• Wednesday, June 3, 2020

No MFN status to India for now

Discussion in 'Pakistan Economy' started by cb4, Jan 14, 2014.

  1. cb4

    cb4 ELITE MEMBER

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    ISLAMABAD - Pakistan on Monday ruled out the possibility of granting Most-Favoured Nation (MFN) status to India in the trade talks to begin from Wednesday (tomorrow) in New Delhi.
    “Granting MFN status to India is not part of agenda of the talks as both sides will hold negotiations on giving non-discriminatory access (NDA) to the markets of two countries,” said Minister of State for Commerce and Textile Engineer Khurram Dastgir Khan while talking to The Nation on Monday. The title of the talks will be “meeting for review of previous round of setting of fresh timelines”.
    He informed that Pakistan would raise the issue of non-tariff barriers faced by the business community of Pakistan.
    “The two-day secretary-level talks will start from tomorrow (Wednesday), which will be followed by the meeting of commerce ministers of the two countries,” said Khurram Dastgir Khan. “I will visit to New Delhi to attend the SAARC Business Conclave starting on Friday and will hold meeting with my Indian counterpart on the sidelines of the business conclave,” said the state minister.
    Last round of talks between Pakistan and India was held in September 2012. Sources informed that both sides would also review the electricity trade, opening of bank branches in the upcoming talks.
    Sources said that non-discriminatory access (NDA) is the other name of Most-Favoured Nation status for India, which will have lesser political implication. On the issue of NDA, the source said that Pakistani ministry of commerce would approach the stakeholders after making progress on phasing out of the negative list.
    The government has not decided to grant Most-Favoured Nation (MFN) status to India, as it would consider it after 2014 general elections of the neighbouring country, sources said. Finance Minister Ishaq Dar has already made it clear that there is no immediate plan to give MFN status to India, saying there is a need to normalise relations between the two countries. However, Pakistan had assured the International Monetary Fund (IMF), as part of $6.64 billion loan agreement, of granting the MFN status to India. “We are moving forward to eliminate the negative list on trade with India and extend India the Most-Favoured Nation status,” Pakistan had said in a letter to the IMF.
    Meanwhile, according to statement issued here, Indian Commerce Minister Anand Sharma will inaugurate the 5th South Asian Business Leaders Conclave (SBLC) on Thursday in New Delhi. Engr Khurram Dastagir, who will lead the Pakistani delegation, will address the ministerial round along with his counterparts from other South Asian countries.
    “The SBLC, which has been graduated to Economic Davos of South Asia is a biennial event of SAARC Chamber of Commerce & Industry (SAAC CCI) which is addressed by eminent personalities, business leaders and policy makers from across the region,” states a press release issued by chairman media, diplomatic affairs and public relations FPCCI Malik Sohail Hussain. The 5th edition of the Conclave is being organised in collaboration with the Federation of Indian Chambers of Commerce & Industry (FICCI) in partnership with Friedrich Naumann Foundation: regional directorate, New Delhi.
    About 300 delegates from across South Asia are expected to participate in the Conclave which is being organised under the theme “South Asian Century: Progressing towards Regional Integration” while focusing on important contemporary and emerging issues. The inaugural session will be followed by Ministerial Round “Taking Stock of the South Asian Economic Integration Process” wherein Commerce/Economic Affairs Ministers from Afghanistan, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka will share their vision to foster regional integration process in South Asia. In addition to five sessions on important issues like energy cooperation, entrepreneurial development, South Asia in 21st Century and others the Conclave also includes dedicated session on youth.
    In addition to Indian commerce minister, the inaugural session will be addressed by Ahmed Saleem, Secretary General South Asian Association for Regional Cooperation, Vikramjit Singh Sahney, President SAARC CCI, Sidharath Birla, President FICCI and Siegfried Herzog, Regional Director FNF.
    The ministerial round will also be addressed by Shaker Kargar, Minister of Commerce and Industry Afghanistan, Norbu Wangchuk, Minister of Economic Affairs Bhutan, Mohamed Saeed, Minister for Economic Development Maldives, Shanker Prasad Koirala, Minister for Commerce and Supplies Nepal and Abdul Rishad Bathiudeen, Minister of Industry and Commerce Sri Lanka.
    The unresolved issue relating to expanded ‘containerized trade’ is likely to be taken up in secretary-level talks in New Delhi.
    Well-informed sources aware of the development told TheNation that the factor has also caused limited trade from the land route of Wagah/Attari while more committed effort to implementing the roadmap from both sides remained unseen unfortunately.
    The two sides in secretary-level talks are likely to agree on fresh timelines for implementing the agreed roadmap regarding expanded bilateral trade.
    “Expanded bilateral trade and political relationship between India and Pakistan would surly help both the countries to get the Safta agreements implemented in its true spirit,” a businessman from Pakistani side commented. He also said that without the removal of major obstacles by India in the way of expanded trade, Pakistan should set aside one of its promise it had made earlier in the roadmap pertain to grant India with the MFN (most favoured nation) status.
    It is to note here that India’s trade with Bangladesh, for example, has more than doubled to $5.8bn since 2010. Similarly, its trade with Nepal has surged from $1.9b to $3.6bn and with Sri Lanka from $2.5bn to $4.6bn. Pakistan, on the other hand, has remained far behind to boost its trade significantly with the Saarc member countries. Its trade with Nepal is negligible and with Bangladesh $650mn and with Sri Lank $384mn.

    No MFN status to India for now
     
  2. kseeker

    kseeker FULL MEMBER

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    If such stand continues for long time, it will not help Pakistan in any way ! For India, it will not be a big deal, business as usual :)

    hxxp://elibrary.worldbank.org/doi/book/10.1596/1813-9450-6483 (replace hxxp with http)

     
  3. my2cents

    my2cents SENIOR MEMBER

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    @cb4

    Why is IMF insisting on Pakistan in normalizing the trade relation with India and granting MFN? Is it part of the loan guarantee??

    I am all for the trade and MFN status between our countries because it will uplift both our economies. We don't have to trade in dollars and you guys can save a lot in foreign exchange.

    According to some analysts we have potential to take our trade to some 30-40 billion dollars. It is also true that the trade is going to skew in our favor being a dominant economy but according to most analysts it will be overall positive for both countries.

    For example our trade with China is skewed in their favor by about 30 to 40 billion dollars because they are a dominant economy with varied products to offer at lower costs than what is offered in our market. Market forces will play it out and who ever is most efficient to offer the product at affordable cost will rule the market. It is good for consumers because it will reduce our inflationary pressures a bit which is quite high at this moment.

    If these number are true then I see that you are under selling yourselves and don't realize your potential to be a big player in bilateral trade. If we can have trade with tiny Nepal to a tune of $3.6 billion then why not Pakistan which is still hovering around $2.5 billion last I checked??
     
  4. faisal6309

    faisal6309 SENIOR MEMBER

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    I was just going to post this.
     
  5. Devil Soul

    Devil Soul ELITE MEMBER

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    Oh you EVIL Pakistanis....o_O
     
  6. jbgt90

    jbgt90 ELITE MEMBER

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    Do we really care if they give us the status or not? we still sell there via Dubai .
     
  7. Cheetah786

    Cheetah786 PDF VETERAN

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    Some people on Both sides of the border benefits cause of Dubai ave and thats why the hesitation.
     
  8. Skull and Bones

    Skull and Bones ELITE MEMBER

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    Thank You.
     
  9. trident2010

    trident2010 SENIOR MEMBER

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    I think the most profit from not giving India MFN status is the business men in Pakistan. They sell the Indian goods at higher rate by importing through Dubai. Pakistani people have to pay more for what they can get cheaper..
     
  10. nair

    nair BANNED

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    Thank You!!!!!!!!!!!!..... Wonder why these idiots go for asking MFN as if it is going to make a huge difference.....
     
  11. jbgt90

    jbgt90 ELITE MEMBER

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    Are you saying some Indians have control over GOP policies? cuz we gave Pakistan MFN status back in 96.
     
  12. OrionHunter

    OrionHunter ELITE MEMBER

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    Relax! Non-discriminatory access (NDA) that Pakistan is giving is the other name for Most Favoured Nation (MFN) status to India, which will have lesser political implications.

    So, guys. Nothing much to see here! [​IMG]
     
  13. pkuser2k12

    pkuser2k12 SENIOR MEMBER

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    No MFN status to India for now



    | Dastgir says secretaries to discuss market access | May review electricity trade, opening of bank branches |




    ISLAMABAD - Pakistan on Monday ruled out the possibility of granting Most-Favoured Nation (MFN) status to India in the trade talks to begin from Wednesday (tomorrow) in New Delhi.



    “Granting MFN status to India is not part of agenda of the talks as both sides will hold negotiations on giving non-discriminatory access (NDA) to the markets of two countries,” said Minister of State for Commerce and Textile Engineer Khurram Dastgir Khan while talking to The Nation on Monday.



    The title of the talks will be “meeting for review of previous round of setting of fresh timelines”.
    He informed that Pakistan would raise the issue of non-tariff barriers faced by the business community of Pakistan.



    “The two-day secretary-level talks will start from tomorrow (Wednesday), which will be followed by the meeting of commerce ministers of the two countries,” said Khurram Dastgir Khan.


    “I will visit to New Delhi to attend the SAARC Business Conclave starting on Friday and will hold meeting with my Indian counterpart on the sidelines of the business conclave,” said the state minister.



    Last round of talks between Pakistan and India was held in September 2012. Sources informed that both sides would also review the electricity trade, opening of bank branches in the upcoming talks.



    Sources said that non-discriminatory access (NDA) is the other name of Most-Favoured Nation status for India, which will have lesser political implication. On the issue of NDA, the source said that Pakistani ministry of commerce would approach the stakeholders after making progress on phasing out of the negative list.



    The government has not decided to grant Most-Favoured Nation (MFN) status to India, as it would consider it after 2014 general elections of the neighbouring country, sources said. Finance Minister Ishaq Dar has already made it clear that there is no immediate plan to give MFN status to India, saying there is a need to normalise relations between the two countries.



    However, Pakistan had assured the International Monetary Fund (IMF), as part of $6.64 billion loan agreement, of granting the MFN status to India. “We are moving forward to eliminate the negative list on trade with India and extend India the Most-Favoured Nation status,” Pakistan had said in a letter to the IMF.



    Meanwhile, according to statement issued here, Indian Commerce Minister Anand Sharma will inaugurate the 5th South Asian Business Leaders Conclave (SBLC) on Thursday in New Delhi. Engr Khurram Dastagir, who will lead the Pakistani delegation, will address the ministerial round along with his counterparts from other South Asian countries.



    “The SBLC, which has been graduated to Economic Davos of South Asia is a biennial event of SAARC Chamber of Commerce & Industry (SAAC CCI) which is addressed by eminent personalities, business leaders and policy makers from across the region,” states a press release issued by chairman media, diplomatic affairs and public relations FPCCI Malik Sohail Hussain.



    The 5th edition of the Conclave is being organised in collaboration with the Federation of Indian Chambers of Commerce & Industry (FICCI) in partnership with Friedrich Naumann Foundation: regional directorate, New Delhi.


    About 300 delegates from across South Asia are expected to participate in the Conclave which is being organised under the theme “South Asian Century: Progressing towards Regional Integration” while focusing on important contemporary and emerging issues.



    The inaugural session will be followed by Ministerial Round “Taking Stock of the South Asian Economic Integration Process” wherein Commerce/Economic Affairs Ministers from Afghanistan, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka will share their vision to foster regional integration process in South Asia. In addition to five sessions on important issues like energy cooperation, entrepreneurial development, South Asia in 21st Century and others the Conclave also includes dedicated session on youth.



    In addition to Indian commerce minister, the inaugural session will be addressed by Ahmed Saleem, Secretary General South Asian Association for Regional Cooperation, Vikramjit Singh Sahney, President SAARC CCI, Sidharath Birla, President FICCI and Siegfried Herzog, Regional Director FNF.



    The ministerial round will also be addressed by Shaker Kargar, Minister of Commerce and Industry Afghanistan, Norbu Wangchuk, Minister of Economic Affairs Bhutan, Mohamed Saeed, Minister for Economic Development Maldives, Shanker Prasad Koirala, Minister for Commerce and Supplies Nepal and Abdul Rishad Bathiudeen, Minister of Industry and Commerce Sri Lanka.



    The unresolved issue relating to expanded ‘containerized trade’ is likely to be taken up in secretary-level talks in New Delhi.



    Well-informed sources aware of the development told TheNation that the factor has also caused limited trade from the land route of Wagah/Attari while more committed effort to implementing the roadmap from both sides remained unseen unfortunately.


    The two sides in secretary-level talks are likely to agree on fresh timelines for implementing the agreed roadmap regarding expanded bilateral trade.



    “Expanded bilateral trade and political relationship between India and Pakistan would surly help both the countries to get the Safta agreements implemented in its true spirit,” a businessman from Pakistani side commented. He also said that without the removal of major obstacles by India in the way of expanded trade, Pakistan should set aside one of its promise it had made earlier in the roadmap pertain to grant India with the MFN (most favoured nation) status.



    It is to note here that India’s trade with Bangladesh, for example, has more than doubled to $5.8bn since 2010. Similarly, its trade with Nepal has surged from $1.9b to $3.6bn and with Sri Lanka from $2.5bn to $4.6bn. Pakistan, on the other hand, has remained far behind to boost its trade significantly with the Saarc member countries. Its trade with Nepal is negligible and with Bangladesh $650mn and with Sri Lank $384mn.



    SOURCE:


    THE NATION


    No MFN status to India for now