Foreign ministry spokesperson says Pakistan still going through the ‘internal processes’. ILLUSTRATION: JAMAL KHURSHID.
ISLAMABAD:
Trade normalisation between the nuclear armed-neighbours may hit a deadlock as Pakistan has not yet decided to implement its decision of granting the Most Favoured Nations (MFN) status to India.
Under the agreement, Islamabad is scheduled to abolish its negative list of tradable goods by December 31. The list contains 1,209 items that cannot be imported from India.
However, at a weekly news briefing foreign ministry spokesperson told reporters on Thursday that Pakistan was still going through the ‘internal processes’ on granting the MFN status to India.
When asked that Pakistan had already agreed to give effect to its decision on MFN by December 31, Moazzam Ali Khan did not give any time line and instead replied: “Internal processes are expected to be implemented as soon as possible.”
Pakistan’s reluctance to give specific time-frame on MFN issue appears to suggest differences with India on certain matters.
Officials here pointed out that the government’s decision in principle to grant MFN status was conditional to India’s willingness to reduce its Pakistan specific-sensitive list by 30% maintained under the South Asian Free Trade Area (SAFTA) agreement.
New Delhi agreed to implement its decision by December 31, 2012 that will eventually allow Islamabad to move ahead with granting it MFN status.
Concerns on India-Russia pact
The foreign office spokesman also voiced serious concern over a recent defence deal worth $2.9 billion signed between India and Russia.
Under the accord signed during Russian President Vladimir Putin’s visit to New Delhi earlier this week, India will buy 42 Sukhoi Su-30 fighter jets and 71 Mil Mi-17 helicopters, according to the media.
Khan said Pakistan opposed any move in the region that ‘leads to nuclear and conventional arms race.’
Khar to visit Saudi Arabia
The spokesman said Foreign Minister Hina Rabbani Khar will travel to Riyadh on January 1 at the invitation of her Saudi counterpart.
She is visiting the Kingdom amid rapidly changing regional developments including unrest in Syria, and the Afghan reconciliation process.
Saudi’s invitation is also being seen as an attempt by Pakistan’s long term Arab ally to stay away from Iran gas pipeline.
However, the spokesman dispelled the impression insisting that Pakistan would not abandon the project. “Pakistan is an energy deficient country and we consider the Iran pipeline as vital to meet our energy needs,” Khan emphasised.
Published in The Express Tribune, December 28th, 2012.
COMMENTS (17)
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@Hasan: Since the Indian system of Parliamentary Democracy, Secularism, independence of Judiciary and Media, policy of Non Alignment and model of Economic Growth are such spectacular failures the World has decided to remodel itself keeping Pakistan as its ideal role model. Happy !
I am seriously glad. For a change the discussion here is quite healthy and we Indian and Pakistani are not mud slinging against each other. Please carry on this constructive discussion. ...... :)
Good move by Islamabad - stall this pointless trade deal until it is shown for the farce that it is.
Hindustan is just one of Pakistan's many neighbours, and frankly it is nothing more than a malignant presence - not just to us, but to the region at large. The events of the past week alone should show us that its social indicators are an embarrassment to the global community, and frankly Hindustanis need to start looking at their own crippling self-inflicted grievances without having the liberty to point fingers across the border.
Ideally we should cut all contact across the eastern border and leave these fools to descend into caste politics and Maoist separatism by themselves.
Hasan
@Hasan Mehmood: NTF is not Pakistan specific. It applies to all countries.
in 2-3 years max pakistan will be ruled by Taliban..so no use talking with the present pak Govt.
Pakistan has too many problems now. Afghanistan, US/NATO withdrawing forces, Taliban terrorism, Baluchistan, Karachi, landing of Qadri, launching of new parties by Hamid Gul and his son, elections, Army trying to grab power indirectly with the help of judiciary, etc. So, it would be prudent for India to leave Pakistan alone till Pakistan’s new government is formed.
@Hasan Mehmood: Hey Hasan, please read the reports of your own economists who strongly support trade with india.. A simple principle to understand in this context is that whenever you trade with bigger partner the smaller economies gets more benefit in the process... Also you can avoid the illegal trade coming via middle east into Pak and save foreign exchange and consumers will get benefitted..
Political leader love the phrases like TRADE NOT AID. But when rubber hits the road and trade opportunities arrive they have cold feet. All countries that went through free trade agreements had their own sector specific anxiety but once the agreements were signed people could see the benefits. Practical way is to declare the list and hold back few items and take additional 90 days to review it. Why hold the whole list hostage.
@Hasan Mehmood:Your comment is valid but it has to do with the lack of institutional capacities. Cement from Pakistan and Sugar from India are prime example. The reasons are that the standards are not identical. Along with trade those standards need to be aligned. Otherwise both countries will have to get a third party certification to meet the quality control issues. Solution is to put the quality control inspectors in the other country example allow Indian quality control inspector in cement plant of Pakistan and Pakistani inspector in sugar mill of India. Third party certification is best but it consumes time money and makes the third party rich. Example US food inspectors are in the meat plant of countries that export meat to UUS. Those inspector resolve issue at local level with a threat that if you do not resolve we will prevent the shipment. If these inspectors work honestly sytem works flawless and businessmen get their moneys worth.
I agree in principle with most of the Indian commentators and am in favour of granting MFN status to INDIA. But I am disappointed that no one has pointed out or written about Non Tarrif Barriers which have not allowed any significant advantage to Pakistani exporters in spite of being granted MFN status a long time back. As an example refer to the time it took Pakistani cement to gain entry due to bureaucratic delays and technicalities.
And remember even if all Non Tarrif Barriers are removed, balance of payments will always be in favor of INDIA in accordance with relative size of economies. So my dear Indian friends rise above petty nationalism for the sake of intellectual credibility.
I had commented just recently on another news that whenever you see the word "Nuclear Armed" the statement originated from ISPR and if you read "Nuclear power" it is from the civilian government.
Pakistan army is unhappy with the recent $2.9 billion agreement with Russia to purchase arms. This items in this purchase are mainly Pakistan oriented. So, this is the reaction from the Army.
Pakistan has too many problems now. Afghanistan, US/NATO withdrawing forces, Taliban terrorism, Baluchistan, Karachi, landing of Qadri, launching of new parties by Hamid Gul and his son, elections, Army trying to grab power indirectly with the help of judiciary, etc. So, it would be prudent for India to leave Pakistan alone till Pakistan's new government is formed. Trade with Pakistan is not going to pick up as Pakistan neither has an exportable surplus with its industries operating at all time low capacity. Nor is Pakistan capable of importing much due to shortage of foreign currency. However, India should keep pressure on Pakistan to act on the Mumbai terror attack suspects. There should be no relaxation on this. Otherwise forces in Pakistan shall try to conduct more terror attacks on India. Indian Army should be vigilant and ready. Forget trade and concentrate on terror.
And India shoudl suspend Visa normalisation making it subject to "internal process" till Pakistan relents!
Why should India allow special treeatment to visitors from a failed nation lining up at its gate when that country isn't ready to give it its due right as per WTO and accord just the basic rightful status as MFN?
Pakistan is dilly dallying after having agreed to give India MFN status, and enjoying the benefits of the same for over a decade. One can keep on shifting the goal post and keep issuing a million clarifications for the same but the split in the national thinking is evident -- one section is wedded to the use of terrorism as an instrument of policy and another section wants peace but does not want to confront the lathi. It would be a very naive person who cannot separate spin from substance.
Combine this with the zero movement in 26/11 case, Pakistan has, sadly, reduced the current reengagement to a farce. India would do better to abandon this process, write it off the books as a lost cause, and focus on improving it's relations with ASEAN countries. I think the majority of Indians such as myself feel the only pragmatic policy with respect to Pakistan is to sandbox ourself against it, and erect a 10-foot wall (both physical and metaphorical) between our borders. Let them go their own way, and let us go our own way and live in mutually benign indifference.
Back to square one!
Sign Agreements and then Retract or Delay......There is No One in Control in Pakistan. No Use Talking With Anyone..... That is Why Indian PM's Visit Will Be Useless.
Having dreams of Mughal era islamic rule over India, flying high with its Nukes and terror 'strategic assets', Pakistan should descend down to the grounds of realities of 21st century and make peace with India by way of trade relations etc.. This will be in Pakistan's own long term interests though India will also benefit from it.
Useless nuclear toys are the main reason for Pakistan descending into the abyss, its the reason Pakistani think tanks feels as if having a non-existent superiority and makes them punch above their weight. By all global parameters/indication, Pakistan has to part with India to survive as a nation otherwise its economy will go for a six. As for as India is concerned, Pakistan is just a irritant and no way linked to its economic growth.