MFN status regime: Businessmen see big market for their products in India

Textile industry may benefit the most from trade liberalization.

FAISALABAD: The business community of Faisalabad has asked the government to put on a fast track the process of granting the most-favoured nation (MFN) status to India, which they say will open new doors to trade between the two countries.

Faisalabad Chamber of Commerce and Industry President Muzammil Sultan told The Express Tribune that economic cooperation between Pakistan and India would bring peace and prosperity in the region.

“India can be a big market for Pakistani products and it is a misconception that the opening of trade will destroy the domestic industry,” he stressed.

He was of the view that the textile industry would benefit the most from liberalisation of trade as it would be able to divert expensive imports of dyes and chemicals from China and Europe to India.

“India is a big producer of dyes and chemicals. We are importing Indian chemicals from Europe and China, which increases the cost of production,” he said.

According to Sultan, unrestricted direct trade will help Pakistani importers and exporters save freight cost by exploring road links with India.

All Pakistan Textile Mills Association ex-chairman Syed Umer Nazer Shah, while welcoming the MFN status for India, said India should also dismantle non-tariff barriers to reciprocate the move.

Pakistan Textile Exporters Association Chairman Rana Arif Tauseef said the MFN decision would work in the interest of Pakistani exporters by providing the big market of India for their products. On the other hand, the government should import automobiles, motorcycles, auto parts, bicycles, petrochemicals and pharmaceutical products from India.

Tauseef pointed out that some Pakistani products were better in quality and price than Indian goods while some Indian products were better in quality and price than Pakistani goods. “In view of these advantages, the Indian and Pakistani governments should formulate comprehensive policies to improve trade,” he said.

Leading textile exporter Sheikh Mukhtar said though the MFN status would help boost bilateral trade, the policymakers should take up the issue of non-tariff barriers with their Indian counterparts to provide a level playing field.

Published in The Express Tribune, November 16^th,  2011.