Petroleum preferences

As talks get underway between the commerce secretaries of Pakistan and India in Islamabad, the petroleum ministry has made a suggestion that would not only render the talks truly useful but also benefit many people in the country. The ministry has proposed that petroleum products be imported from India and cement and chemicals exported to it. A ‘most-favoured nation’ status for India has been proposed to facilitate this exchange. Previously, Pakistan’s commerce secretary, Zafar Mehmood, ahead of the arrival in the country of his Indian counterpart Rahul Khullar, had also mentioned an Indian offer to sell to Pakistan the power it urgently needs. This matter, too, is likely to come up during the two-day discussions.

The proposal by the petroleum ministry makes a great deal of sense and could benefit both countries. Indeed, the ministry believes Pakistan could meet its total diesel need of 4.4 million tons by bringing it across by road from India. Significantly, diesel currently costs Rs92.90 in Pakistan and Rs75.56 in India. Petrol prices are also significantly lower. The advantages of this to the people of our country are quite obvious. Indeed, it is nothing less than a tragedy that while diesel and furnace oil are on the list of items that can be imported from India, this has not happened due to political factors. The physical proximity of both countries, of course, makes it easy — and cheap — to bring across items by road or ship.

The provision by the ministry that India facilitate the export of cement and chemicals from Pakistan in exchange seems fair. There is much to be gained by developing trade ties. Concrete evidence of gains could also help change mindsets and as such lessen the influence of the hawks who hold back the building of closer relations. The petroleum ministry proposal lays down the advantages in just one area. There are certainly many more in other spheres. For the sake of the people of both countries these, too, need to be identified and ways found to take advantage of them by building better trade links.

Published in The Express Tribune, April 28^th, 2011.