Politics blocks MFN status to India

Opposition, Kashmir committee, right-wing groups against granting trade status.

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.
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