Internews/Karachi
Pakistani industrialists and business community have reacted positively to the cabinet’s decision to grant India the Most Favoured Nation (MFN) status, though they did have some reservations.
Trucks carrying Pakistani commodities for Indian traders arrive at Pakistan-Indian Wagah border, near Lahore, yesterday. Pakistan has decided to enhance trade ties with India by granting it Most Favoured Nation status
The business community underlined the difficulties being faced by Pakistani exporters in face of non-tariff barriers in India which must be removed to improve trade between the two countries.
Industrialists said the MFN decision would help increase trade between Pakistan and India especially after the removal of obstacles like non-tariff barriers and visa restrictions.
They said the opening up of trade with neighbouring India would reduce Pakistan’s dependence on European and American markets and Pakistan can focus on emerging regional markets including China.
Karachi Chamber of Commerce and Industry (KCCI) president Mian Abrar Ahmed said the decision would favour Pakistan more because “we will get a big market of over 1bn while we are giving them a relatively smaller market of 180mn people”.
“Pakistan is blessed that it has two fastest growing economies of the world as its neighbours where the developed countries are coming to invest,” he said, adding, “We should make the most of this opportunity and try to grab more market share in India like other countries of the world.”
Former president of Sarhad Chamber of Commerce and Industry Sharafat Ali Mubarak said, “Trade would only benefit both countries when both have equal tariff structures that do not favour any single country”.
“Pakistan can import auto parts from India that we import from Japan and other Asian countries at present.
In addition, we can also take help of Indian expertise in IT and technology,” he said, adding: “but even after all this a lot depends on how sincere both countries are to help each other in trade and commerce”.
“Pakistan should also make sure that we do not turn into a dumping ground of Indian goods. We need to develop our industry where we have edge over India,” he cautioned.
Korangi Association of Trade and Industry Chairman Ehteshamuddin said that “our rupee is half of Indian rupee against the US dollar, which is an edge for our exporters to grab a large market share in the big Indian market”.
“Instead of depending on our old markets like Europe and the United States, Pakistani exporters should look towards Asian economies especially India and China,” he said.
