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Pakistan not yet the most favoured neighbour

IndoCarib

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Sonya Fatah | Oct 16, 2011, 07.04AM IST

Every time I go to Pakistan I'm inundated with requests from friends, family, staff, and every so often , a friend of a friend of a friend. The demands are varied reflective of economic background, social and religious interests, age and what have you. But here's a sample list: classical music of the Carnatic variety, green and red cut-glass bangles, hair growth promoting Ayurveda oils, homeopathic medicine, Shiv and Ganesha murtis, Goan cashews, Feni, chooridar pajamas, Lucknavi kurtas , the list goes on.

For a long time now, the BSF hasn't dealt much with cross border terror on the Sindh-Rajasthan side; it has instead negotiated, at some price, the smuggling of goods between India and Pakistan. A black market not only exists , it thrives, pushing up the numbers of actual trade between the countries to a number that is many multiples of the official figure.

As a traveler with a limited budget I always land up with the glass chooris, and even that goes a long way in fulfilling the demands of Pakistanis hungering for things Indian. At a macro level this could change the nature of goods travel between India and Pakistan, which legally come through Singapore and Dubai. Of course there is talk of changed bills of lading and point-to-point travel so the goods arrive - with some lined pockets - at their final destinations . These days you can pick up Dabur and Himalaya products off the shelves of certain forward-thinking stores. In fact, Dabur has an office in Pakistan.

The good news, from the Pakistani perspective, is that it's not all a one-way street. My neighbours here in New Delhi also have their eyes on Pakistani goods. Embroidered suits, courtesy the popular Bareeze brand, embroidered Lahori chappals. More than one Indian has eyed the sexily-tailored shalwar kameezes of the Pakistani woman. During the hot months of May and June I'm always on the hunt for phalsa wallahs. You've got to try these tiny purple berries; they're in short supply in India but if you want some yummy snacky fare you've got to start importing some of this magic from Pakistan.

The small pleasures of life aside, there is scope here for trade in goods, services, and general public health if Indians look at Pakistan though a different lens than the terror factory and Pakistanis change their attitude towards trade with India. The recent brouhaha around trade talks is not misplaced though, noticeably , big names like the Tatas and the Ambanis were not in attendance.

To be fair to our governments , despite all the toil, turmoil , and turbulence that is the Indo-Pak relationship, there has been steady improvement in the trade relationship . Back in 1986 Pakistan had 42 items on its positive list with India. Today, though there is no MFN, there are 1,940 on that same list. India granted MFN status to Pakistan in 1996 but retains some protectionist barriers. Yet, two heads of trade ministries have met after 35 years on official business and all the signs for a change in the above hurdles are there.

Government to government terror dossiers and raps on the knuckles may not be moving ties ahead but bilateral trade, the economics of connectivity, reliance and convenience will change that. Try it and you'll see.

What does this mean today ? Official trade is currently at $3billion. The commerce ministers have decided on a three-year target of $6billion. I asked a Pakistani businessman of textile and cement background about likely scenarios . Once head of the Lahore Chamber of Commerce the mood, he says, for Indo-Pak trade is finally positive. Tariq Sayeed Saigol of the Kohinoor Maple Leaf Group, a longtime proponent of bilateral trade between the two, says the Attari-Wagah border could become an avenue of peace though there is work ahead on the infrastructure and red-tape front. "The arrangements there are tedious and expensive. We must allow trade across the borders via trucking and allowing them to ply and discharge goods at destination without having to unload at Attari or only to ship on Indian rolling stock as is the case at present."

Pakistan seeks to import a lot of goods from India. But Pakistan is also home to vast natural and mineral reserves, which could be tapped for both its domestic market as well as the endless consumption needs of India. Energy security, economic interdependence and sharing of other cultural resources through tourism could create a powerful economic, cultural and social bloc. We should embrace this and not shun it.

This doesn't even speak of trade in services, which will mostly benefit India at the moment. Still, Pakistan's larger trade deficit could be significantly reduced.

Finally, for those of you, who have little desire to make any incursions of peace, think of two things: a) as the PM once said, you can't choose your neighbour, and b) the trade surplus from this relationship will be in India's favour . In the long run if this accomplishes peace and
economic prosperity, how could you complain?

Pakistan not yet the most favoured neighbour - The Times of India
 

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