Institute to study Pakistan - India trade integration through Wagah

[SpArK]

Institute to study India-Pakistan trade integration through Wagah​

Despite the stalemate over territory with Pakistan and political intolerance between the two neighbours, Research and Information System for Developing Countries (an autonomous research institution set up with financial support from the Union government) has roped in Centre for Research in Rural and Industrial Development, Chandigarh (CRRID) to conduct a feasibility study on the infrastructure required for the trade integration through Wagah between the two countries.

The former Ambassador of India to Malaysia P S Sahay is entrusted with the task of conducting the study. The report would be submitted in December 2010.

The formal trade between India and Pakistan stands at $1.8 billion (as of 2008-09). The trade through third country or circular trade is estimated at $10 billion. This is conducted through agents operating in free ports like Dubai, Singapore and Central Asian Republic Countries.

The export to Pakistan is made through Mumbai and Kandla port to Karachi that incurs substantial cost in terms of logistics and loss of perishables.

The Pakistan Government, of late has invited Indian investors including Tata, Reliance and Essar to discuss the development of Thar Coal Power projects. The Pakistan Governmentânts initiative of inviting manufacturers of CNG buses to set up unit there can also usher the beginning of joint venture between the two nations.

A study conducted by FICCI jointly with SAARC Chamber of Commerce and Industry outlines that the two countries can collaborate in information technology, fish processing, drugs and pharmaceuticals, agro-chemicals, chemicals, automobile ancillaries, light engineering and leather processing.

The bilateral trade between India and Pakistan restricts to 1938 items (products importable from India).

An analysis of this list reveals that a large number of these items are confined to minerals, chemicals and other raw materials. Most of the manufactured finished goods, bulk drugs, pharmaceuticals, textiles and food products are banned.

Indian industry would like the Pakistan government to enlarge the positive and grant MFN status to India.

The state of Punjab that shares common border with Pakistan can fetch maximum benefit for its industry with the trade opening up between two countries.

The difference of harvest season by 8-10 days can help in meeting the seasonal and periodic shortages and save the crops from *******.



If the proposals of report are implemented in letter and spirit by the two countries, the bilateral trade may instantly grow two fold to the benefit of industry and trade on both the sides.



Institute to study India-Pakistan trade integration through Wagah