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Yes, we can compete in trade

Varad

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Yes, we can compete in trade


“Yes, we can compete in trade with India. Its huge size, booming economy and technological edge should not be a cause of concern for us, but rather seen as an opportunity.”

That was the crux of the message, which a select group of business leaders gave to Commerce Secretary Zafar Mahmood in Karachi — a few days before he was scheduled to meet his Indian counterpart Rahul Khullar to resume the stalled talks on trade after a gap of more than two years.

The confidence of Pakistani business leaders in the informal meeting came as a pleasant surprise for me. Being a journalist, perhaps we are more accustomed to only hearing stories of doom and gloom, especially in the Pakistani media world where negativity reigns supreme. But more on the issue of rampant cynicism in Pakistani media and how it affects the country in general and the economy in particular some other time.

Getting back to Pakistan-India trade, it was indeed an eye-opener to find representatives of various sectors — from textile to information technology and cement to automobile — underlining the fact that despite the non-tariff barriers imposed on Pakistani exports by our giant neighbour, estranged relations, and host of other practical problems that impede bilateral trade, they not only see themselves as competitive in the Indian market, but expect their businesses to grow with the normalisation of trade and economic relations.

One of the leading textile entities of Pakistan, which could not export its goods to India through the relatively cheaper rail, road or sea routes because of this or that constraint, decided to send products via the costly air route. Surprisingly, it still managed to remain not just competitive, but also expand exports.

A representative of the automobile sector appeared optimistic about selling engineering goods to India. The spare-parts of Pakistani tractors already have a niche in the Indian market, and select other products can also find buyers because made-in-Pakistan automobile parts are of superior quality as well as offer competitive prices.

The Indian information technology sector — one of the mainstays of its booming economy — generating staggering revenues of 70 billion dollars a year and employing more than two million people — offers Pakistan a huge potential to expand and grow.

Pakistan’s information technology sector, though small, with a around 150,000 professionals and one billion dollars worth exports, eyes winning business process outsourcing from India, establishing collaborative development centers, cross-selling of products as well as tacking other markets in joint ventures. According to Jehan Ara, president of Pakistan Software Houses Association for IT & ITES (P@SHA), Pakistani professionals remain second to none and have proved themselves by developing some of the most sought after software in the world.

Similarly, spokesmen for the cement sector, which has been exporting more than 600,000 metric-tonnes on an average to India for the last four years, claim that with its 10 million tones of surplus production capacity, it has a tremendous potential to expand sales in the Indian Punjab and Haryana states if trading is relaxed through road and rail links.

The brainstorming session with the commerce secretary ahead of his April 27-28 talks was organised by leading businessman Amin Hashwani, an active peace campaigner and advocate of Pakistan-India trade relations through the platform of Aman Ki Asha — a civil society-led peace movement launched jointly by the country's media giant, the Jang Group and The Times of India group.

The optimism and the enthusiasm seen at the interactive session with Mahmood did not prove misplaced. The two-day Pakistan-India talks on trade manage to achieve more than what one expected keeping in view the history of rocky and estranged relations between the two nuclear armed neighbours.

What makes the recently-held talks different from the four other such rounds of discussions was summed-up aptly by Mahmood. “In the past, it was just the articulation of good intentions. This time round, we have put in place, a mechanism to implement those intentions,” he told this scribe.

And indeed, it was a huge 20-point agenda which was put on the table, which according to the commerce secretary requires time — at least six months — to get absorbed and digested for implementation. The two sides have set up working groups and tasks forces, which will submit their reports and pave the way for another interaction between the commerce secretaries of the two countries in six months time.

“We have managed to break the inertia of decades,” said Mahmood. The two sides have put in place a roadmap that encompasses all vital issues from the question of granting most-favoured nation (MFN) status to India to the non-tariff barriers on Pakistani goods, he added. “By October, we hope to grant MFN to India.”

The good thing is that the Pakistani business community does not appear worried about the local market being flooded by Indian goods as a result of relaxed trade regime. They see it as an opportunity to make a niche for themselves in the billion plus Indian market. Stiff competition improves the competent and annihilates those who lag behind. This remains the spirit of free trade.

When Pakistan can compete with China, which has a preferential trade agreement with Islamabad, it indeed stands a chance in the face of the Indian challenge. Currently, the trade balance is heavily tilted in India's favour. Its exports are four to five times higher than Pakistani exports to India.

However, in the mid- to long-run, trading with India makes more sense. It will not just bring cheaper imports and give an access to a bigger market, but greater economic linkages and dependency will also help in the resolution of longstanding political conflicts and ensuring peace in this volatile region. Building bridges of peace through economic ties should be the mantra in this day and age. And the good tiding is that not only the interest groups, but the governments of the two sides appear to have finally realised this. Never before in the traumatic history of these two nations, one finds so little opposition to building ties of trust through economic and trade relations and so much support for giving peace a genuine chance. There are reasons to be optimistic.

Yes, we can compete in trade
 
It really does not matter.

India stand independent in its economy.

Pakistan requires help.

Their Minister was recently in Saudi Arabia asking for funds for Pakistan National Budget.

The trade deficit is the denominator.

Let them be and let them find their own solutions!
 
It depends what they mean by economically.

If it means GDP then no, if it means GDP per capita then most definitely. The question should be can India compete with Pakistan in this area.

As far as military budget is concerned, no, but it's not necessary since I have the feeling Pakistan will be able to get access to better technology than India.
 
It depends what they mean by economically.

If it means GDP then no, if it means GDP per capita then most definitely. The question should be can India compete with Pakistan in this area.

As far as military budget is concerned, no, but it's not necessary since I have the feeling Pakistan will be able to get access to better technology than India.

Some statistics please.

Do also account for the fact that loans have to be taken for merely paying the interest to the loans taken earlier.

Access to get better technology costs money.

To shore up the budget if one has to take money from the Saudis, that hardly indicates the loose change required to get technology or anything else.
 
It depends what they mean by economically.

If it means GDP then no, if it means GDP per capita then most definitely. The question should be can India compete with Pakistan in this area.

As far as military budget is concerned, no, but it's not necessary since I have the feeling Pakistan will be able to get access to better technology than India.
India has higher gdp per capita than pak
Care to elaborate on ur second point??
 
It really does not matter.

India stand independent in its economy.

Pakistan requires help.

Their Minister was recently in Saudi Arabia asking for funds for Pakistan National Budget.

The trade deficit is the denominator.

Let them be and let them find their own solutions!


Problems which we are facing if put on India, you could see how quickly India disperse, we have lot of issues as key hurdles in our economic growth but no doubt that there is much potential to compete India & this is not problem.
Being as realistic i didn't deny that unfair government policies are giving negative results and main politics and more over strategic issues. Till we will not regulate or solve these key matters, to compete any country in trade or economics will be unrealistic idea.
 
It depends what they mean by economically.

If it means GDP then no, if it means GDP per capita then most definitely. The question should be can India compete with Pakistan in this area.

As far as military budget is concerned, no, but it's not necessary since I have the feeling Pakistan will be able to get access to better technology than India.

Better technology than India :lol:

We have a much better indigenious defence R&D , we have 9 times of the defence budget which is gonna increase year on year coz of our robust economy. We have access to Israeli and American weapons coz of our money .
Seeing the current ties of US and Pakistan , everything is in India's favour :)
 
India has higher gdp per capita than pak
Care to elaborate on ur second point??

IMF statistics world per capita (PPP) gdp. April 11, 2011

India - 3,339 $

Pakistan - 2,791 $


World Bank statistic per capita (PPP) gdp. April 13, 2011


India - 3,270 $

Pakistan - 2,609 $



Average_GDP_PPP_per_capita_2010.svg



http://upload.wikimedia.org/wikipedia/commons/9/99/Average_GDP_PPP_per_capita_2010.svg


World map showing countries above and below the world GDP (PPP) per capita, currently $10,700. Source: IMF (International Monetary Fund).
Blue above world GDP (PPP) per capita
Orange below world GDP (PPP) per capita

________________________________________________________________________________________


GDP - per capita (PPP) 2011 Country Ranks, By Rank


Rank 128 India - 3,400 $ 2010 est.

Rank 135 Pakistan - 2,400 $ 2010 est.


http://www.photius.com/rankings/economy/gdp_per_capita_2011_0.html
 
Problems which we are facing if put on India, you could see how quickly India disperse, we have lot of issues as key hurdles in our economic growth but no doubt that there is much potential to compete India & this is not problem.
Being as realistic i didn't deny that unfair government policies are giving negative results and main politics and more over strategic issues. Till we will not regulate or solve these key matters, to compete any country in trade or economics will be unrealistic idea.

Flimsy piece of imagination.Most of ur problems r due to the absence of strong democratic gov. at the center.Almost all the problems ur facing r ur own creations.
I concur with the rest.
 
Please remember things like decades of externally supported insurgency in Kashmir since 1989 when India was going bankcrupt and was not an economic power. I remember a time not long ago when we use to hear bombs going regularly in India. Dont forget Delhi's bombing, Mumbai Local Train Bombings, German Bakery Bomb etc. It was only after 26/11 that our goverment took a hardline stance and since then we have been seeing a peace. But Maoist insurgency is still on and will take some time to settle. We also had problems like ULFA but our goverment took policies to end it.
You may say we are economically strong and will survive, but we have also had a rough history. Our goverments both BJP and Congress no matter how divided they are have still functioned under democracy. Not once have we seen a martial law.
This is the reason India stands where it is today. The day you have a sound and able democratic goverment with no interference of armed forces, you will also prosper.

Most unrelated post in this thread.

You are calling those as problems? Ok you are free to think, anyway not comparable even 30 % of situation we are facing & still stand a bit little difference in per capita gdp world rate. (go to first link of my Post no 18, gdp map and realize where you stand) Just for your knowledge.
 
Yeah and how long did it last??
We were blessed with some really gud leaders early on,and democracy enabled them to handle most of the problems succesfully.
 
Flimsy piece of imagination.Most of ur problems r due to the absence of strong democratic gov. at the center.Almost all the problems ur facing r ur own creations.
I concur with the rest.

Ignorance from reality, i have nothing more to say, meanwhile India hasn't growth rate where you have to be proud and put finger over us. Check statistics and links in my post no 18.
 
Most unrelated post in this thread.

You are calling those as problems? Ok you are free to think, anyway not comparable even 30 % of situation we are facing & still stand a bit little difference in per capita gdp world rate. (go to first link of my Post no 18, gdp map and realize where you stand) Just for your knowledge.

Why do you say it is unrelated. If i ask you of Pakistan's problem today. You would say.

1.Balochistan (External)
2. American Influence
3. TTP - causing daily bomb blasts

I just gave a few examples of major terrorist attacks we faced not so long ago. Many times it is highlighted how many separatist movements we face. Do you consider even after that how can we achieve a 9-10% gdp growth. We focussed on our economy through our policies and for that a strong goverment with no outside interference is needed,
 
Ignorance from reality, i have nothing more to say, meanwhile India hasn't growth rate where you have to be proud and put finger over us. Check statistics and links in my post no 18.
Actually i did see them.We were once behind u in that area,and then we caught up and the gap is increasing.
I am definitely proud ,but yeah i want "put a finger on u" if u wont.
 
Revival and encouragement of small scale industries, proper management of micro finances, taking care of the farmers who are blessed with a fertile land, better corruption control, less radicalisation of the society , finding new partnerships and finding newer trade partners and getting their trust, better utilisation of an excellent English speaking community to make use of service industry and removing religion from state can make you guys work wonders and travel places.
 

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