India, which has official bilateral trade of over $2 billion with Pakistan, granted it MFN status in 1996.
"India has already started addressing a few real barriers like licensing problems faced by cement exporters from Pakistan, but little can be done about perceived barriers such as high quality standards, and these should not be linked to MFN," an Indian government official told Economic Times newspaper on Monday.
In April, Commerce Secretaries of the two countries had set October as deadline for granting MFN status to India. But last month, Pakistan's Commerce Minister Makhdoom Mohammad Amin Fahim refrained from announcing it during his India visit because demands of links to non-tariff barriers.
An MFN status will open the doors for all Indian goods, currently only about 1,934 goods are allowed based on a positive list. Because of trade restrictions, a lot of Indian exports to Pakistan are routed through a third country, such as Dubai, raising costs. Trade through third countries is also estimated at $2 billion.
The opening of a second gate at the Wagah- Attari border and an increase in trade hours will also help in customs clearance.
India has also introduced some changes in policy, the Bureau of Indian Standard agreed to increase the licence period of Pakistani cement suppliers two years from one, the same as it does to domestic manufacturers.
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Pakistan should 1) Refuse to give MFN status to India 2) Refuse transit trade agreement 3) Refuse easing visa restrictions for Indians 4) Refuse supplying oil to India via future pipeline unless & until India, 1) Removes its army from Occupied Kashmir 2) Lets Kashmiris decide their own fate through plebiscite 3) Removes its malicious presence from Afghanistan & cross-border interference 4) Lifts non-tariff barriers
@Ishant: ya i remember!!at that time most of the people in subcontinent were Hindu's,budhists.and eventually inspired by Islam these people converted,leaving behind the cast system,where people of low cast could not even enter your temples,and were punished by Brahmans for touching his dog.do you remember ishant?that is why we have 500+million Muslims in subcontinent.
NOTE : I feel we should not take MFN status from Pakistan. May be remove MFN status to pakistan.
May be EVEN close the borders for trade.... wink.....
Indus treaty and MFN are most delicate things for INDIANS like me because we want it break down :p
"India’s MFN to Pakistan did not cover textiles, which is Pakistan’s biggest and most important export, virtually the backbone of Pakistan’s economy. For that reason India’s MFN was little more than a smoke screen."-----
@Moria : Are you Indian ? I am ..... If you pakitani, then u have no idea of ur economy.
BOSS : India not doing anything for its[indian] textile.... is itself a big give up to pakistan. If India subsidies textile ; or help bangladesh then pakistan really have challenges...
People in GUJRAT literally HATE govt for NOT DOING anything to help textiles.
Please Pakistanis : BE SMART for heaven shake. Do not do anything that makes us justify doing textiles...... some subsdidy here and there and Pakistan textile will have tough time
Why is India doing all this? Let's wait for 3 months for pak to make up it's mind. After that if pak still vacillates - revoke the MFN. This is business no emotions only sheer professionalism and mutual benefits should dictate benefits
India's MFN to Pakistan did not cover textiles, which is Pakistan's biggest and most important export, virtually the backbone of Pakistan's economy. For that reason India's MFN was little more than a smoke screen.
15 years since India granted Pakistan MFN. Pakistan is yet to do the same. How unfair!
Pakistan continues to violate the trade treaties on a daily basis.
@hussain shah- Roflol...700 years of what rule????....
...by that logic, have you forgot about the thousands of years of Hindu/Buddhist rule on what today is Pakistan??????
@Krishna
Do you even understand what they are talking about? Or is it just rants.
@ Krishna
bow down? dream on! Hilary went disappointed. What is India as compared to the mighty US?
We Indians are thankless. Instead of being thankful for the MFN, we are whining. You Pakistanis will bow down to our demands sooner or later.