and the Congress will not be able to make headway. Far better is the current approach that puts these issues on the backburner. Once enough steps have been taken to increase trust on both sides, these issues can be addressed.

Published in The Express Tribune, April 30th, 2012.]]>
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			<title>India negotiating with Pakistan over fuel exports</title>
			<link>https://tribune.com.pk/story/371552/india-negotiating-with-pakistan-over-fuel-exports</link>
			<comments>https://tribune.com.pk/story/371552/india-negotiating-with-pakistan-over-fuel-exports#comments</comments>
			<pubDate>Sat, 28 Apr 12 22:01:47 +0500</pubDate>
			<dc:creator>
				<![CDATA[reuters]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=371552</guid>
			<description>
				<![CDATA[Bhatinda oil refinery set up 100km away from Pakistan’s border.]]>
			</description>
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				<![CDATA[“India has held talks over exporting refined fuels to its neighbour Pakistan,” said the head of Hindustan Mittal Energy at the inauguration of the company’s new refinery at Bhatinda located 100km from Pakistan’s border. The $4 billion project is a joint venture of state owned Hindustan Petroleum Corporation Ltd (HPCL) and Mittal Energy, owned by steel king Lakshmi Mittal.


Moves to stimulate trade flows and liberalise restricted investment rules have emerged as the key driver of peace efforts between the neighbours, whose fragile ties were shattered when Pakistani militants attacked the Indian city of Mumbai in 2008.

“There were government-to-government discussions. A delegation from Pakistan came but nothing has been finalised,” said HPCL and Hindustan Mittal Energy Chairman S Roy Choudhury

“Any decision has to make economic sense,” he added.

Pakistan said last month it was close to removing petrol from a list of banned imports from India. It allowed diesel imports in 2009, but no Indian supplies were sent in the face of preferential prices offered by allies such as Kuwait.

“We have significant refining capacity to enable us to export petroleum products,” Prime Minister Manmohan Singh said at the official opening ceremony of the Bathinda refinery.

On the contrary, industry experts said that fuel exports by India to Pakistan could be difficult as India’s own fuel demand is rising, and Pakistan uses fuel of lower specification than what is being produced at Bathinda and other Indian refineries.

Hindustan Mittal Energy is in talks with Kuwait and Saudi Arabia for long-term crude supplies, Choudhury said. The refinery will help to meet fuel demand in the India’s northern region, which is short of refined products.

India’s current refining capacity is close to 4.3 million barrels per day (bpd), including Bathinda’s 180,000 bpd. The plant may eventually double capacity to 360,000 barrels per day, said Mittal, also chairman of steel giant ArcelorMittal.

India decided to permit foreign direct investment from Pakistan this month, in the latest sign of thawing economic ties between two nuclear-armed foes that have fought three wars since their independence from Britain in 1947. 

Published in The Express Tribune, April 29th, 2012.]]>
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			<title>‘Trade with India to benefit plastic, surgical and textile sectors’</title>
			<link>https://tribune.com.pk/story/370523/%e2%80%98trade-with-india-to-benefit-plastic-surgical-and-textile-sectors%e2%80%99</link>
			<comments>https://tribune.com.pk/story/370523/%e2%80%98trade-with-india-to-benefit-plastic-surgical-and-textile-sectors%e2%80%99#comments</comments>
			<pubDate>Fri, 27 Apr 12 00:59:47 +0500</pubDate>
			<dc:creator>
				<![CDATA[imran.rana]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=370523</guid>
			<description>
				<![CDATA[Former ambassador outlines benefits of trade normalization.]]>
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				<![CDATA[Pakistan’s plastic, surgical and textile sectors can benefit from normalisation of trade ties with India, Dr Manzoor Ahmad, former ambassador to the World Trade Organization, has said. He was speaking at a seminar organised by the Trade Development Authority of Pakistan.

Ahmad gave an overview of the trade normalisation process between the two countries. While presenting a briefing on Pakistani exports, he pointed out that Pakistani exporters depended mostly upon European Union (EU) and United States (US) markets. He opined that Pakistani exporters should turn their focus to regional markets. “In case of unprecedented developments in the relationship with the EU or USA, Pakistan should have the option to trade with regional countries,” he suggested.

“Pakistani plastic goods are highly preferred in India due to their quality,” he said. “Similarly, Pakistan can capture the market for fans and leather goods, which are currently being imported from China and Vietnam by India. Pakistan already exports surgical instruments to India via Germany – if we directly trade with India, we can earn an extra $200 million,” he added.

He was hopeful that the agreements on mutual recognition and customs cooperation being signed by India and Pakistan will help overcome non-tariff barriers imposed by the Indian government. “Indian tariffs average eight to 18%, while Pakistan imposes tariffs of approximately 35%. These discourage trade across the borders,” he explained.

Ahmad informed the gathering that molasses and ethanol exports to India account for $66 million worth of exports. Furthermore, cement exports to India currently stand at 600,000 tons, but can be expanded to 1.5 million tons per annum, he noted.

Faisalabad Chamber of Commerce and Industry President Muzammil Sultan agreed that regional trade was a significant factor in the economic development of a country. However, he expressed concerns that Pakistan was not sufficiently geared to benefit from trade normalisation with India due to incessant power shortages.

Published in The Express Tribune, April 27th, 2012.]]>
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			<title>One step closer: State Bank of India prepares to open branches in Pakistan</title>
			<link>https://tribune.com.pk/story/369757/one-step-closer-state-bank-of-india-prepares-to-open-branches-in-pakistan</link>
			<comments>https://tribune.com.pk/story/369757/one-step-closer-state-bank-of-india-prepares-to-open-branches-in-pakistan#comments</comments>
			<pubDate>Wed, 25 Apr 12 14:45:52 +0500</pubDate>
			<dc:creator>
				<![CDATA[Aditi Phadnis]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category><category><![CDATA[Business]]></category><category><![CDATA[World]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=369757</guid>
			<description>
				<![CDATA[Reserve Bank of India is getting ready to invite applications from interested commercial banks.]]>
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				<![CDATA[After 45 years of shutting its service in Karachi and Lahore, the State Bank of India is looking forward to visiting and working in Pakistan again after the two countries agreed in principle to allow banks from both sides to open branches across the borders.

On the Indian side, the Reserve Bank of India is getting ready to invite applications from interested commercial banks, following a meeting of their officials earlier this month. For Indian banks, the biggest problem seems to be the high capitalisation requirement for banks in Pakistan, which Indian lenders find steep.

Newspaper reports quoted bank officials as saying, “There were some differences on the financial parameters for eligibility of banks as the Pakistani side had kept capitalisation norms too high. But the requirement has been scaled down now and the norms have been finalized.”

The two sides have also reached an agreement on the licensing fees that banks will have to pay, reports said.

The modalities will now be circulated to banks, which will then put in applications depending on the feasibility of the proposal. The State Bank of India and Bank of India approached the State Bank of Pakistan in September 2008 seeking permission to start branches again, but high capitalisation requirements forced them to drop their interest in the scheme.

The recent meeting between officials of the two central banks followed the meeting between Indian and Pakistani commerce ministers in New Delhi on April 13, where they announced their intent to fast-track opening of bank branches to boost trade.]]>
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			<title>Trade with India</title>
			<link>https://tribune.com.pk/story/368392/trade-with-india-4</link>
			<comments>https://tribune.com.pk/story/368392/trade-with-india-4#comments</comments>
			<pubDate>Sun, 22 Apr 12 17:20:21 +0500</pubDate>
			<dc:creator>
				<![CDATA[editorial]]>
			</dc:creator>
			<category><![CDATA[Editorial]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=368392</guid>
			<description>
				<![CDATA[Trade remains the only medium of radical change, it removes the national frontier as a locus of tension and conflict.]]>
			</description>
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				<![CDATA[During his campaign aimed at responding to the increasingly harsh challenge of the PML-N in Punjab, President Asif Ali Zardari has been touring the stronghold of the ruling party, shoring up the PPP’s position. When he reached Okara he spoke near the old Sulemanki border post with India, declaring that “Pakistan is willing to have dialogue with India on all issues, and is also open to trade with the neighbouring country”.

He was speaking against the background of the recent visit to New Delhi and Attari by the commerce minister, confirming an initial agreement between the two countries to enhance bilateral trade and soften the visa regime. The two sides are preparing negative lists of commodities so that free trade can take place and they can begin the transformational process to dwarf long-standing bilateral disputes. Beyond the bilateral focus, there is the prospect of South Asian trade across Pakistan to Central Asia and across India to East Asia.

Are we standing at the gateway of a big change? A look at history tells us that wars and trade have always brought about big changes. In our day, wars are difficult to wage as the global order is firmly bound to the status quo. Trade remains the only medium of radical change. It removes the national frontier as a locus of tension and conflict, and reintroduces it as the medium of developmental synergy between sovereign states. Pakistan anticipates big traffic on the roads that traditionally connected the two states and is already expanding the road leading to the Wagah border.

Initially, the attraction of this new project is for those industries and traders who export: Pakistan expects to export 1,650 items — woven fabrics, garments, bed linen, footwear, dates and chickpeas. India expects to export 3,286 items — automobiles, diesel trucks, black tea, pneumatic tyres, antibiotics and reactive dyes. Pakistani exporters will gain from the negative differential between the currencies of the two countries: the Pakistani rupee is half the value of the Indian rupee. India expects Pakistani investments to land in East Punjab pending the bad law and order situation in Pakistan.

President Zardari cannot have missed the rapid progress Bangladesh has made with respect to the opening of multiple routes connecting India with other neighbours across its territory. It has crossed the psychological barrier that bedevilled Dhaka because of the primacy of bilateral disputes in its relations with India. Bangladesh intends to provide transit facilities to India, along with Nepal and Bhutan by March 2013. It has already allowed a wide transit road joining India with its states in the northeast.

Opponents of trade opening often say that there is no big potential in the free-trade regime that is being inaugurated. After all, the export potential from India to Pakistan is $9.5billion, while that from Pakistan to India is $2.2billion. It is apparently nothing compared with India’s trade with China at $75billion. They say trade with Central Asia through Pakistan will be of small value because Central Asia does not have the population that could be counted as a big market for Pakistani and Indian goods. This position is belied by the rising energy needs of South Asia and the potential of energy export from Central Asia based on regional surplus now going from Central Asia through Russia to Europe. If Pakistan looks closely at the smuggling of its agricultural commodities through Afghanistan, it will realise that a regional network of roads to Central Asia will transform Pakistan’s economy, which is now admittedly strong in agriculture. A landlocked Central Asia is bound to grow economically with higher standards of living, which means it will need trade outlets to the sea through Pakistan.

Pakistan is shifting from its ‘military’ view of geopolitics — prevent transit trade to gain advantage — to a civilian view, which allows transit to gain economic advantage and prosperity of the people. The new paradigm is late in coming and this delay is being felt by Pakistan, as other South Asian states are currently posting high growth rates.

Published in The Express Tribune, April 23rd, 2012.]]>
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			<title>Enhancing trade: President hints at opening new trade route with India</title>
			<link>https://tribune.com.pk/story/367832/enhancing-trade-president-hints-at-opening-new-trade-route-with-india</link>
			<comments>https://tribune.com.pk/story/367832/enhancing-trade-president-hints-at-opening-new-trade-route-with-india#comments</comments>
			<pubDate>Sat, 21 Apr 12 05:53:25 +0500</pubDate>
			<dc:creator>
				<![CDATA[our.correspondent]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=367832</guid>
			<description>
				<![CDATA[Zardari says he will discuss a proposal to open Head Sulemanki border with India.]]>
			</description>
			<content:encoded>
				<![CDATA[President Asif Ali Zardari has hinted that the PPP-led government could open another trade route with India. He added that troops pullout from Siachen Glacier was possible, if the two countries agree on it.


The proposal to connect Multan with New Delhi through Head Sulemanki was floated by Minister for Kashmir Affairs Mian Manzoor Wattoo to boost trade between the two countries. The president said he would discuss the proposal with Prime Minister Yousaf Raza Gilani.

“We are aware of the extreme climate and other difficulties at one of the world’s most difficult terrains but troops withdrawal could only take place if the two governments decided to disengage jointly,” the president told a public gathering in the Wasawela area of Okara on Friday.

The gathering offered special prayers for the valiant soldiers who remain trapped under an avalanche in Giari sector at Siachen Glacier.

Friday was observed by the nation as Youm-e-Dua (Day of Prayers).

The president said the PPP-led democratic government believed that trade between Pakistan and India could bring prosperity to the two nations.

In his recent meeting with Indian Prime Minister Dr Manmohan Singh in New Delhi President Zardari had also focused the discussion on enhancing trade ties between the two countries.

He said that when he assumed office, all powers were concentrated in the office of the president but he himself gave up all his powers to the real representatives of the people in order to make parliament stronger.

Referring to the 17 provincial ministries in control of the Punjab chief minister, the president said this was the main difference between the PPP and other parties.

While other parties avoid transferring a few ministries, the PPP has transferred all its powers to the provinces, he added. “Only through empowering the people and the provinces, the federation could be further strengthened.”

The president said the PPP had taken up the issue of Seraiki province as it believed that any failure by the mainstream parties to address the issues of the people of the South Punjab might provide an opportunity to militant groups or any other party to take advantage of the situation and play on the people’s sentiments.

Zardari called upon PPP’s leadership in Punjab to engage the people of the province in a dialogue and to invite them to join its ranks so as to strengthen the party and to enable it to form the next government in Punjab.

Published in The Express Tribune, April 21st, 2012.]]>
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			<title>Trade with India: Zardari hints at opening Sulemanki border</title>
			<link>https://tribune.com.pk/story/367536/trade-with-india-zardari-hints-at-opening-sulemanki-border</link>
			<comments>https://tribune.com.pk/story/367536/trade-with-india-zardari-hints-at-opening-sulemanki-border#comments</comments>
			<pubDate>Fri, 20 Apr 12 12:02:30 +0500</pubDate>
			<dc:creator>
				<![CDATA[Ema Anis]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=367536</guid>
			<description>
				<![CDATA[President says he is also examining the possibility of connecting Multan with India.]]>
			</description>
			<content:encoded>
				<![CDATA[President Asif Ali Zardari, while addressing a gathering in Okara, hinted at opening Sulemanki border and said that Pakistan is willing to have dialogue with India on all issues, and is also open to trade with the neighbouring country.

The president said that he is also examining the possibility of connecting Multan with India.

“A politician’s last weapon is dialogue. If you’re not talking today, it doesn’t mean you won’t have to talk tomorrow,” he remarked.

After offering a prayer for the soldiers buried in Siachen, the president questioned the possibility of a unilateral withdrawal of troops from the “world’s highest battlefield”.

“How can there be a unilateral withdrawal? Have we been sitting for 10 years doing nothing? Yes, our soldiers are being sacrificed but we are a nation who makes sacrifices.”

Hitting back at PML-N

Boasting his dissemination of power to the parliament and provinces, Zardari criticised Punjab Chief Minister Shahbaz Sharif for “accumulating” 17 ministries to himself. “This is the difference between Pakistan Peoples Party (PPP) and other parties… How can one person handle 17 ministries?”

He added, “I had power, I could break down the parliament, but I diluted it in every form and distributed it.”

“What these parties do not understand is reconciliation. If you cannot reconcile with other parties, how can you have good relations with other countries when you’re in power?” he further questioned.]]>
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			<title>Pakistan upbeat on trade with India</title>
			<link>https://tribune.com.pk/story/366988/hafeez-shaikh-upbeat-on-trade-with-india</link>
			<comments>https://tribune.com.pk/story/366988/hafeez-shaikh-upbeat-on-trade-with-india#comments</comments>
			<pubDate>Thu, 19 Apr 12 06:09:32 +0500</pubDate>
			<dc:creator>
				<![CDATA[afp]]>
			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=366988</guid>
			<description>
				<![CDATA[Financ­e minist­er sees  popula­r suppor­t for buildi­ng ties with the neighb­ouring countr­y.]]>
			</description>
			<content:encoded>
				<![CDATA[Pakistan’s Finance Minister Hafeez Shaikh on Wednesday voiced optimism about trade with India, saying that he saw popular support for building ties with the neighbouring country and benefiting from its "dynamic" economy.

"There was a time when I used to evaluate Pakistan and I thought the best way for it to really develop is to relocate. I used to think that the best place for us to take Pakistan would be somewhere between Italy and Switzerland," Hafeez Shaikh said in jest.

"Now I've changed my mind because the parts that I thought we should be located in (Europe) aren't doing that great in terms of growth and where we are is the most dynamic part of the world," he said.

"So I think we should stay there, we should work and be good neighbors with each other," Shaikh, who was visiting Washington for the annual World Bank/IMF spring meetings, said at the Brookings Institution think-tank.

The South Asian Association for Regional Cooperation, an eight-nation bloc, has repeatedly pledged to boost economic ties but such promises have made little headway amid the constant friction between India and Pakistan.

But Shaikh said that the new trade initiative enjoyed firm support of both business and political leaders.

"It reflects considerable thinking and it shows the economic merit that's there," he said.

"So I personally feel quite optimistic that this is an area where the payoffs are there."

Pakistan has faced persistent economic concerns amid a shaky supply of electricity, a weak revenue base, high external debt and security concerns that have scared off some foreign investors.

Shaikh, however, painted an upbeat picture and said that Pakistan's economy would grow this year at 4% - above IMF forecasts and well up from 2.4% last year - due to solid crop yields and a rebound in manufacturing.]]>
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			<title>Pakistan is serious —and means business</title>
			<link>https://tribune.com.pk/story/365654/pakistan-is-serious-%e2%80%94and-means-business</link>
			<comments>https://tribune.com.pk/story/365654/pakistan-is-serious-%e2%80%94and-means-business#comments</comments>
			<pubDate>Mon, 16 Apr 12 19:49:48 +0500</pubDate>
			<dc:creator>
				<![CDATA[talat.masood]]>
			</dc:creator>
			<category><![CDATA[Opinion]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=365654</guid>
			<description>
				<![CDATA[Army overstretched, soured relations with US, a troubled economy, it is only prudent to improve relations with India.]]>
			</description>
			<content:encoded>
				<![CDATA[The recent private visit of President Asif Ali Zardari to India and his one-to-one meeting with Prime Minister Manmohan Singh has contributed in reducing tensions and created an opening for the leadership of the two countries to move forward. At the personal level, too, both the leaders are sincere and committed to give a fillip to the peace process. Prime Minister Singh’s statement that they are willing  “to find tactical, pragmatic solutions” to all issues that have bedevilled their relationship is a demonstration of this commitment. The question arises whether this time India and Pakistan will cash on this bonhomie to start a transformational process or simply let it wither away.

States are supposed to act rationally in their dealings with one another, which regrettably has not been the norm when it comes to India-Pakistan relations. Pakistani policymakers have always maintained that normalisation of relations with India should be conditional to progress on the resolution of the Kashmir issue. For the Indians, they would like to see Islamabad take concrete steps to prevent acts of terrorism by reining in militant groups. Clearly, these are critical issues for both governments and will remain so, but by normalising relations the chances for their resolution in the long term will be higher. It is also time to shed the legacy of the three wars and several major skirmishes and military stand-offs that the two countries have been involved in. If they do not do this, they will continue to remain hostage to radical elements. Fortunately, the step taken by Pakistan to grant most-favoured nation status to India and develop commercial and economic linkages on a fast track on the so-called India-China model will indeed develop interdependence, and is in the long-term interest of both neighbours. For India, opening up of the Pakistani border for trade provides a market of nearly 200 million people.

In Pakistan, the army is already overstretched fighting militancy in the tribal areas; the country’s economy is in deep trouble and the situation in Karachi, Balochistan and Gilgit-Baltistan is volatile. Relations with the US face a major crisis and hence, with so many odds facing the country, it is only prudent to improve relations with India. While India keeps accusing Islamabad of not doing enough on terrorism, the reality is that containing insurgency and combating terrorism is crucial for Pakistan’s own integrity and preservation as a state.

The Indians may well argue that the rise of militancy in Pakistan is the result of its own policy of creating and using asymmetrical forces to countervail India. By seeing the problem through a narrow coloured prism, India overlooks the fact that there is still deep alienation in major parts of Kashmir and this gives rise to periodic uprisings against the state — which is then suppressed through the use of force. This in turn leads militant groups in Pakistan to support the insurgency across the border. In the past, these jihadi groups had the support of the security establishment but that policy has now changed. The jihadi elements have turned inwards and the Pakistani establishment realises the dangers inherent in supporting them.

The growing differential in power between India and Pakistan precludes any possibility that India will agree to any territorial readjustment in Kashmir. New Delhi also uses the secular card for rejecting any further partitioning of India. In the interim, the best Pakistan should expect is that the two sides could agree to soften borders between the Indian and Pakistani parts of Kashmir. The resolution of Siachen and Sir Creek is relatively easy, provided India shows some flexibility and pragmatism. The hard line taken by the Indian army on Siachen is based on narrow institutional interests and not on any strategic considerations and needs a serious rethink. In fact, the recent tragedy of Siachen is a stark reminder for resolving the issue at the earliest. It will save lives, reduce defence expenditures and prevent ecological disaster.

The Pakistan Army’s heavy commitment in fighting insurgency within the country and the general poor state of economy has made the military leadership inclined towards supporting improved relations with India. India can contribute to mitigating militancy in Pakistan and the region by reducing and pulling back its forces from the border so that Pakistani forces could focus on the western border in their fight against the TTP.

Hopefully, these opportunities will not be lost.

Published in The Express Tribune, April 17th, 2012.

&nbsp;]]>
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			<title>Trade: Pakistan, India agree to take it a step ahead</title>
			<link>https://tribune.com.pk/story/364851/trade-pakistan-india-agree-to-take-it-a-step-ahead</link>
			<comments>https://tribune.com.pk/story/364851/trade-pakistan-india-agree-to-take-it-a-step-ahead#comments</comments>
			<pubDate>Sat, 14 Apr 12 22:34:31 +0500</pubDate>
			<dc:creator>
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			</dc:creator>
			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=364851</guid>
			<description>
				<![CDATA[There has been a substantial increase in the list of commodities permitted to be imported from India.]]>
			</description>
			<content:encoded>
				<![CDATA[Pakistan and India have agreed on Saturday to work out a road map to promote trade and economic relations for the benefit of the two business communities and end-consumers.


Commerce Minister Makhdoom Amin Fahim is in New Delhi on the invitation of his Indian counterpart Anand Sharma, making this the third bilateral meeting between the two within a time span of less than seven months.

There has been a substantial increase in the list of commodities permitted to be imported from India, said a joint statement.  Both sides expressed satisfaction at the joint and coordinated efforts that have been made for making the new gates at the Attari Integrated Check Post functional for trade.

Both sides agreed to take all further action to encourage greater trade through the newly inaugurated Integrated Check Post (ICP). “It was agreed upon that Pakistan will take necessary steps to remove extant restrictions on items permitted to be imported through the land route.

Published in The Express Tribune, April 15th, 2012.]]>
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			<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.]]>
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			<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.]]>
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				<![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.]]>
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			<title>Pakistan to offer India trade concessions</title>
			<link>https://tribune.com.pk/story/272550/pakistan-decides-to-grant-mfn-status-to-india-khar</link>
			<comments>https://tribune.com.pk/story/272550/pakistan-decides-to-grant-mfn-status-to-india-khar#comments</comments>
			<pubDate>Wed, 12 Oct 11 15:58:34 +0500</pubDate>
			<dc:creator>
				<![CDATA[qamar.zaman]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=272550</guid>
			<description>
				<![CDATA[Foreign minister assures that top-most priority of Pakistan is to ensure uninterrupted dialogue with India.]]>
			</description>
			<content:encoded>
				<![CDATA[In a sign of an increasing thaw in frosty relations between Islamabad and Delhi, Pakistan has, in principle, decided to grant Most-Favoured Nation (MFN) status to India.

“It’s our top priority to ensure uninterrupted dialogue with India, so that resolution of core issues could be ensured,” Foreign Minister Hina Rabbani Khar told lawmakers in the lower house of parliament on Wednesday.

The MFN status for India comes in return for lifting non-tariff restrictions on imports from Pakistan.

Simply put, MFN status provides trade equality among partners by ensuring that an importing country will not discriminate against another country’s goods in favour of those from a third. Once the importing country grants any type of concession to a third country, this concession must be given to all other countries.

(Read: Pakistan to grant MFN status to India … eventually)

Khar spoke about improving relations with India. “We have achieved ground on trade with India. And for the first time in history, an Indian foreign minister attended a reception hosted by Pakistan’s foreign minister in New York,” Khar said referring to her recent meeting with SM Krishna on the fringes of the US General Assembly session.

Pakistan appears to have put aside festering issues with India, including the Kashmir dispute, that have marred economic relations between the two neighbours. But Khar sought to allay such fears, saying that the Kashmir issue had been discussed in all bilateral interactions between the two countries during the last three years.

(Read: Breakthrough in Mumbai - India, Pakistan agree to trade concessions)

“I raised the Jammu and Kashmir issue with my Indian counterpart at the ministerial meeting in New Delhi in July 2011. The joint statement of the ministerial meeting underscored the need for continued discussion on Jammu and Kashmir in a purposeful and forward-looking manner with a view to finding a peaceful solution by narrowing down divergences and building convergences,” Khar said.

She said Pakistan wanted good relations with India by sticking to its “principled stance” on Kashmir.

Published in The Express Tribune, October 13th, 2011.]]>
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			<title>Fahim terms India  visit successful</title>
			<link>https://tribune.com.pk/story/266119/fahim-terms-india-visit-successful</link>
			<comments>https://tribune.com.pk/story/266119/fahim-terms-india-visit-successful#comments</comments>
			<pubDate>Mon, 03 Oct 11 20:58:04 +0500</pubDate>
			<dc:creator>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=266119</guid>
			<description>
				<![CDATA[Delhi has agreed to support European Union duty waiver for Pakistan.]]>
			</description>
			<content:encoded>
				<![CDATA[Terming his visit to India successful, Commerce Minister Makhdoom Amin Fahim on Monday said that India had announced support for the European Union (EU) duty waiver for Pakistan in the World Trade Organisation.

Talking to reporters after his arrival at the Karachi airport from India, he expressed hope that his visit to Delhi would help boost trade between the two countries. During the visit, he said, both the sides discussed trade-related barriers and agreed to resolve them.

Replying to a question, he said both the countries had agreed to facilitate issuance of multiple business visas for one year to their business communities.

Highlighting his meeting with Indian Prime Minister Dr Manmohan Singh in New Delhi, Fahim said that Singh had reiterated his government’s resolve to see Pakistan as an economically prosperous country as it was also in the interest of India.

Indian delegation to arrive in February

A 200-member high-powered Indian trade delegation, representing various sectors of economy, will visit Pakistan in February 2012 in pursuance of the initiatives taken by both the countries at public and private sector level to increase bilateral trade, said Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Vice-President Dawood Usman Jakhura on Monday.

Indian commerce minister will lead the delegation under the umbrella of Federation of Indian Chambers of Commerce and Industry, he said while briefing media at the Federation House about the recent visit of an 80-member Pakistani trade delegation to India.

Jakhura said that both sides were confident that the present bilateral trade of $2.7 billion can be increased to $6 billion per annum in the next three years by extending maximum facilitation to trade.

Published in The Express Tribune, October 4th, 2011.]]>
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			<title>India wishes to see a prosperous Pakistan: Manmohan Singh</title>
			<link>https://tribune.com.pk/story/265832/india-wishes-to-see-a-prosperous-pakistan-manmohan-singh</link>
			<comments>https://tribune.com.pk/story/265832/india-wishes-to-see-a-prosperous-pakistan-manmohan-singh#comments</comments>
			<pubDate>Mon, 03 Oct 11 09:51:11 +0500</pubDate>
			<dc:creator>
				<![CDATA[express]]>
			</dc:creator>
			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=265832</guid>
			<description>
				<![CDATA[Singh terms trade talks with Amin Fahim 'constructive', pledges to increase trade volume.]]>
			</description>
			<content:encoded>
				<![CDATA[Indian Prime Minister Manmohan Singh on Monday said New Delhi wishes to see a stable and prosperous Pakistan.

(Read more: India, Pakistan push fragile ties with trade diplomacy)

The remarks came as the Indian premier met with Pakistani Commerce Minister Makhdoom Amin Fahim.

Fahim is on a five-day visit to India in a bid to promote trade between the two countries.

Singh termed the talks as constructive and backed efforts to increase trade volume to $6 billion in the next four years. Trade between the two currently stands at $2.7 billion.

Amin Fahim promised to lift trade barriers and claimed India will reciprocate by supporting Pakistan in the World Trade Organisation.

However, there has been no hint to whether Pakistan has assured New Delhi of granting it the Most Favoured Nation status.

Wasted potential

India and Pakistan may be home to some 1.4 billion people but bilateral trade flows are paltry.

The achievements are likely to be modest – from opening trading posts to stamping more business visas – but even small moves can improve frayed ties.

Irritants abound, trade across what is one of the world’s most heavily militarised borders is severely restricted both in the number of items that are permitted to be bought and sold, and the hours during which the customs are open for business.

Exporters are forced to route the bulk of trade via a third party such as Dubai, raising business costs, slowing deliveries and inflating prices. Business leaders on both sides bemoan the untapped potential of hundreds of millions of new customers.

Islamabad wants India to lower what it says are unfair barriers to trade, such as cumbersome approval procedures for exporters selling anything from cement to fruit and vegetables.

Another sore point is India’s continued opposition to a scheme proposed by the European Union to boost textile exports from areas of Pakistan ravaged by floods with duty waivers.

EU and Pakistani diplomats have said India could drop its veto against the scheme.

&nbsp;]]>
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			<title>A step forward</title>
			<link>https://tribune.com.pk/story/263154/a-step-forward-2</link>
			<comments>https://tribune.com.pk/story/263154/a-step-forward-2#comments</comments>
			<pubDate>Thu, 29 Sep 11 15:11:43 +0500</pubDate>
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				<![CDATA[editorial]]>
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			<description>
				<![CDATA[Regular high-level meetings and strengthening of economic ties will lay the foundation for peace.]]>
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				<![CDATA[The road to peace with India will invariably be filled with potholes so we should welcome all smooth turns. There were two unexpected bits of good news in talks between the two countries trade ministers. Amin Fahim and his counterpart Anand Sharma announced that trade between Pakistan and India would be doubled to the tune of $6 billion a year. Even more encouragingly, India is now going to drop its objection to the European Union importing Pakistani goods duty-free. This move is particularly welcome because it shows that India has put a high enough value on improving ties with Pakistan and that it is willing to make decisions that may well hurt its own textile industry.

This trade agreement is part of the peace process that was kick-started after a two-and-a-half year hiatus with Foreign Minister Hina Rabbani Khar’s visit to New Delhi this summer. Given the fractures that existed after India pinned the blame for the Mumbai attacks on Pakistan, even such measures, small though they may be, are a sign of progress. With no solution to the Kashmir issue on the horizon, it is best to put that on the back-burner for now and try to find common ground. Increased trade between the two countries will be mutually beneficial and so it is heartening that they are willing to put political differences aside to achieve this.

But completely ignoring the deep divide that separates Pakistan and India will not be possible in the long-term. Just this week, the Indian government seemed to react with barely disguised glee when the US accused Pakistan of supporting the Haqqani network. The issue of Afghanistan will loom large for the two countries as the US withdraws its troops and both seek to become the dominant player in the war-torn country. A practical solution to the Kashmir issue also seems as distant as ever — while new strains in the relationship are likely to be caused by disputes over water. This is not to say that peace in our time is impossible; simply that it will not be achieved in a single summit. Regular high-level meetings, a liberalised visa regime and further strengthening of economic ties will lay the foundation for peace. It is only then that the hard work begins.

Published in The Express Tribune, September 30th,  2011.]]>
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			<title>Visit to India will boost bilateral trade: Fahim</title>
			<link>https://tribune.com.pk/story/261050/visit-to-india-will-boost-bilateral-trade-fahim</link>
			<comments>https://tribune.com.pk/story/261050/visit-to-india-will-boost-bilateral-trade-fahim#comments</comments>
			<pubDate>Mon, 26 Sep 11 21:07:33 +0500</pubDate>
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				<![CDATA[Minister arrives in Mumbai on a five-day visit.]]>
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				<![CDATA[Senior Minister for Commerce and Trade Makhdoom Amin Fahim arrived in Mumbai on Monday on a five-day visit to India along with an 80-member delegation of leading Pakistani businessmen.


Pakistan’s High Commissioner to India Shahid Malik and Federation of Indian Chambers of Commerce and Industry (FICCI) President Harsh C Mariwala received the delegation upon its arrival.

While talking to the media at the Karachi airport before his departure, Fahim said his visit to India would boost bilateral trade between India and Pakistan.

The minister is leading the delegation of Pakistani businessmen on the invitation of Indian Commerce Minister Anand Sharma.

The delegation includes exporters of 28 items including textiles, cement, agro goods, plastics, petroleum, engineering, leather etcetera. Fahim said that the visit will be positive and will make Pak-India business relations stronger in times to come.

More than 250 business-to-business meetings have been arranged between Indian and Pakistani businessmen in Mumbai and New Delhi.

Currently, Pakistan’s exports to India stand at $300 million, while the imports from India are more than $1.5 billion. The Pakistani side is expected to highlight numerous non-tariff barriers, which are impeding bilateral trade growth during meetings with Indian officials and businessmen.

Published in The Express Tribune, September 27th, 2011. 

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			<title>Mfn status: Facility confined to papers only</title>
			<link>https://tribune.com.pk/story/202586/mfn-status-facility-confined-to-papers-only</link>
			<comments>https://tribune.com.pk/story/202586/mfn-status-facility-confined-to-papers-only#comments</comments>
			<pubDate>Mon, 04 Jul 11 22:52:45 +0500</pubDate>
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				<![CDATA[kashif.hussain]]>
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			<category><![CDATA[Pakistan]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=202586</guid>
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				<![CDATA[Speakers urge improving regional trade ties over Europe and US regions.]]>
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				<![CDATA[Negative sentiments on both sides are the biggest hurdle in the promotion of trade and economic ties between Pakistan and India, which has confined the most favoured nation status, granted by India, to documents only.


These views were expressed by speakers at a conference on “Pak-India Trade: Opportunities and Challenges”, organised by the Federation of Pakistan Chambers of Commerce and Industry and India-Pakistan Chamber of Commerce on Monday. They emphasised that instead of begging for trade privileges from Europe and US, regional trade should be promoted.

Commerce Secretary Zafar Mehmood said Pakistan enjoyed the status of most favoured nation by India only on papers while actually invisible powers were erecting barriers in trade. Pakistani traders faced difficulties in getting visas while Indian businessmen were engulfed by reservations and doubts, he said. He pointed out that despite these issues, Indian circles were condemning the halt to trade dialogue by India after Mumbai attacks.

Published in The Express Tribune, July 5th, 2011.]]>
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			<title>Pak-India : ‘Improving trade ties can help increase growth’</title>
			<link>https://tribune.com.pk/story/171490/pak-india-%e2%80%98improving-trade-ties-can-help-increase-growth%e2%80%99</link>
			<comments>https://tribune.com.pk/story/171490/pak-india-%e2%80%98improving-trade-ties-can-help-increase-growth%e2%80%99#comments</comments>
			<pubDate>Wed, 18 May 11 23:43:20 +0500</pubDate>
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				<![CDATA[express]]>
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			<category><![CDATA[Pakistan]]></category>
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			<description>
				<![CDATA[Regional trade is the key to economic progress.]]>
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				<![CDATA[Opening up trade with India will help Pakistan to increase its annual gross domestic product (GDP) by at least one to two per cent, said Pakistan Business Council (PBC) CEO Kamran Mirza.


He said this at a discussion forum organised by the Marketing Association of Pakistan (MAP) at a local hotel on Wednesday.

“Forget trade concessions with European Union (EU) because it’s likely to only benefit us with $150 million annually,” he said, referring to the trade concessions with EU after the 2010 floods. “Trade concessions from EU are peanuts if compared to the trade potential with India,” he added.

Speaking about the economic challenges being faced by Pakistan, he said Pakistan is strategically located between the Middle East and Central Asia but “we cannot cash in on this advantage until we open up regional trade”. He further pointed out that improving Pakistan’s economy would be a difficult task “until we open up our borders and improve our infrastructure”.

He welcomed the recent announcement to eventually grant most favoured nation (MFN) to India. He also appreciated the statement of PML-N chief Nawaz Sharif where he had said that Pakistan should stop taking India as its biggest enemy.

Shedding light on the National Economic Agenda (NEA), he said all the major political parties are sincere in implementing the NEA but all these parties should also show sustained political will to move forward on economic issues.

MAP President Syed Masood Hashmi, speaking on the occasion, said that the private sector of Pakistan should come forward and take matters into their hands to market the image of Pakistan. The Indian private sector had taken things into their hands years ago to market India, he cited as an example.

Published in The Express Tribune, May 19th, 2011.]]>
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			<title>India moves to improve trade with Pakistan</title>
			<link>https://tribune.com.pk/story/134166/india-moves-to-improve-trade-with-pakistan</link>
			<comments>https://tribune.com.pk/story/134166/india-moves-to-improve-trade-with-pakistan#comments</comments>
			<pubDate>Thu, 17 Mar 11 20:04:54 +0500</pubDate>
			<dc:creator>
				<![CDATA[zahid.gishkori]]>
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			<category><![CDATA[Business]]></category>
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				<![CDATA[Checkpost to be set up that will be operational from April.]]>
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				<![CDATA[In a bid to improve trade with Pakistan, which is valued at $50 million annually, India is establishing a checkpost on the Wagha border.


A Pakistani delegation will leave for Attari, India, in the coming days to meet Indian authorities on March 25 to chalk out a strategy for construction of infrastructure along border areas to facilitate traders.

According to a senior official of the Ministry of Interior, the checkpost will become operational from April. “It will be built on no man’s land at the Wagha border to boost trade between the two countries,” he informed.

Representatives of both countries will also discuss deployment of soldiers on the checkpost as well as increasing the strength of the currently deployed forces on various checkposts, said the official.

Observers believe that the establishment of a new integrated checkpost appears to be a major move from the Indian side in its bid to export goods to Afghanistan via Pakistan.

Pakistan and Afghanistan signed a historic memorandum of understanding (MoU) in 2009, which allowed Kabul to export its goods to India via Pakistan. However, Pakistan has not yet allowed its territory to be used for export of Indian goods to Afghanistan.

India will spend up to Rs2 billion on the checkpost due to its importance to Indian traders and businessmen. Officials expressed hope that establishment of the integrated checkpost will lead to promotion of trade and business between Pakistan and India.

At the meeting, which is to be attended by seven officials from various ministries, the delegation will request Delhi to remove non-tariff barriers to facilitate Pakistani businessmen who wish to export goods to Indian cities.

Currently, Pakistan imports products such as fruits, vegetables, cotton and maize from India, but is unable to export high quantities due to presence of non-tariff barriers.

According to officials, India, which exported goods worth Rs15 billion to Pakistan in the last two years, is interested in establishing more checkposts to facilitate traders of both countries.

Published in The Express Tribune, March 18th, 2011.]]>
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			<title>Smooth Pak-India trade to strengthen economies</title>
			<link>https://tribune.com.pk/story/131262/smooth-pak-india-trade-to-strengthen-economies</link>
			<comments>https://tribune.com.pk/story/131262/smooth-pak-india-trade-to-strengthen-economies#comments</comments>
			<pubDate>Fri, 11 Mar 11 19:08:43 +0500</pubDate>
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				<![CDATA[ppi]]>
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			<category><![CDATA[Business]]></category>
			<guid isPermaLink="false">https://tribune.com.pk/?p=131262</guid>
			<description>
				<![CDATA[Expert says removal of barriers could lower trade deficit.]]>
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				<![CDATA[Pakistan and India should work for uninterrupted bilateral trade to strengthen their economies and promote regional integration in South Asia, according to officials.


At a seminar organised by the Lahore Chamber of Commerce and Industry (LCCI) and Centre for Peace and Democracy on Friday, former economic adviser Salman Shah said that regional trade in South Asia was only two per cent, while Pak-India trade was not more than 0.5 per cent of gross domestic product. He said free trade with India would be beneficial for both countries and their people.

LCCI Senior Vice President Sheikh Arshad underlined that Pakistan exported goods worth $268.33 million to India and imported goods worth $1.03 billion in 2009-10, indicating that trade was in India’s favour.

LCCI Pak-India Trade Promotion Committee Convenor Aftab Vohra said that if trade was allowed directly with India, legal costs would decrease and government revenue would rise. Removal of non-tariff barriers from India could also pave the way for Pakistan to increase trade and lower trade deficit.

Published in The Express Tribune, March 12th, 2011.]]>
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			<title>Pak-India trade stuck in controversies</title>
			<link>https://tribune.com.pk/story/33563/pak-india-trade-stuck-in-controversies</link>
			<comments>https://tribune.com.pk/story/33563/pak-india-trade-stuck-in-controversies#comments</comments>
			<pubDate>Mon, 02 Aug 10 05:23:30 +0500</pubDate>
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				<![CDATA[ghazanfar.ali]]>
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				<![CDATA[The dream of full-fledged trade relations between Pakistan and India still seems distant as half-hearted efforts and hollow promises have not helped push the economic relations forward.

Though talks were held last month between foreign ministers of Pakistan and India to improve relations and take the peace process forward, they failed to bridge the trust deficit that had widened after the Mumbai attacks of November 2008. Without political reconciliation, it will be impossible to take trade ties to significant levels.

“We are standing at the same place where we were stuck six years ago despite a lot of efforts over all these years,” this was what businessmen told the Indian high commissioner to Pakistan during a visit to the Karachi Chamber of Commerce and Industry (KCCI) about a month ago.

Last week, Pakistan’s high commissioner to India came down hard on India for hampering trade between the two sides. He even went to the extent of saying that Pakistan would respond in kind if India did not dismantle its non-tariff barriers, which discourage exports from Pakistan.

Elaborating on the non-tariff barriers, businessmen say Indians create hurdles during Customs procedures, impose unclear duties and taxes and do not accept Pakistan’s quality certifications. “Even Indian importers do not know what are the duties and taxes on Pakistani products,” a businessman commented.

Political considerations

“Indian businessmen want trade but their government is reluctant mainly because of political considerations and public pressure,” former KCCI president Anjum Nisar said.

He said the Indian consulate now takes 40 days process visas of businessmen compared to 7-10 days earlier. This discourages exporters from striking deals with their Indian counterparts.

However, Nisar said the two countries have the potential to take their bilateral trade to $10 billion from the current around $2 billion. However, a lot of trade is conducted through third countries, particularly Dubai, which is not reflected in the official data.

Discussing the prospects, he said “we have potential for joint ventures in information technology and agriculture sectors. Besides we can make joint marketing of rice, particularly basmati and engineering goods.”

Quality tests

Businessmen say India does not accept quality tests of Pakistan and want the samples to be sent to their laboratories and in some cases their inspectors come to examine the quality of goods. “Delhi does not accept Pakistan’s quality certificates and wants its institutions to certify the goods. Who will send goods to India for quality tests which is a lengthy process?” asked President Federation of Pakistan Chambers of Commerce and Industry, Sultan Ahmed Chawla.

Domestic industries need machinery from India, an area where Pakistan has not made much progress. “Though Indian machinery is not of very high quality, it can still meet the needs of our industry,” commented an industrialist.

Cement exports

Cement is one of the major items where India faces a shortfall and Pakistan’s cement manufacturers have a capacity much more than domestic needs. In the last fiscal, which ended on June 30, the manufacturers exported around 11 million tons of cement to different countries, particularly to the Middle East.

“Quality assurance men come from India to assess our cement and only those factories can export which are certified by these inspectors,” said Brigadier Niazi, an official of the All Pakistan Cement Manufacturers’ Association.

He said logistics is also hampering shipments of cement as Indian railway authorities demand commission for transportation. “Despite making such illegal payments to the railway officials, they still do not facilitate the export of cement,” he claimed.

Niazi said installation of scanners on the Indian side of the border has also been pending for five years, adding absence of the screening facility also blocks export shipments.

The Indian high commissioner had promised businessmen a month ago that the scanners would be installed soon. Only time will tell what measures are taken by both sides to improve relations which will benefit not only the governments but people as well.

Published in The Express Tribune, August 2nd, 2010.]]>
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