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India blocks chemicals import from Pakistan
By Parvaiz Ishfaq Rana
KARACHI, Dec 27: Pakistani business leaders expressed frustration over the attitude of Indian authorities towards imports from Pakistan.
Strong demand for certain Pakistani chemicals, particularly soda ash in Indian market also became a victim of protective trade barriers of Indian authorities looking for excuse to discourage imports from Pakistan, a businessman told Dawn.
Industry sources revealed that the Indian authorities have announced to impose anti-dumping duty on imports of soda ash from Pakistan from March next.
There is strong resentment amongst the trade and industry circles over the announcement because India enjoys favourable balance of trade with Pakistan. It has repeatedly demanded the status of the Most Favoured Nation (MFN), the position it has given to Pakistan.
The reality defies all their claims and gestures. India frequently blocked imports from Pakistan using non-tariff barriers (NTBs), a chemical manufacturer said.
Pakistan used to import soda ash from India to meet industrial demand but since last two years the situation changed and now Indian importers look across the border to meet the demand of their industry located in the north.
Industry sources said that Indian importers were benefiting from freight advantage because of geographical proximity and all imports of soda ash ware made through Wagha border.
Two major producers are presently involved in exports from Pakistan.
The currency parity advantage was also being enjoyed by the Indian importers on getting chemicals at cheaper price from Pakistan, said Muhammad Haroon Agar, the chairman Pakistan Chemicals & Dyes Merchants Association (PCDMA).
Strong Indian rupee against US dollar has made their exports costly as the parity today stands at 45 rupees to a dollar whereas Pak rupee stands at around 86 to a dollar, therefore, imports from Pakistan are cheaper, he added.
The Indian authorities are also delaying the renewal of certification by Bureau of Indian Standards (BIS) for import of cement from Pakistan. This is also a living example of how Indians use NTBs against Pakistani imports.
A leading cement exporter Amjad Rafi said that under bilateral agreement two to three trains were supposed to run between the two countries per day. However, for long 45 freight trains per month were engaged having a loading capacity between 1,800 to 2,000 tons.
But for the last three months only 18 to 19 train exchanges were made per month. As a result cement export to India also suffered badly.
Similarly, since 2007 bilateral agreement not a single Pakistani truck moved across into India whereas even today around 100 trucks daily move into Pakistan loaded with all sort of consumers goods, including vegetables and fruits, he added.
