India moves to improve trade with Pakistan

[ameer219]

India moves to improve trade with Pakistan

ISLAMABAD:

In a bid to improve trade with Pakistan, which is valued at $50 million annually, India is establishing a checkpost on the Wagha border.

A Pakistani delegation will leave for Attari, India, in the coming days to meet Indian authorities on March 25 to chalk out a strategy for construction of infrastructure along border areas to facilitate traders.

According to a senior official of the Ministry of Interior, the checkpost will become operational from April. “It will be built on no man’s land at the Wagha border to boost trade between the two countries,” he informed.

Representatives of both countries will also discuss deployment of soldiers on the checkpost as well as increasing the strength of the currently deployed forces on various checkposts, said the official.

Observers believe that the establishment of a new integrated checkpost appears to be a major move from the Indian side in its bid to export goods to Afghanistan via Pakistan.

Pakistan and Afghanistan signed a historic memorandum of understanding (MoU) in 2009, which allowed Kabul to export its goods to India via Pakistan. However, Pakistan has not yet allowed its territory to be used for export of Indian goods to Afghanistan.

India will spend up to Rs2 billion on the checkpost due to its importance to Indian traders and businessmen. Officials expressed hope that establishment of the integrated checkpost will lead to promotion of trade and business between Pakistan and India.

At the meeting, which is to be attended by seven officials from various ministries, the delegation will request Delhi to remove non-tariff barriers to facilitate Pakistani businessmen who wish to export goods to Indian cities.

Currently, Pakistan imports products such as fruits, vegetables, cotton and maize from India, but is unable to export high quantities due to presence of non-tariff barriers.

According to officials, India, which exported goods worth Rs15 billion to Pakistan in the last two years, is interested in establishing more checkposts to facilitate traders of both countries.

Published in The Express Tribune, March 18th, 2011.
India moves to improve trade with Pakistan – The Express Tribune

 

[CLIPPER4LIFE]

Good move hopefully trade will stop future wars ;P

 

[Veritas]

For Pakistan to exploit its fullest economic potential its has to economically plug-in with the economy of Northern India. That has been the way for thousands of years, I do not see it changing.

The highest concentration of Pakistani population is close to Indian border, It is in the best interest of Pakistan in general and Punjab province in particular to heavily engage economically with India.

 

[Jackdaws]

To be honest, I don't see how trade with Pakistan is economically a game-changer for India. It brings in some business - sure but is quite negligible in the grand scheme of things.

 

[Leader]

PAKistani Nation was declared the most favourite Nation by India a couple of years back. India has tried other route options, worked on them, even invested hell lot of good money...but it still aint cost effective...so here we go.... back on line.....

 

[CLIPPER4LIFE]

To be honest, I don't see how trade with Pakistan is economically a game-changer for India. It brings in some business - sure but is quite negligible in the grand scheme of things.

Yes true trade with Pakistan will not bring a lot of immediate growth, but it will create jobs In The northern areas of India, The punjab areas in INdia ( i dont know their names sorry ;P) and the province in Gujurat. This will also help some of the 400 million people below the poverty line in your country. Though trade with Pakistan is very important, because through Pakistan India can go to the Central Asian countries that will be a big market. also it can go through IRAN AND TURKEY (once a rail link is constucted) these markets will b e huge, and India will not help their economy, but many other countries economy also, so peace in South Asia might hapen

 

[Jackdaws]

Yes true trade with Pakistan will not bring a lot of immediate growth, but it will create jobs In The northern areas of India, The punjab areas in INdia ( i dont know their names sorry ;P) and the province in Gujurat. This will also help some of the 400 million people below the poverty line in your country. Though trade with Pakistan is very important, because through Pakistan India can go to the Central Asian countries that will be a big market. also it can go through IRAN AND TURKEY (once a rail link is constucted) these markets will b e huge, and India will not help their economy, but many other countries economy also, so peace in South Asia might hapen

I doubt it will help more than 1 million, let alone 400 million. Only higher end industries would benefit and they generally tend to provide lesser employment opportunities.

 

[President Camacho]

Economically, India is way stronger than Pakistan, thus, such trade volume will make a solid ground for India to exert influence in the business circles of Pakistan. I don't understand how large amount of trade with India is going to benefit Pakistan.

 

[CLIPPER4LIFE]

Economically, India is way stronger than Pakistan, thus, such trade volume will make a solid ground for India to exert influence in the business circles of Pakistan. I don't understand how large amount of trade with India is going to benefit Pakistan.

Well not through direct trade with Pakistan as Pakistan produces mostly the same things that India produces. India does need Pakistan for Transit trade purposes for markets in Central Asia + Iran and Middle East

 

[Jackdaws]

Economically, India is way stronger than Pakistan, thus, such trade volume will make a solid ground for India to exert influence in the business circles of Pakistan. I don't understand how large amount of trade with India is going to benefit Pakistan.

It would help in fields like health - Indian medicines being cheap and mass produced would make healthcare affordable to many Pakistanis. Similarly for the auto industry. BPO too perhaps.

 

[President Camacho]

It would help in fields like health - Indian medicines being cheap and mass produced would make healthcare affordable to many Pakistanis. Similarly for the auto industry. BPO too perhaps.

Jackdaws, you seem to be of the idea that a poor man getting treated with a subsidized medicine is the biggest beneficiary of the trade. He benefits, for sure, but even bigger benefit goes to the dealers and transporters of the commodity. Hence, when in any dire situation if the trade were to be stopped citing problems from Pakistan's side, the ones most affected will be these rich traders and transporters in Pakistan, and they will certainly try their best to lobby against the actions of Pakistani Government to allow the business to run as usual, in turn, favoring India.

However, the same will not be true in India, since India's main trade takes place between China/Russia/USA etc. Indian traders who do business with their Pakistani counterparts will never have a lobby strong enough to pressure the government/any institution in India.

 

[BATMAN]

Economically, India is way stronger than Pakistan, thus, such trade volume will make a solid ground for India to exert influence in the business circles of Pakistan. I don't understand how large amount of trade with India is going to benefit Pakistan.

Corrupt regime of Pakistan is already importing indian goods duty free....
I wonder how does legal trade agreement is going to help them?

Secondly.. one way trade is unfair and indians don't buy Pakistani goods.

 

[r3alist]

Economically, India is way stronger than Pakistan, thus, such trade volume will make a solid ground for India to exert influence in the business circles of Pakistan. I don't understand how large amount of trade with India is going to benefit Pakistan.

exactly this.

india is trying to increase its influence in pakistan, probably with a longer term view to soften pakistan up for access into the central asian market where the real money is.

 

[Veritas]

Corrupt regime of Pakistan is already importing indian goods duty free....
I wonder how does legal trade agreement is going to help them?

Secondly.. one way trade is unfair and indians don't buy Pakistani goods.

If there is a trade agreement, if Pakistan produces goods of better quality and/or cheaper, nothing will stop Indians from buying them. Stop FUD(Fear, Uncertainity and Doubt).

 

[mautkimaut]

Corrupt regime of Pakistan is already importing indian goods duty free....
I wonder how does legal trade agreement is going to help them?

Secondly.. one way trade is unfair and indians don't buy Pakistani goods.

what can we buy from Pakistan?

We already import vegetables and cement from Pakistan.