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Pros of Pakistan granting India Transit Facility to Transport Goods to Afghanistan
1. Pakistan will earn valuable foreign Exchange as Transit Fees.
2. Pakistan will earn the goodwill of Afghanistans Consumer of Goods of Indian Origin
3. Pakistan will earn the goodwill of Indian Manufacturers and Traders who will increase Import of Pakistani goods to India.
1. Sorry we dont need any Indian transit fee because we can earn more by having direct trade with Afghanistan instead of allowing flow of Indian goods into Afghanistan.
2. Sorry the Afghan people need food and other daily use items and they are already getting it from Pakistan, and most of their traders are also making big bucks by selling Pakistani goods there in Afghanistan. We dont need Indians to earn goodwill of Afghan people.
3. Till this day the mutual trade with India only benefited India not Pakistan. Whether indirectly or as a result of direct export between the two countries, the balance of this activity has always been in favour of India. India has enjoyed a huge trade surplus with sales to Pakistan at around $1.9 billion against imports of a mere $300 million in the recent past.
So in case we provide the transit route to India the lion share of the resultant benefit will again go to India.
Cons of Pakistan granting India Transit Facility to Transport Goods to Afghanistan
1. Pakistani goods will suffer competition from Indian goods which will most probably be cheaper than Pakistani Goods as the Indian Manufacturer buys Inputs on a much larger scale as well as Manufactures Goods on a much larger scale thereby having the benefit of lower costs.
2. However the most important point is that a good percentage of the Goods meant for Transit to Afghanistan will find their way into the Pakistani Markets and will be even more cheaper than normal imported Indian Goods as NO PAKISTANI IMPORT DUTIES were paid when the Goods crossed from India to Pakistan on their way to Aghanistan.
Pakistani Members will be aware of the Huge amount of Sri Lankan and Kenyan Tea arriving at Karachi meant for Afghanistan finds its way into the Pakistani Market.
There may be other types of Goods and until Pakistan finds an efficient and sure way to ensure that Goods IN TRANSIT to Afghanistan do indeed go to Afghanistan, and not enter the Pakistani Market, there will always be a hesitancy on the Pakistani Authorities part to dither and hinder the Transit of Goods etc. from India to Afghanistan.
There are many other disadvantages which Pakistan will face in case we allow direct transit route to India.
In addition Pakistan Members are aware that Unhindered Chinese Imports have destroyed Thirty to Forty Pakistani Industries.
No doubt the chinese goods are affecting Pakistan as much as any other country in the world but our industries have been closed due to political victimisation not China.
As such it is quite possible that large scale and open-free trade Indian Goods will have a very negative effect on Pakistani Industries.
Thus Pakistan not granting Transit facilities from India to Afghanistan may sound discriminatory to the Indian Members but until Pakistan can create an efficient machinery to ensure that Goods meant for Afghanistan do not enter the Pakistani Market I, for one, do not expect Pakistan to grant Transit facilities to India for not only Trade to Afghanistan but also to the Central Asian Republics.
This may be the most important reason as to why India is making such huge efforts to upgrade the Port of Chah Bahar so that it can find a Transit not only to Afghanistan but to all the Central Asian Republics.
Well Sir allowing India a free trade route is not at all in our benefit neither we should allow it.
India refused to allow the same to Nepal and BD why Indians grin when Pakistan does the same.