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MFN status to India will put 70pc rural jobs at stake

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MFN status to India will put 70pc rural jobs at stake


LAHORE - Jobs of almost 70 per cent population of the rural areas of the country are at risk due to granting of MFN status to India, said former chairman of Pakistan Poultry Association Abdul Basit on Friday.

While talking to TheNation here, Basit, who is also chairman of the Big Bird Group of Companies, has suggested Islamabad to impose regulatory duty on Indian goods so that Pakistani growers could compete with their Indian counterparts, who are availing higher subsidy by the Indian government. He said that Pak-India trade would benefit the Indians only, calling it ‘one sided trade’. He said generating jobs opportunities should be the top priority of the government, as it will enhance the purchasing power of consumers.

He opposed the MFN status to India and feared a deep rooted conspiracy on the part of India to cripple down Pakistan’s economy. According to him, India is working on multi-dimensional strategy under the garb of bilateral trade. The government should take all the stakeholders into confidence before moving ahead, he said.

He said that Kashmir problem and water issues are yet unresolved and demand attention before granting MFN status to India. He termed extension of MFN status to India as a serious matter, pointing out that the government has taken the decision in haste.

New Delhi provides around $30 billion annual subsidy to its farming community, which gives them huge advantage over Pakistan, said Basit, who is also ex-SVP of the LCCI.

He said that urea price in India is 280 Indian rupees per bag, equivalent to around 500 Pakistani rupees. The price of urea in Pakistan is Rs1,800 per bag. He said India is giving huge subsidies on urea. He said DAP rate in Pakistan is Rs4000-Rs4200 per bag, but it is sold in India at 920 Indian rupees, equivalent to 2000 Pakistani rupees. He said these two important fertilisers are the main input in all crops, particularly wheat.

He said that cotton farmers would face an uphill task to sell their produce to spinners as the cost of cotton production in India is much lower due to huge government subsidies. He said Indian govt is taking only Rs1700 per month electricity bill from the farmers for tube-wells and in our country up to Rs150,000 electricity bill is common.

Basit said diesel and power rates for farmers in India are very low and in some states farmers pay Rs1 per unit against Rs6.68 paid by Pakistani farmers. He said in case of wheat, farmers use three bags of urea and one bag of DAP per acre. He said a Pakistani farmer spends Rs5,600 on application of urea and Rs4,300 on DAP per acre. In India, the cost of both fertilisers for wheat crop is merely 2,443 Pakistani rupees, he said.

He said even the higher support price of wheat in Pakistan fails to bridge the difference. He said the support price of wheat in Pakistan is Rs950 per maund, while in India it is 818 Pakistani rupees per maund. This lower support price is compensated by the low electricity and diesel costs, he said.
“In free trade with India , we might see Indian wheat capturing Pakistani market at the expense of local farmers.”

“India subsidises its agriculture to the tune of $30 billion, while in Pakistan there is 16 percent general sales tax (GST) on all inputs along with the recently imposed gas infrastructure cess,” he said.

He said basmati exported from Pakistan was re-packed in the Gulf by traders and sold as a product of Indian origin.

He viewed that Indian exports were rising without MFN status whereas Pakistani exports have seen downward trend despite having MFN status, as the Pakistani exporters cannot get access to Indian markets because of the non-tariff barriers created by Indian bureaucracy.

The Pak-India bilateral trade particularly through Wagha border route is only benefiting India, as 31,897 truckloads worth Rs21 billion reached Pakistan while only 4,664 trucks, having goods of Rs1.33 billion, were sent to India during fiscal year 2010-11, they added. He predicted that Islamabad would have zero benefit out of this move in the shape of adverse impact on local industry.



?MFN status to India will put 70pc rural jobs at stake? | The Nation
 
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MFN status to India will put 70pc rural jobs at stake


LAHORE - Jobs of almost 70 per cent population of the rural areas of the country are at risk due to granting of MFN status to India, said former chairman of Pakistan Poultry Association Abdul Basit on Friday.

While talking to TheNation here, Basit, who is also chairman of the Big Bird Group of Companies, has suggested Islamabad to impose regulatory duty on Indian goods so that Pakistani growers could compete with their Indian counterparts, who are availing higher subsidy by the Indian government. He said that Pak-India trade would benefit the Indians only, calling it ‘one sided trade’. He said generating jobs opportunities should be the top priority of the government, as it will enhance the purchasing power of consumers.

He opposed the MFN status to India and feared a deep rooted conspiracy on the part of India to cripple down Pakistan’s economy. According to him, India is working on multi-dimensional strategy under the garb of bilateral trade. The government should take all the stakeholders into confidence before moving ahead, he said.

He said that Kashmir problem and water issues are yet unresolved and demand attention before granting MFN status to India. He termed extension of MFN status to India as a serious matter, pointing out that the government has taken the decision in haste.

New Delhi provides around $30 billion annual subsidy to its farming community, which gives them huge advantage over Pakistan, said Basit, who is also ex-SVP of the LCCI.

He said that urea price in India is 280 Indian rupees per bag, equivalent to around 500 Pakistani rupees. The price of urea in Pakistan is Rs1,800 per bag. He said India is giving huge subsidies on urea. He said DAP rate in Pakistan is Rs4000-Rs4200 per bag, but it is sold in India at 920 Indian rupees, equivalent to 2000 Pakistani rupees. He said these two important fertilisers are the main input in all crops, particularly wheat.

He said that cotton farmers would face an uphill task to sell their produce to spinners as the cost of cotton production in India is much lower due to huge government subsidies. He said Indian govt is taking only Rs1700 per month electricity bill from the farmers for tube-wells and in our country up to Rs150,000 electricity bill is common.

Basit said diesel and power rates for farmers in India are very low and in some states farmers pay Rs1 per unit against Rs6.68 paid by Pakistani farmers. He said in case of wheat, farmers use three bags of urea and one bag of DAP per acre. He said a Pakistani farmer spends Rs5,600 on application of urea and Rs4,300 on DAP per acre. In India, the cost of both fertilisers for wheat crop is merely 2,443 Pakistani rupees, he said.

He said even the higher support price of wheat in Pakistan fails to bridge the difference. He said the support price of wheat in Pakistan is Rs950 per maund, while in India it is 818 Pakistani rupees per maund. This lower support price is compensated by the low electricity and diesel costs, he said.
“In free trade with India , we might see Indian wheat capturing Pakistani market at the expense of local farmers.”

“India subsidises its agriculture to the tune of $30 billion, while in Pakistan there is 16 percent general sales tax (GST) on all inputs along with the recently imposed gas infrastructure cess,” he said.

He said basmati exported from Pakistan was re-packed in the Gulf by traders and sold as a product of Indian origin.

He viewed that Indian exports were rising without MFN status whereas Pakistani exports have seen downward trend despite having MFN status, as the Pakistani exporters cannot get access to Indian markets because of the non-tariff barriers created by Indian bureaucracy.

The Pak-India bilateral trade particularly through Wagha border route is only benefiting India, as 31,897 truckloads worth Rs21 billion reached Pakistan while only 4,664 trucks, having goods of Rs1.33 billion, were sent to India during fiscal year 2010-11, they added. He predicted that Islamabad would have zero benefit out of this move in the shape of adverse impact on local industry.



?MFN status to India will put 70pc rural jobs at stake? | The Nation

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INDIAAAAAAAAAAAAAAAAAAa...............................
 
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Nothing but BS. What type of rural jobs he is talking about agriculture??

Rural areas don't have jobs, electricity that's why people migrates to cities all over the world.

When he can't say anything about urban jobs he is talking about rural jobs out of thin air. :tdown:
 
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They only mention subsidies but Indian government also fixes prices for these farm outputs. Indian farmers cannot withhold their produce. They cannot sell them at competitive prices because GOI fixes the price for them.
 
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him demanding that Kashmir and water issues be settled first shows his mentality . if you want to move ahead with peace sometimes you need to put contentious issues o the back burner and concentrate on building relations .

the best case and point are the Indo _China relations. even when we had problems with our borders we tried our hand at trade and other strengthening methods. as a result the trade today stands at 75 billion , and though there are still issues with the borders, we are able to sit and work them out.
 
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Free trade has never hurt any country or ever put jobs at risk. All the benefits from recent experience in the EU, Asian etc., are there for everyone to see.

Free trade encourages efficiency and provides a greater market coverage to your goods. There would always be some minor adjustments and inefficient practices would have to go. This article is feeding on’ False’ fears of Indian domination. Besides, MFN Status doesn’t mean that it is a free for all. Gov’t always analyse each sector of the economy and tariff reductions are adjusted.

I am all for MFN status to Indian goods as long as we get the same back from India. Recently, one of my friends who has a small ‘Hosiery’ unit in Pakistan informed me that small print in the agreement need to be looked into carefully. Minor Indian bureaucrats are extremely anti Pakistani and these people sitting at Custom Check Points will try to ensure that Pakistan gets the worst interpretation possible.

Therefore no objections to Indian MFN Status as long as Pakistan get the same from Indians in letter as well as in spirit.
 
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Free trade has never hurt any country or ever put jobs at risk. All the benefits from recent experience in the EU, Asian etc., are there for everyone to see.

Free trade encourages efficiency and provides a greater market coverage to your goods. There would always be some minor adjustments and inefficient practices would have to go. This article is feeding on’ False’ fears of Indian domination. Besides, MFN Status doesn’t mean that it is a free for all. Gov’t always analyse each sector of the economy and tariff reductions are adjusted.

I am all for MFN status to Indian goods as long as we get the same back from India. Recently, one of my friends who has a small ‘Hosiery’ unit in Pakistan informed me that small print in the agreement need to be looked into carefully. Minor Indian bureaucrats are extremely anti Pakistani and these people sitting that Custom Check Points will try to ensure that Pakistan gets the worst interpretation possible.

Therefore no objections to Indian MFN Status as long as Pakistan get the same from Indians in letter as well as in spirit.

I don't agree with you on this completely... China has done a lot of damage to many countries including Pakistan ... in pakistan they called it "friendly fire". a lot of small scale industries have been collapsed. Better to prepare a negative list by closely examine your deficiencies in certain sectors. You can always put on brakes. :tup:
 
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Although I appreciate niaz's view on MFN status to India and his concerns on interpretation, I don't agree with his points on free trade. Free trade will improve efficiency. But at what cost? Sometimes they wipe off local industry causing more serious problems like unemployment, poverty and lower standard of living. Ask Detroit, Pakistani sports goods manufacturers(probably the effect of China is not yet completely felt), American service industry(now even in finance, most people are Asian or Indian), and so many Euro countries which lost their manufacturing industry to Germany.
If you see the world as a black box producing some output, then yes, you get efficiency. If you are willing to let people die in the natural selection process, then all is well. But then they are people.

---------- Post added at 12:00 PM ---------- Previous post was at 11:57 AM ----------

Free trade has never hurt any country or ever put jobs at risk. All the benefits from recent experience in the EU, Asian etc., are there for everyone to see.
I would like a clarification on this. Free trade never hurt any country?!!
 
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urea price in India is 280 Indian rupees per bag, equivalent to around 500 Pakistani rupees. The price of urea in Pakistan is Rs1,800 per bag. :butcher: He said India is giving huge subsidies on urea. He said DAP rate in Pakistan is Rs4000-Rs4200 per bag, but it is sold in India at 920 Indian rupees, equivalent to 2000 Pakistani rupees. He said these two important fertilisers are the main input in all crops, particularly wheat.

bloody hell why is pak getting ripped off here ... fertilizer prices are 6 times higher in Pakistan no wonder why food prices are hitting the roof ...
 
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He said that Kashmir problem and water issues are yet unresolved and demand attention before granting MFN status to India.
Ah! The bl00dy 'K' word again!! Jeeez! For clowns like him, until India hands over Kashmir to Pakistan on a silver platter, transfers all the rivers of the Indus to them, stops building dams, diverts the waters of the Brahmaputra to Pakistan, hands over Siachen to the PA and Sir Creek to the Pakistan Navy, trade with India is a no no!

This guy Abdul Basit sells EGGS for crying out loud!! His cackle is all c0ck! :toast_sign:
 
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bloody hell why is pak getting ripped off here ... fertilizer prices are 6 times higher in Pakistan no wonder why food prices are hitting the roof ...

medicine prices are lower in india.so if trade opens then indian pharma and auto industry will eat the local industry:enjoy:
 
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