Misplaced fear over Pak-India trade

[sunny_aus]

Mr. Niaz, My view is that next door we have Iran as well and we failed to close a gas deal since last many years, than how come imports from india comes in so smoothly as compare to other countries.
Same goes with the buses and fruits as well. I rather prefer to buy Irani tomatoes and buses instead of indian.

Favortism to india is not only limited to privilege in imports (over other friendly countries), instead raw cotton will be sent and this has already resulted in increased prices in local markets which was a part of same game plan to disturb the local industry and eventually taking over their foreign clients.

With destruction of local industry we will slowly be moving towards indian dominance and our engineers will become their slaves helping india in their dream to producing indeginous products.

One reason for my view is more we buy from india more we loose the opportunity to develop trade relations with other countries, and since we have demand than why can't our rulers think to construct a refienry?
Which will not only save foreign exchange but will also creat jobs and pool of experts.

Second reason is that every penny india earns has a share to support anti Pakistan activities enabling indians to increase their defence budget. Which in turn also pressure Pakistan to look for a deterrent.

Third reason is indian products are cheap quality and does not match international standards.
Indian buses are mere junk and indians are in process of changing their out look so indian govt. came up with plan to install a new plant to replace their old buses but they need to be thrown out some where hence Zardari came up with this proposal to use Pakistan as indian junk yard.
It does not stop here next comes the spareparts for those junks and a big market at indian disposal for free.

If we buy buses from any other country than it will be difficult for Zardari to make them associates in his sole corruption bussiness but indians would love to over imvoice their junk hence rolling Zardari's stealing industry.

Fourth, I can bet if we allow indian products in Pakistan than market will be flooded with those but 80% will be smuggeled in.

Fifth, I'm personally not in favor of people to people contact with indian people. We gain nothing and they learn and earn from us.

Sixth, I'm shocked menon adressed the world media that Pakistanis are terrorists and Bashir return him next moment with trade favors!

India and Pakistan are neighbouring countries and because of the same type of life styles, mainly between Panjab/ Sindh states of Pakistan and western north Indians, there are many similarities between these two countries. And this also creates a competitive environment for progress between these two countries which is quite normal. There is a need to encourage this type of competitive environment in South Asia which will finally result in a better development of South Asia.

 

[Contrarian]

Malay, I do agree with you on pace of liberalisation but Energon has a valid point. Ingenious development is good for the country, specially when a healthy amount is poured into R & D like its happening in India, keeping the sector closed will harm local industry in terms of lost time and opportunity.

I am not saying that liberalization is a bad idea. Im ALL for it, and i support it, but i say it should be in a phased manner. Being a closed economy is catastrophic and leads to bankruptcy and ineffciency as we'v seen in India. BUT it should be done slowly, so that local companies grow along. For example, FDI in xyz sector should start with 10% so that the foreign company joins in, then transfers its best practices, then 20% so it has a greater say and so on, rather than a direct 50% or 100%. This should be spread over a period of period of years.

You invested well in developping a basic platform and infrastructure which's needed to absorb imported advanced technology....but you'll only be able to compete at international level thru JV's with global partners.

Yes, but this is when Indian companies are able to compete themselves. Like TATA now. It can compete with the best of the business, infact it is one of the best in the bussinesses. This would not have come about had we liberalized too fast.

With Indian domestic market becoming more and more expensive every year outsourcing to cheaper and luctrative markets like Pakistan would be beneficiary for both sides. Core business should remain in India, manufacturing in Pakistan, Bangladesh and Sri Lanka and exports to the global market.

This formula should result in improved and competitive standard goods and services and enhance trade.

Yes, but here mate, India already has a single market system with Nepal and Bhutan. With Sri Lanka, we already have an FTA and they have benifited enough that they are now asking for a Comprehensive Economic Treaty with India. Even Bangladesh is now asking for more trade with India ie it wants India to open up further for its products. Its only Pakistan that still does not want comprehensive trade with India. For SAFTA, Pakistan is the single biggest objection raising country. I wanted to ask you, could you explain the rationale behind this? Does Pakistan see a benifit in not implementing SAFTA ?