KCCI President Abdullah Zaki and SGCCI President Kamlesh Yagnik signed a memorandum of understanding (MoU) for strengthening cooperation between the two chambers. PHOTO: NNI
President of the Southern Gujarat Chamber of Commerce and Industry (SGCCI) India, Kamlesh Yagnik, has said it is possible to enhance the existing $2 billion trade volume to $25 billion in the next 10 years through collective efforts of business communities of Pakistan and India.
“I am confident it can be achieved through collective efforts of the business communities and governments of both countries,” Yagnik said during a visit to the head office of the Karachi Chamber of Commerce and Industry (KCCI).
He added the two countries were doing trade through three channels – direct trade, circular trade and informal trade. The direct trade includes legal channels and other formal ways while circular trade involves Indian export products available in other countries which are imported by Pakistan.
He said the sizeable informal trade between Pakistan and India required serious attention from both governments as it affected those who traded legally and paid all taxes.
“Collective efforts must be made by the governments and business communities to reduce this informal trade, which, if addressed, will certainly pave the way for improved trade relations, besides ensuring substantial economic growth,” Yagnik said.
Trade between the neighbours should be maximised and the business communities should unite to work more closely with each other, he suggested.
Highlighting some obstacles to liberal trade, Yagnik assured the businessmen that his association would prepare an elaborate report and send it to the authorities in India for a review.
Commenting on India’s most-favoured nation (MFN) status, he said “it will help increase formal trade and result in taking the existing trade volume to new highs.”
He also suggested that instead of trading in dollars, a currency swap agreement should be signed by both governments that would prove favourable for them.
KCCI President Abdullah Zaki and SGCCI President Kamlesh Yagnik signed a memorandum of understanding (MoU) for strengthening cooperation between the two chambers.
Yagnik said the MoU would pave the way for solid relations between Karachi and Gujarat. Former KCCI president Siraj Kassam Teli said the Karachi Chamber had been trying and would continue to strive to improve trade relations between India and Pakistan.
“Instead of leaving the task to the governments and bureaucracies, the business communities of both countries must come forward and lead the way by enhancing trade and business relations,” said Teli.
“Enhanced trade with India will trigger competition in this region, resulting in further improvement in the quality of Pakistani products and services so that they could efficiently compete with their Indian counterparts,” he said.
Additionally, Pakistan would get an opportunity to penetrate the huge Indian market representing a population of 1.3 billion.
Commenting on India’s MFN status, Teli said it was high time to grant MFN status to India but unfortunately it was being delayed due to some bureaucratic hurdles on both sides.
KCCI President Zaki urged both governments to ease visa restrictions, improve roads and railway infrastructure, tackle issues of non-tariff barriers, set up investment and banking channels and open some crossing points for trade.
He said economic relations between the two countries were stabilising and growing at a faster pace but more needed to be done to build confidence.
Published in The Express Tribune, November 28th, 2013.
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@ET Yes, it can be increased to 25 Bn US $ but not in 10 years, rather 5 years, however trade deficit of Pakistan shall be 24 Bn US$. @Madhu China is not destabilizing Taiwan, whereas India is helping Baloch insurgents. Issuance of Indian passport to Bramdakh Bughti is an open secret and is Indians openly admits that.
If every businessman is actually keen to do business with India then why the hold up on MFN? Either statement is wrong or perhaps more evidence that military controls foreign policy and they don't care what the business community thinks.
The first step towards normalising trade is to teach Pakistanis the meaning of "Most Favored Nation" as per the WTO
Gujurati businessmen have lowered their standards . Target rich western countries , leave alone terrorists.
dear sirs, China and taiwan - are embroiled in worse political problems then india and china. China has managed to keep taiwan out of the UN by claiming it entirely. at least india pakistan do not have such issues. the kashmir imbroglio can be solved if the leaders decide to do some sincere negotiations. China and taiwan have annual trade of over 100 billion dollars. India pakistan can easily exceed this 25 billion dollars target within a few years not 10 years. As for MFN- you should not think it is most favoured nation. All countries have this mutual facility. there is nothing most favoured about it. If nawaz sharif wants it - he can guide pak-indo trade to very high levels for mutual benefits. There should be visas and trade freedom- and you will see millions of tourists going across the border. Yes, india is worried about terrorists such as those who regularly create trouble.Even that can be controlled by both the countries if they so wish. So let us hope wisdom will prevail. And pakistan india will have sensible relations between them soon.