Indo-Pak Bilateral Trade Can Increase to $8 Billion

[SpArK]

Indo-Pak Bilateral Trade Can Increase to $8 Billion
​

Opening up of the integrated checkpost at Attari-Wagah border and Pakistan’s granting Most Favoured Nation (MFN) status to India can increase bilateral trade to USD eight billion a year in the next two years from the current level of USD 2.6 billion, according to a study released today by industry chamber ASSOCHAM.

Islamabad has committed to bury the negative list of 1,209 items by the end of this year and move to a regime that is in line with WTO rules.

"This is a very welcome step towards reduction of barriers to bilateral trade," said The Associated Chambers of Commerce and Industry of India (ASSOCHAM) in a study 'The Potential of Indo-Pak Economic Engagement in Post-MFN Scenario.'

"The decision to move towards a negative list approach will go a long way in saving time and costs incurred by third country trade route that encompasses in almost 20,000 items, which could otherwise follow the bilateral route," said ASSOCHAM president Rajkumar Dhoot while releasing the study.

Nearly 6,000 items can now be imported into Pakistan from India as against less than 2,000 items earlier. India granted MFN status to Pakistan in 1996 but Islamabad agreed to a time-frame of granting the MFN status to India during commerce minister Anand Sharma's visit in February.


The two countries will soon open up an integrated check post at Attari-Wagah border – which will raise the number of trucks crossing the border to about 600 from the current 150 – and ease visa rules for business travel. The issues figured in talks between prime minister Manmohan Singh and Pakistan president Asif Ali Zardari on April eight.

Pakistan has expressed willingness to give India transit facilities for trade with Afghanistan and Iran – especially in energy and infrastructure projects.


India has developed high competitiveness in the services sector. Based on qualitative and quantitative analyses,several areas with potential for cooperation in the near future have been identified.

They are: petroleum products, iron and steel, pharmaceuticals, chemicals, automobiles, heavy industries, electricity trade, small and medium enterprises, IT and IT-enabled services, telecommunications, transportation and financial services.

"Integrated check posts with faster customs clearance facilities need to be established to normalise trade relations," said Dhoot in a statement. "The establishment of a joint business council and a joint study group can be supportive to the process of trade normalisation."

Informal trade between India and Pakistan via third countries like the United Arab Emirates (mainly Dubai), Singapore and Hong Kong is estimated at USD five to seven billion. Legalisation of trade is expected to reduce costs and increase government revenue by collecting duties on imports, said Dhoot.
FILED ON: APR 11, 2012

http://news.outlookindia.com/items.aspx?artid=759268

 

[Bapu]

Limited trade with india is okay.

But Pakistan must NOT give india any transit facilities to Afghanistan, Iran and central Asia by road, until Sir Creek, Siachen and most importantly Kashmir dispute are solved. What else is there that india could export to those countries that Pakistan (and China) can't.

As for gas pipelines (IP and TAP), Pakistan should allow india to be part of these pipelines, it would not only bring us handsome annual transit fee but we will also have control over their energy supplies. My opinion is that once actual work is started on IP pipeline and is in full swing, indians will also join it despite uncle sam pressure -- indians might be short, dark, smelly or whatever but dumb they are NOT. We have energy shortfall of 5000MW, they have energy shortfall of 25000MW I think (not sure), so they need energy and lots of it and they know it -- and not to mention that energy requirements are also growing for both of us.

If indians get rid of their bania mentality and chanakya philosophy, they will realize that they have much to gain by normalizing relations and solving various disputes especially Kashmir with Pakistan. They could have SECURE energy supplies and transit facilities through Pakistan to anywhere they want which will also increase their influence in Afghanistan and central Asia with increased trade, and Pakistan should give any guarantee(s) in this regard to india's satisfaction in return for Jammu and Kashmir resolution to the satisfaction of Kashmiris. If not then Pakistan should only do some limited trade with india and maintain normal relations BUT link transit facilities to Afg., Iran and CARs with the Kashmir dispute resolution and must NOT accept LOC as international border, NEVER EVER, this is no solution, this IS the problem.

 

[rai_kamal]

Limited trade with india is okay.

But Pakistan must NOT give india any transit facilities to Afghanistan, Iran and central Asia by road, until Sir Creek, Siachen and most importantly Kashmir dispute are solved. What else is there that india could export to those countries that Pakistan (and China) can't.

As for gas pipelines (IP and TAP), Pakistan should allow india to be part of these pipelines, it would not only bring us handsome annual transit fee but we will also have control over their energy supplies. My opinion is that once actual work is started on IP pipeline and is in full swing, indians will also join it despite uncle sam pressure -- indians might be short, dark, smelly or whatever but dumb they are NOT. We have energy shortfall of 5000MW, they have energy shortfall of 25000MW I think (not sure), so they need energy and lots of it and they know it -- and not to mention that energy requirements are also growing for both of us.

If indians get rid of their bania mentality and chanakya philosophy, they will realize that they have much to gain by normalizing relations and solving various disputes especially Kashmir with Pakistan. They could have SECURE energy supplies and transit facilities through Pakistan to anywhere they want which will also increase their influence in Afghanistan and central Asia with increased trade, and Pakistan should give any guarantee(s) in this regard to india's satisfaction in return for Jammu and Kashmir resolution to the satisfaction of Kashmiris. If not then Pakistan should only do some limited trade with india and maintain normal relations BUT link transit facilities to Afg., Iran and CARs with the Kashmir dispute resolution and must NOT accept LOC as international border, NEVER EVER, this is no solution, this IS the problem.

If not by road then Airways and sea routes are free for us, yes it is a long route and expesnsive too...But we will manage it..

Disputes can be solved diplomaticaly but currently pakistan needs good economy rather than issues such as kashmir,,,.. From where did Sir creek and siachen is disputed area ???

hat else is there that india could export to those countries that Pakistan (and China) can't.

Why u all always come with china only and not alone??? We have got good service industry, well structured auto industry, chemical, and more so those country will look for our product if thy r good compare to others...