ISLAMABAD: Pakistan’s top diplomatic authorities have decided to put on the backburner a proposal to grant India the most favoured nation (MFN) trade status after a hostile reaction from political parties. Diplomats will also address the concerns of the security establishment regarding the potential side-effects of the status.
“We should not expect an immediate announcement…the final decision might get delayed,” a senior official at the foreign ministry said on Sunday. “But the proposal is very much there…it is under the international trade agreement and there is no way we can shy away from it.”
Foreign Minister Hina Rabbani Khan earlier this month informed the National Assembly that the government had in principle decided to give India the MFN status and a formal announcement was likely soon.
Islamabad first agreed to give this concession, which is primarily related to trade, to New Delhi during a visit by Commerce Minister Makhdoom Amin Fahim to India earlier in the year.
But mainstream political parties, including the opposition Pakistan Muslim League-Nawaz (PML-N), a bipartisan parliamentary committee on Kashmir and rightwing pro-establishment groups opposed the decision in unison.
“This is what has forced the authorities to delay the final decision,” the official said, requesting his name not be mentioned as he is not permitted to talk to the media.
When contacted, foreign office spokesperson Tehmina Janjua neither confirmed nor denied that the decision could take longer than expected. “I would not say anything…you better talk to the commerce ministry,” she added.
Commerce secretary talks between the two countries are scheduled to be held in New Delhi next month.
A military official said security agencies would definitely want the government to take them into confidence on some of the aspects of the MFN status to India.
“What will be the monitoring mechanism for the consignments of Indian goods transported into Pakistan? We would like to know this and other similar aspects of it,” said the official.
Pakistan’s powerful military has a history of opposing any deal that allows India to export its products into Pakistani markets. “We are not against trade. It takes place through Karachi as well…the monitoring mechanism is important for us,” the official added.
It is not known whether the decision had the backing of the security establishment, which claims most threats to the country’s security and territorial integrity emanate from the east.
Defence analyst and former head of country’s premier spy agency Lt. Gen. (retd) Asad Durrani, however, said he did not see any reason for security agencies to oppose a move which was mandatory under the international trade regime.
The PML-N’s Chaudhry Nisar Ali Khan told the media in Islamabad a couple of weeks ago that his party would oppose the move if the government decides to go ahead with the decision. “I tell you it is unrealistic to think that India will give up its hard line on Kashmir,” said Nisar.
“Trade with India should not be at the cost of Kashmir,” the opposition leader added. “We should not expect New Delhi to alter its position because Musharraf (former military ruler) gave them several concessions but none worked.”
Published in The Express Tribune, October 31st, 2011.
COMMENTS (25)
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@Ghaznavi: "All cosmetics; MFN does not mean anything with all the no tariff barriers in place. If India is serious in increasing trade with Pakistan, India needs to eliminate those "
The so called non-trade barriers are really quality standards that must be met to export to India. These standards are not unique to Pakistan but are across the board. China has not trouble meeting those and India China trade is $60 billion. In fact India's trade is rapidly growing with so many other nations despite these very same non-trade barriers.
Anyway, I am a little relieved because under the guise of trade liberalisation the government of India was planning to relax visa norms for Pakistanis. Now that will not happen. Thank God.
Not granting the MFN to India is idiotic. Why deprive the people of Pakistan of their legitimate interests? If we morally support Kashmiris and raise voice for them on International forums then more integration with India and the rest of the world will only strengthen our position.
But, alas, that's not our true position. Our foreign policy has been hijacked by our military and their proxies. These guys resist all attempts of normalizing relationships with India. They are responsible for causing bloodshed not only in India and Pakistan but have been of great dis-service to Pakistan and its image across the world.
All cosmetics; MFN does not mean anything with all the no tariff barriers in place. If India is serious in increasing trade with Pakistan, India needs to eliminate those - in the mean time, we give India an award of Most Favoured Neighbour, here now have MFN!!
Enjoy :-)
Maybe this is in return for granting Pak MFN status AND supporting their UNSC seat? From news reports it looked like India was their major supporter in UNSC seat effort last week.
Well, no good deed goes unpunished. There goes the neighborhood! (well it already did!)
Jeez even when the topic is on Trade and commerce it gets into a usual India Pak slugfest. God knows what Hafiz Saeed or Colonel Purohit got to do with granting MFN to India.
do u know why indian leadership is quiet on this issue?they dont want to interfere in the process where pakistan destroys itself;they will much prefer that pakistan fails to implement the international law, so other countries can also learn about pakistan's policies, and most likely want to revoke the MFN to pakistan.They will have a solid reason for doing so.
It's really bad news. I am getting so tired of our politicians looking out for their political interests only. Just to gain a few political votes, they have deprived our country of economic success and respect in the world from last several decades, and they are doing the same thing again.. Granting MFN status to India helps us more, than India, and it will go a long way in uplifting our economy, which is in dire straits.
“I tell you it is unrealistic to think that India will give up its hard line on Kashmir,” said Nisar.
@Jan Sher Khan:
Kashmir has been Indian land for 6000 years. The "muslim" people in Kashmir are not indigenous people of Kashmir. They are migrants from Central Asia who followed the Mughals. They are genetically, culturally and linguistically different from people in the Indian subcontinent. Hence, they cannot have any claim over Kashmir. Thus, the question of them having a say in the fate of Kashmir does not arise. India has been very graceful that they did not chase them out of Kashmir after the mughal rule ended. It may well be time to do it now!!!!
I wonder if not providing the MFN status is going to resolve any of the issues between the two countries. By delaying it, we are only missing out on an opportunity to show goodwill towards India.
I see this topic as a small step to a destination for which many others are required. In the last 60 years our relationship with India has been mutual destructive. Our thinking is that if my losses are less than India's its satisfactory. How good if we can start thinking in terms that if I gain, I am still better off, even if India gains more.
Lastly, in the comments to this topic, our politicians have been rubished for their anti-Indian stand. Pakistan's foreign policy is not with its civilian representatives. The language our politicians speak is most often not their own. And Imran Khan never said any thing anti-Indian. He merely pointed out that at the misunderstanding of Indian politicians that the issue of Kashmir can be resolved by solely military means, to which I totally agree.
This is a case of sawing off the branch on which you are seated and then whilst falling also shooting yourself in the foot. That is what happens when you live not in the real world but a world of fantasy laced with conspiracy theories and bravado.
Did India ever ask for this MFN status?!!!
India is foolish to continue to grant MFN status to Pakistan, in desire of better relations. India is foolish, if it allows EU to grant textile quota concessions to Pakistan at the cost of Indian textile exports, in desire of civilized relations with Pakistan. India should just ignore and isolate Pakistan and avoid any contact/engagement.
Pakistan is still not doing anything against perpetrators of Mumbai Terror attacks. Hafeez Sayid is still roaming free even after UNSC banned Jamaat Ul Dawah. Indian government should concentrate more on this topic instead of doing trade with Pakistan. Meagre trade of $2 Billion with Pakistan won't add any extra fuel to India's economic boom who is currently doing trade of $600+ world over.
@Jan Sher Khan: u r doing OK without India. hahaha.
Sir your economy is into shatters
haha. We werent even expecting it as we knew your ground reality. No govt in Pakistan can survive without being Anti Indian. In our country during election campaigning the Politicians show us of dreams about domestic issues. In pakistan the leaders have to give anti india speech . They have to give staND ABT KASHMIR. Today Imran Khan also brought kashmir issue at minare pakistan. This can lead to his party winning power. But being anti india can not lead to progressive pakistan.
@Jan Sher Khan: This only proves there is no coherent policy in Pakistan. Pakistan's minister comes here and wastes everybody's time and money. Anyway who cares!
Who cares, Pakistan want to trade with India or don't want to trade with India its their own economic issue. India is already having $600billion+ trade every year and GDP reaching $2 Trillion mark next year. $1-2 billion trade volume with Pakistan are just peanuts and also Iran is ready to give transit route to Central Asia via Chabahar Port. I wish India government should revoke the "Most favored Nation" it has given to Pakistan because trade relation should be based on equality basis.
Another example Pakistan is hostile environment for business investment. MFN is part of WTO membership requirement. May be India should play hard ball and file petition for suspending Pakistan from WTO till it abides by its basic rules. Pakistan politician rather beg for aid than earn money through trade.
The charade is over -- no Pakistani govt or leader, military or civil, can survive after granting MFN status to India. This will of course mean that India will continue to block the EU concessions to Pakistan, and Pakistan's moribund economy continues its sluggish growth rate. Hooray for Pakistan!
Who cares? Its Pakistan's problem.
India is least bothered to have MFN status from Pakistan.
Very good. India should not be allowed MFN status until It does not stop human rights violation in Indian Occupied Kahsmir and Withdraa 700,000 Army. Not even talk of any trade with India until it does these two things first. We are doing OK even without them. Plus there is a great danger that Indian State Terrorists such as Colinel Prohit will also come to Pakistan and will disturb law & Order
Well Pakistan authorities debating this as if this is akin to Free Trade Agreement (FTA). Its not. Its only giving India equal footing as with other countries in Pakistan. Trade policy in Pakistan presently is discriminatory against India. All India is asking is to treat us equal to other countries. All the hoopla surrounding this is rather amusing. Considering you have FTA with China, this makes it all the more amusing.
Anyways, if Pakistan backtracks then India have to rescind its promise of EU trade deal and as well revert MFN status to Pakistan. No point in furnishing favors from our end when the other side can't reciprocate.