Indian High Commissioner to Pakistan TCA Raghavan speaks at a session in Karachi on Thursday. PHOTO: MOHAMMAD NOMAN/EXPRESS
“India and Pakistan will sign an agreement next month to open bank branches in Mumbai and Karachi. The much-awaited banking links will give a boost to trade and commerce,” Raghavan said.
He was speaking to the business community at the head office of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on Thursday.
“It is good that bilateral trade between India and Pakistan has grown considerably in the last few years but it is still far behind its true potential,” he added.
The high commissioner said his country wants to provide all possible support to the business community of Pakistan so that the two neighbours can increase bilateral trade according to their potential.
Speaking on India-China trade, the high commissioner said the two countries are rapidly improving their trade which is now touching $100 billion.
Concerning visa issues, he said India has eased its visa conditions and it is processing more multiple-entry visas for Pakistani businessmen. “However, India has not yet decided on opening an Indian consulate in Karachi, which is one of the core demands of the business community of Karachi,” he added.
FPCCI President Zubair Ahmed Malik said India and Pakistan should increase regional trade and the two countries need to put all the major issues behind trade cooperation.
Currently, bilateral trade is heavily in India’s favour, which has to change if the two countries want to see more trade in the future, he added.
According to the figures of the Directorate General of Commercial Intelligence and Statistics, Ministry of Commerce and Industry, India, bilateral trade recorded a net increase of $410 million from April 2012 to March 2013, up 20%. Pakistan’s exports to India grew 28% while Indian exports to Pakistan increased 19% during this period.
This recent jump in exports is encouraging for Pakistan but it is still far behind the potential.
Official trade between India and Pakistan has crossed $2.6 billion. India’s exports to Pakistan are $2.1 billion while Pakistan’s exports to India are just $500 million.
Both countries have repeatedly pledged to remove non-tarrif barriers which are hampering trade. Pakistan has so far given Indian the Most Favoured Nation status and pledged to work towards freer trade.
Published in The Express Tribune, February 7th, 2014.
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COMMENTS (14)
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@Ravi: I wish u all the good luck! May our sub-continent blossoms and be the Europe and US of east!
@Muslim Leaguer: Regret that one did indeed erred and got the wrong information. Trust the following will meet your approbation : . http://sbp.org.pk/publications/statements/2014/10-Jan-2014-issue.pdf . Total Assets 2,310,012,053,000 = Pak Rupees 2,310.012053000 Billion @Pak Rupees 105 = US$ One Equates to about USD 22 Billion . For State Bank of India : . https://www.sbi.co.in/user.htm?action=viewsection_opennew2&lang=0&id=0,438,442 The Total Assets of the State Bank of India is only US$ 288.53 Billion . Bigger is most definitely NOT NECESSARILY BETTER and in this respect one must not compare Apples to Water Melons. The State Bank of Pakistan, being basically a CENTRAL BANK, must be compared to the Reserve Bank of India. In contrasts The State Bank of India not only Provides General Banking Functions (its main function) but also is AN AGENT OF The Reserve Bank of India in places where the RBI does not have any Branches - The RBI has only 27 Branches in India. As such the size of the SBI is huge due to its multiple functions. . With the "Conservative and Careful" Policies (Not to be confused with the International Investment Banks) of the Reserve Bank of India the Indian Banks weathered the International Financial Crisis much better as the International Investment Banks carried out - what I would term - Legal "Frauds" where the Banks were fined Large amounts but all the "Rinky Dinkers" got away! . Cheers
@Nida Alvi: . "SBI has a capital of USD109 Million" --- Yes, share capital of SBI is USD 109 million but in banking parlance its reserves and surpluses ( accumulated profit) also is a part of its capital means SBI's own fund ( Net worth) is USD 17 Billion.
@ Naresh Dude, just to correct you, the report/link that you posted pertains to BSC (Banking Services Corporation) which is a subsidiary of the State Bank of Pakistan. If you have a little bit of understanding of Finance, and not copy/paste, you should know that a bank's core function is lending. Whereas the link that you have posted has "Employee loans and advances". How can a bank survive only on employee loans & advances?? Then it has "Balances with State Bank of Pakistan". How can a bank keep balances with itself and records them as assets??? If you are interested in learning about the SBP you should read sbp.org.pk
The recent banking crisis in the world has proven that "bigger is not necessarily better" and we have seen so many large banks failing in the world. Expanding the size without the knowledge of underlying financial dynamics leads to bubble bursts... It is always the quality of assets rather than notional value of assets that really matters in the financial services industry.. Long Live Pakistan!
@Nida Alvi: The deposits with SBI add up to US $ +300 while it's market cap is ₹ +1100 billion. Just google SBI and check the facts.
@Mohd tarekh : @Nida Alvi : . https://www.sbi.co.in/user.htm?action=viewsection_opennew2&lang=0&id=0,438,442
The Total Assets of the State Bank of India is only US$ 288.53 Billion . http://www.sbp.org.pk/reports/annual/FS/FY12/SBP-BSC-Finacial-Statements-FY-2012-13.pdf . Total Assets of State Bank of Pakistan Pak Rs. 20,780,618,000 i.e. Pak Rs. 20.780818 Billion . @ US$ = PKR 105.3847 Equates to US$ 197 Million . The Capital of State Bank of Pakistan is Pak Rs. 1,000,000.000 Pak Rs. One Billion . @ US$ = PKR 105.3847 Equates to US$ 9.489043 Million Cheers
@Nida Alvi:
Hahha... You don't have a financial system in place actually.. your govt and the bank are borrowing from IMF to repay the interests of earlier loans. You have not paid a penny of the principle amount as yet. So please donot compare india vs pakistani financial systems. Also we significantly export, the only dampner is the petroleum we have to import from out side. If some day we will be able to cut down heavily on petro imports (and i assure this would happen since i am in the industry and the investment by GOI and private entities is enormous) then we will be able to bridge the budget deficit we have right now.
Pakistan doesnot have anything to export apart from aaloo, tamatar and some clothing and apparels.
Also the next push will be in manufacturing where china will be replaced by india in certain sectors, since the west has come a full circle with china's bullying and OEM countries like japan are looking towards india for a manufacturing base away from china. Just wait for a few months and the policy picture will be clear just as the next govt forms in india.
Warm Regards, From Across The Border
@Shafaq: Indian exports to Pakistan will work for the benefit of the general public of Pakistan as they will get better products at a cheaper price . Increased competition from Indian manufacturers will force Pakistani Industry to cut costs , lower prices and improve quality . We in India went through this entire cycle when India opened its economy in the early and mid 1990's and emerged a lot stronger as a country . The people in India , who got left behind were the business groups which did not improve their competitiveness . Tariff barriers are bad for the general public and economy . Free trade is bad for lazy and inefficient businesses .
@Mohd tarekh:
Before venting out frustration against Pakistan, kindly provide the name of those reliable sources from where you have quoted this information.
And yes, please worry about Bangladesh's future. There are 180 million people in Pakistan and we can take care of our country with any extra 'concern' from other states. Cheers :)
Trade business routed between both the countries as mentioned in the article seems that only India is taking the benefit and Pakistan is helping Indian economy to export its products here. FPCCI should work on the demand of Pakistani products for Indian market as well before opening such offices.
Good move, I commend both governments. The more we do together, the better our relationships will be. I cannot wait till the day i see Rawalpindi for the first time.
Trade is the only way to have peace in the sub-continent. Only when each country has a stake in each other's will we feel the need to have peace.
Indian Bank SBI has a capital worth 500 billion dollars..u got to be kidding me..thats 2.5 times paksitan whole economy..and Indians wont even open a sngle account in pakistani banks...