Business community welcomes MFN status to India

However, they do have reservations about non-tariff barriers created by Delhi.

KARACHI:

Industrialists and business community have reacted positively to the cabinet’s decision to grant India the most favoured nation (MFN) status, though they did have some reservations.

The business community underlined the difficulties being faced by Pakistani exporters in face of non-tariff barriers in India which must be removed to improve trade between the two countries. Industrialists said the MFN decision will help increase trade between Pakistan and India especially after the removal of obstacles like non-tariff barriers and visa restrictions. They said the opening up of trade with neighbouring India will reduce Pakistan’s dependence on European and American markets and Pakistan can focus on emerging regional markets including China.

Karachi Chamber of Commerce and Industry (KCCI) President Mian Abrar Ahmed said the decision would favour Pakistan more because “we will get a big market of over 1 billion while we are giving them a relatively smaller market of 180 million people”.

“Pakistan is blessed that it has two fastest growing economies of the world as its neighbours where the developed countries are coming to invest,” he said, adding, “We should make the most of this opportunity and try to grab more market share in India like other countries of the world.”

Former president of Sarhad Chamber of Commerce and Industry Sharafat Ali Mubarak said, “Trade would only benefit both countries when both have equal tariff structures that do not favour any single country”.

“Pakistan can import auto parts from India that we import from Japan and other Asian countries at present. In addition, we can also take help of Indian expertise in IT and technology,” he said, adding that ‘but even after all this a lot depends on how sincere both countries are to help each other in trade and commerce’.

“Pakistan should also make sure that we do not turn into a dumping ground of Indian goods. We need to develop our industry where we have edge over India,” he cautioned.

Korangi Association of Trade and Industry Chairman Ehteshamuddin said that “our rupee is half of Indian rupee against the US dollar, which is an edge for our exporters to grab a large market share in the big Indian market”.

“Instead of depending on our old markets like Europe and the United States, Pakistani exporters should look towards Asian economies especially India and China,” he said. “If both countries successfully remove all the irritants for trade, I think it will change much as far as trade is concerned,” he added.

SITE Association of Industry Chairman Muhammad Irfan Motan said that Pakistan should be extra cautious in giving trade concessions to India at this point in time. “Like Afghan Transit Trade Agreement, we need to look whether the trade concessions to India are hitting our industry or not,” he said.  “I have no doubt that Pakistan can speedily increase its exports to India if our exporter gets level playing field in tariff structures with India,” he said, adding that “because India is a big market, we can definitely take advantage of this reality”. 

Published in The Express Tribune, November 3^rd, 2011.