Most favoured nation status to India soon: Pakistan minister

[Abingdonboy]

Thats what I am saying, dont give MFN to us, we dont want it, its useless.

To be fair if implemented how it is proposed the MNF will massively favor India and will be pretty fruitful for the Indian economy. India isn't rich enough right now to turn down Billions of USD a year in exports.

 

[Markus]

Well then lobby your government and ask them to stop asking for it.

I dont recognize Indian govt., I run my own govt.

 

[anilindia]

Day we get MFN, we will get Pakistan economy flooded with Indian products. Pakistani company can not survive....

 

[nair]

Day we get MFN, we will get Pakistan economy flooded with Indian products. Pakistani company can not survive....

Nothing like that..... The term MFN is very confusing..... They need to change that term to something else......

 

[Sergi]

I am hearing this since 2009 i think?

India gave us this status back in 1990s?

Yeah did it really help Pakistan after that status? No right?

Will it help India? I guess not at all

Do you know anything that is produced in Pak is used by Indian consumers ???

And can you say that for Indian products ???

Last time I read somewhere Indian good are either smuggled or bought via other roots.

In short , there is a potential market for Indian goods in Pakistan and consumers do use those goods. Just govt of Pak don't get the taxes and duties it will get if they allowed it properly. I mean relaxing the norms.

 

[tvsram1992]

what is its advantage ?

 

[Hyde]

Do you know anything that is produced in Pak is used by Indian consumers ???

And can you say that for Indian products ???

Last time I read somewhere Indian good are either smuggled or bought via other roots.

In short , there is a potential market for Indian goods in Pakistan and consumers do use those goods. Just govt of Pak don't get the taxes and duties it will get if they allowed it properly. I mean relaxing the norms.

Yes there are few items I know which India imports from Pakistan.

Cement for example

Few days I was at Wagah border, saw about 200 trucks ladden with goods and packed, ready to go to India. Couldn't see the number of trucks stalled at the India side of Wagah border

 

[Sergi]

Yes there are few items I know which India imports from Pakistan.

Cement for example

Few days I was at Wagah border, saw about 200 trucks ladden with goods and packed, ready to go to India. Couldn't see the number of trucks stalled at the India side of Wagah border

Exactly. India need all it can get.

AFAIK the few things that go to Pak through regular trade are vegetables and medicines.

The regular taxes and duties make it unprofitable for the seller. So they avoid direct trade. And the much demanded things find its way through non-legal way

 

[livingdead]

I am hearing this since 2009 i think?

India gave us this status back in 1990s?

Yeah did it really help Pakistan after that status? No right?

Will it help India? I guess not at all

it may not help India in real terms but its a good cbm. People who want better trade relation with pakistan, will have something to show to their detractors.

 

[Sergi]

what is its advantage ?

Advantage on our part is multimillion trade.

Advantage on their part is supply and demand curve. It will control the inflation in their economy and will help it grow.
Plus competition to local producers will make them to work hard and finally good market.

I think Pak think that India will use this to legally expand the NETWORK in their country.

 

[OrionHunter]

AMRITSAR: "Pakistan will soon announce the most favoured nation (MFN) status to India," said Naeem Anwar, minister (trade) Pakistan high commission, while addressing a session on "Doing business with Pakistan" organised by Confederation of Indian Industry (CII) here on Wednesday.

"With the new government in Pakistan, the relations between India and Pakistan are bound to improve manifold," he said and added that easier visa norms will go a long way in enhancing business ties between the two countries.

Hafiz Saeed and Co must now be pulling their hair out after hearing this news! They probably are already planning the next attack to derail the very thought of friendship with their greatest enemy on Earth after the US of A - the Kafir Yindoo banayas!

But seriously, post-MFN, Pakistan's imports from India will certainly increase, though it is difficult to forecast by how much. However the figures of exports from Pakistan will only grow if India actually reduces the Non-Tariff Barriers. The argument that these NTBs are not Pakistan-specific would not help Pakistan's exports or its industry. The cost of certain machinery or products will go down for Pakistan, benefiting certain industries, but at the same time there is a danger of some local industries being knocked out by Indian imports, and enhancing unemployment and resentment against the initiative.

The balance of trade in favor of India at present is about $ 1.4 billion. This needs to be corrected by reducing NTBs. Most part of Pakistan's business community, led by traders, has been supporting granting MFN status to India. Their support is subject to the hope that they will be able to gain access to the much-larger Indian market next door. They, therefore, are looking to the Government to extract some kind of concessions from India to lower their bar of non-tariff-barriers.

Let's wait and see what happens.

Cheers!

 

[Last Hope]

Why not give Nawaz Sharif too with the MFN? I'm sure he will love it more there.

 

[Spring Onion]

)))) Nawaz Sharif Mills are going to export massively to India??

Hafiz Saeed and Co must now be pulling their hair out after hearing this news! They probably are already planning the next attack to derail the very thought of friendship with their greatest enemy on Earth after the US of A - the Kafir Yindoo banayas!

But seriously, post-MFN, Pakistan's imports from India will certainly increase, though it is difficult to forecast by how much. However the figures of exports from Pakistan will only grow if India actually reduces the Non-Tariff Barriers. The argument that these NTBs are not Pakistan-specific would not help Pakistan's exports or its industry. The cost of certain machinery or products will go down for Pakistan, benefiting certain industries, but at the same time there is a danger of some local industries being knocked out by Indian imports, and enhancing unemployment and resentment against the initiative.

The balance of trade in favor of India at present is about $ 1.4 billion. This needs to be corrected by reducing NTBs. Most part of Pakistan's business community, led by traders, has been supporting granting MFN status to India. Their support is subject to the hope that they will be able to gain access to the much-larger Indian market next door. They, therefore, are looking to the Government to extract some kind of concessions from India to lower their bar of non-tariff-barriers.

Let's wait and see what happens.

Cheers!

Pakistan is NOT going to get any benefit from this step.

India wont allow much improts from Pakistan. such barriers will be intact

 

[nair]

Pakistan is NOT going to get any benefit from this step.

India wont allow much improts from Pakistan. such barriers will be intact

Explain me how pakistan is not going to get benefited

Btw anyone could find out the video of that collage debate on this subject, where in pakistan students won.... We may get some good points from those students

 

[Pfpilot]

This debate touches upon some important underlying issues regarding Pak-Indo trade. Having access to the Indian market theoretically changes the game for Pakistani companies. Suddenly, having a 10 times larger potential customer base borne out of thin air, with very similar values and customs is the dream of salesmen and marketing executives everywhere. But the problem is in the inherent ill will present in the general population on both sides against one another. An animosity cultivated by successive governments looking for any excuse to divert the masses from the lack of progress on internal problems. As a result, Pakistani goods entering India will always struggle to make do just on the basis of their Pakistani lineage. Until the Indian consumer isn't allowed to see foreign products as value producing goods and services, as opposed to the politics behind where those products are from, Pakistani companies will only have an artificial increase in market size. That is to say nothing of the damage to any trade were a conflict to breakout. Pakistani products would be boycotted on mass and all of these exporters would suddenly be too big to survive a Pakistan-only market and collapse on mass.

The other side of the coin has its own pitfalls. Having Indian goods flood the Pakistani market would be a game changer for all. For the consumer, lower prices and greater variety will change what they buy and how they live for the better. The cut throat nature of such competition will spur improvement in the goods and services available. In the end, the winner is the Pakistani consumer and the Indian exporter. The loser in all of this is the domestic Pakistani industry. The four decades the Indian companies were allowed to develop a foundation in the domestic market before having to deal with outside competition created formidable organizations that were able to go toe to toe with any of the famed foreign corporations that entered India after the deregulation of the economy. Those companies have immense production capacities and economies of scale that are unmatched in Pakistan. Once they enter the local arena, Pakistani competitors will get crushed to the wayside.

From a purely economic standpoint, cooperation in trade is a huge win-win for both nations. Indian competition may crush many local companies, but it will compel others to raise their game and allow them to compete on a global level as a result. The consumer will be flush with choices and gain value at a lower price. The losses of local businesses would create short term problems. But problems that are rectified in the long term, as these foreign corporations invariably start investing in local production plants and distribution facilities. It is the nature of globalization: for a nation to lose something and gain it back elsewhere. Why the loss of local companies takes on such doom and gloom is that the owners of these companies are often the power players in local politics. They will always be hard pressed to support any cause that brings them harm, even if the nation wins convincingly as a whole. The government, which is in the end, answerable to such people will always do what it can to prop up inefficient and unsustainable companies in order to safe guard their vote bank and financial backing. Then there is the simple psychology of patriotism. A win for Pakistani companies at the expense of the individual is often erroneously seen as preferable.

If enough people look at the big picture, the future of Pak-Indo trade is bright. But the Pakistan and Indian governments must do more to eliminate the instability of the relations between the two nations. Whether the fault is Pakistani or Indian, change will require an effort from both. In such a case it maybe more prudent to look ahead to prosperity of tomorrow, as opposed to the misjustice of the past.