The HBS Guy
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Small traders say MFN status to India under US pressure
Small traders believe Pakistan's decision to grant Most Favoured Nation (MFN) status to India has come under severe pressure from the United States, which is aimed at 'obliterating' the fragile economy of the country.
They said Pakistan could not compete with Indian products including manufacturing and agriculture goods rather it would lose its domestic market, which would lead to its local manufacturing and agriculture sectors' decline.
"It is a clever economic policy of India to dominate Pakistan after failing to subdue the country on military grounds through US support," Chairman All Karachi Tajir Ittehad, Atiq Mir, said here on Friday.
He recalled former military dictator General Zia-ul-Haq's era when India badly damaged Pakistan economy by exporting 697 different items to the country, of which, a majority of the products later on continued to pour in through smuggling, leaving the local manufacturing sector subsided.
He asked the government to review its policy to avoid repeating the same mistake of the past and suggested to make better policies to augment Pakistan's economic growth.
"The US policy is to largely depend on India in the region against its arch economic rival China after undergoing historic economic turmoil at home," he said, adding the United States would never rely on Pakistan as its economy was already struggling.
He feared the MNF status to India would allow the eastern neighbouring to flood the Pakistani markets which would ultimately push the small sized industrial units towards closures and challenge the growth of medium sized manufacturing units.
"India would definitely give huge subsidies to its exporters on manufacturing and agriculture products to encourage them to dump goods which already Pakistan is producing only to harm its rival nation's economy," he said.
He apprehended that the MNF status would not only open doors for smuggling into Pakistan, but it would boost the illegal goods' transportation trend from neighbouring countries due to weak government's policies.
"The issue is very serious, as Pakistani industrial units are suffering from power shortage and gas cuts where the agriculture sector is fighting catastrophic floods, high priced urea, increasing fuel cost and such other big problems.
Then, how Pakistani products can compete with India's inexpensive products at home," Atiq Mir questioned.
He said Pakistan could hardly export its dry fruits items to India under the new business deal between the two nations, and in return it would receive products of large range, cloths, wheat, and IT products.
"Pakistan's cottage industry is already fighting the negative impact of Chinese products, then how it could survive another competitor," he asked.
AKTI President said the India's economic growth was persistent with a stable currency whereas Pakistan's economy was altogether dependent on foreign financial aid and IMF programmes, adding there was no match between both the countries.
To a question, he said Federation of Pakistan Chambers of Commerce and Industry (FPCCI) had appreciated the government's decision to give MNF status to India on political pressure, which would ultimately hit these big traders too.
"It is not a principled decision and is against Pakistan's economy and its nation," he opined.
"The present government also played politics with the nation and bowed down to the US pressure on all key issues, disrespected the nation and damaged the country's economy," he blamed.
Small traders say MFN status to India under US pressure | Business Recorder
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The line is red is what I wanted to highlight.
