Most favoured nation: Pakistan likely to grant India MFN status

Commerce Minister expected to visit New Delhi in mid-September.

Ppi August 24, 2011

NEW DEHLI: Building upon last month’s positive talks, the commerce ministers of India and Pakistan are set to hold discussions in the Indian capital in September that can lead to Islamabad giving New Delhi the long overdue Most Favoured Nation (MFN) status.

Commerce Minister Makhdoom Amin Fahim is expected to visit New Delhi in mid-September for talks with his Indian counterpart Anand Sharma.

Sources told India Asian News Service (IANS) on Wednesday that ahead of Fahim’s visit, the joint secretaries (commerce) of India and Pakistan would hold a meeting in the Indian capital. Pakistan’s Joint Secretary (Commerce) Rubina Ather is in New Delhi now, leading a six-member delegation which consists of trade officials.

Besides the likelihood of India getting the MFN status, the two sides will also discuss the possibility of India allowing Pakistan foreign direct investment, the sources said. The MFN status for India will be critical in expanding the untapped trade potential between the two countries, they said.

India-Pakistan trade was $1.85 billion in 2009-10. Indian exports accounted for $1.78 billion.

Published in The Express Tribune, August 25th,  2011.


FARHAN | 12 years ago | Reply

Give MFN to India right now. We need trade. Pakistan Business Council (PBC), a group of over 35 leading multinationals have asked Pakistan govt to trade with India which will increase our annual GDP growth rate from 1 to 2 per cent at least.

Our present GDP growth is less than 4 per cent, imagine going with over 8 per cent GDP growth like India, we both countries will benefit a lot from this trade.

How: Please see:

1) Both countries reduce their import costs as they import from Europe and USA. 2) Learn from each others experiences in industrial and services sectors. 3) Pakistan can export to Bangladesh, Thailand and beyond, India can gain much needed access to Central Asia. 4) Pakistan can import cheap machinery from India and import cheap raw material from indian Pharmaceutical sector. 5) India can gain access to Iran, Middle East and Europe through road and sea links.

In short, both would benefit enormously and both economies get a boost that ultimately help our people.

Raza | 12 years ago | Reply

Trade between Pakistan and India could start a new era of good political relation. Land and country are usually spelled in political and military terms; although, there are other forms of nationhood for example, people free movement across the border and trade as in the case of EU. India has achieved maturity in industrial life cycle while Pakistan is still struggling for its own. Trade and business relation might benefit India for shorter period, but in long run it would be Pakistan reaping its benefit. Rather Pakistan and India should start joint industrial ventures with more trades to Central Asian Nations and Afghanistan. Their is a need of cooperation between the two countries rather competition.

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