Islamabad looks to India to aid economy - FT

[KHIte]

rofl, look at the title

 

[GOD OF WAR]

Has Pakistan exploited all other avenues to bump ups its economy and growth rate? Have we optimized trade between all other possible potential client countries of the world? What about Russia? What about China, What about US and the EU? what about Far East and Middle East. Kya ley dey ke Bharat hi reh gaya hey??? And most importantly have we every given the conglomerate of the ECO a fair chance to blossom?

Trade with India might cause a transitory levitation but in the long run Pakistan will be the looser and India will benefit much. While people argue that the 10 times bigger size/population of India will benefit us. And if India sells us 10 products and we sell India only 2 even then Pakistan will be the bigger beneficiary. This assumption is a farce. Even if one shrugs off the security hazards that will accompany from trade with India, Pakistani product will never ever be able to compete in the Indian market due to the fact that the manufacturing costs involved in Pakistan are too high for competition.

The secret lies in facilitation to the manufacturers, and subsidiaries to the agriculture sector. China and India are doing this coupled with many other countries. The returns in the shape of forex will supersede the cost of subsidization. Energy is our main problem, if the many unexploited wells at Sui are used we won’t even require Iranian gas. (Only 1 of those 3 virgin wells have over 100 years of gas according to conservation calculations). Either projects need funding from an international financial institution and serious management. By achieving this we can support our manufacturers in real terms.

A partially closed economy is the dire need of Pakistan, not an open economy, whose width can be compared to that of the German Autobahn. Pakistanis must be forced to use Pakistani goods. Import policy need severe redressing to create semblance between import/export ratios. Why does our import policy allow import of luxury cars and Kellog cornflakes and a horde of other items that we just don't need? While it is true that the wretched WTO does come into play but it can be dealt with provided government shows sincerity.

The case of Pakistan exploiting Indian market is that of ‘being ready for the opportunity’. We are not ready, hence this opportunity is not for us to gloat about. Unfortunately Pakistan planners have debauched honesty and national pride by the prospect of easy money.

Can some one compile a list of items that both countries are looking to export to each other?

 

[venu309]

This is a very good step for peace because if people from both the countries have business interests & investments in each other country then they would not want any form of unrest & destruction in that country as this would ultimately affect their business interests.

 

[RoYaL~GuJJaR]

Good Good

 

[internal]

Islamabad looks to India to aid economy - FT.com

This news reminds me this song.

 

[internal]

This news reminds me this song.

and this one...

 

[internal]

Just over the border, India’s economy is growing at about 8 per cent a year.

This article is hyperbole.indian econmy is not growing rather declining .this year its GDP has been downgraded to less than 7.5% and its export growth figures are contested to be fake and manipulated data

 

[Vibs]

Makes sense....despite being rivals for decades there has been a constant exchange of business transactions between the two parties via Dubai,Yemen etc etc. The gulf has minted money for just the work of routine paperwork and container routing. Most of the exchange happens due to cultural similarities and limited language barriers involved.
WHile I have serious doubts over the success of this kind of engagement, if it does work out, it would auger well for both countries. If the French and the English can get along after centuries of war I don't see why we can't do the same.

 

[Vibs]

This article is hyperbole.indian econmy is not growing rather declining .this year its GDP has been downgraded to less than 7.5% and its export growth figures are contested to be fake and manipulated data

Here is a little A-B-C of economics for you.
There is a difference between declining economy (negative growth rate) and declining growth rate (slower growth rate but at 7.5% still very prominent).
GDP has not been downgraded, please look up GDP for definition. Once again, growth rate has been downgraded. Still better than most of the world.
Export growth figures are not randomly generated internally. The export reports should tally with the importing country's import records for the growth to be acknowledged in reports.
Exports for India do not account for a major part of the GDP. It's still driven a lot by domestic demand.
Got anything else?

 

[Vibs]

Has Pakistan exploited all other avenues to bump ups its economy and growth rate? Have we optimized trade between all other possible potential client countries of the world? What about Russia? What about China, What about US and the EU? what about Far East and Middle East. Kya ley dey ke Bharat hi reh gaya hey??? And most importantly have we every given the conglomerate of the ECO a fair chance to blossom?

Trade with India might cause a transitory levitation but in the long run Pakistan will be the looser and India will benefit much. While people argue that the 10 times bigger size/population of India will benefit us. And if India sells us 10 products and we sell India only 2 even then Pakistan will be the bigger beneficiary. This assumption is a farce. Even if one shrugs off the security hazards that will accompany from trade with India, Pakistani product will never ever be able to compete in the Indian market due to the fact that the manufacturing costs involved in Pakistan are too high for competition.

The secret lies in facilitation to the manufacturers, and subsidiaries to the agriculture sector. China and India are doing this coupled with many other countries. The returns in the shape of forex will supersede the cost of subsidization. Energy is our main problem, if the many unexploited wells at Sui are used we won’t even require Iranian gas. (Only 1 of those 3 virgin wells have over 100 years of gas according to conservation calculations). Either projects need funding from an international financial institution and serious management. By achieving this we can support our manufacturers in real terms.

A partially closed economy is the dire need of Pakistan, not an open economy, whose width can be compared to that of the German Autobahn. Pakistanis must be forced to use Pakistani goods. Import policy need severe redressing to create semblance between import/export ratios. Why does our import policy allow import of luxury cars and Kellog cornflakes and a horde of other items that we just don't need? While it is true that the wretched WTO does come into play but it can be dealt with provided government shows sincerity.

The case of Pakistan exploiting Indian market is that of ‘being ready for the opportunity’. We are not ready, hence this opportunity is not for us to gloat about. Unfortunately Pakistan planners have debauched honesty and national pride by the prospect of easy money.

Can some one compile a list of items that both countries are looking to export to each other?

There doesnot seem to be a list per say.
But indications are that Indian pharma and car manufacturers would be interested in Pakistan.
Pakistan has been exporting a lot of RM in terms of agro and forest goods as well as petrochemicals through agencies in the gulf. I would expect those to be coming in via direct trade if things settle down.

 

[SQ8]

Excellent development..
Once this picks up, along with low key exercises and "friendship" programs between the two militarizes..
there may be a bright sunshiny day ahead.

 

[Cheetah786]

manmohan singh will be more then happy to oblige

If it wasn't for Dr Singh you still be stuck economically in the same hole we are in so bit of a respect for the guy who turned your country around would be a smart start.

 

[GOD OF WAR]

There doesnot seem to be a list per say.
But indications are that Indian pharma and car manufacturers would be interested in Pakistan.
Pakistan has been exporting a lot of RM in terms of agro and forest goods as well as petrochemicals through agencies in the gulf. I would expect those to be coming in via direct trade if things settle down.

Just the things Pakistan DOES NOT need to import. Agro and Forest goods eh?? As far as I know, India is better sufficient than Pakistan to meet her own agro based needs. So, that's a no-go.

Somebody told me today that the Indians have expressed desire to buy 'chuwarey' from Pakistan. And the thought of it is still making me laugh

There is no viable balance of trade between Pakistan and India, there's no way.... Even if strictly economically viewed

 

[Vibs]

Just the things Pakistan DOES NOT need to import. Agro and Forest goods eh?? As far as I know, India is better sufficient than Pakistan to meet her own agro based needs. So, that's a no-go.

Somebody told me today that the Indians have expressed desire to buy 'chuwarey' from Pakistan. And the thought of it is still making me laugh

There is no viable balance of trade between Pakistan and India, there's no way.... Even if strictly economically viewed

Firstly..what in the world is Chuwarey?

Secondly...India does face a shortfall in agro goods every year and believe it or not a lot of it is then met by imports from Pakistan. Just 1 case, look at the onions case study earlier this year. Frankly, the imports did make life much easier around here interms of prices.
Forest goods are routed through PAkistani businesses located at Yemen. The advantage these firms have there is less objection fromIndian authorities and the possibilities of exploiting African sources of forest produce too. Could easily be routed through Karachi.
Pharma and cars, there is a huge grey/blackmarket of importing Indian cars and pharma in Pakistan. And Indian Pharma does have high end drugs applications that could help the Pakistani market. But as far as regular OTC drugs go,you're right,imports may tend to push the local Pakistani producers.

---------- Post added at 05:43 PM ---------- Previous post was at 05:42 PM ----------

If it wasn't for Dr Singh you still be stuck economically in the same hole we are in so bit of a respect for the guy who turned your country around would be a smart start.

Surprised to say this myself..but could not agree more

 

[illusion8]

There doesnot seem to be a list per say.
But indications are that Indian pharma and car manufacturers would be interested in Pakistan.
Pakistan has been exporting a lot of RM in terms of agro and forest goods as well as petrochemicals through agencies in the gulf. I would expect those to be coming in via direct trade if things settle down.

India faces a shortage of cement and sugar, Pakistan can export considerable amounts to India.