FDI from Pakistan to India

Oracle

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India throws open FDI window for Pakistan as warmth sets in

TNN | Apr 13, 2012, 11.59PM IST | Times of India

NEW DELHI: Suddenly, the horizon in the neighbourhood appears to be brightening. For the first time ever, India on Friday decided to allow foreign direct investment (FDI) from Pakistan - a step that signals growing warmth in the relations between the two nuclear-armed neighbours.

Until now, Pakistan was the only country from where FDI was not allowed. The decision to allow FDI may not lead to an immediate rush of investments from Pakistan, but it does show that the two sides are now eager to do business and significantly raise the level of trade and economic engagement between them. "India has taken an in-principle decision as part of trade normalization process to allow foreign direct investment from Pakistan," commerce, industry and textiles minister Anand Sharma told a news conference here after a meeting with his Pakistani counterpart Makhdoom Amin Fahim. "Procedural requirements are underway and it will be notified soon," Sharma said.

No further details were available but officials had earlier told TOI that after the rules are amended, investments can come through the foreign investment promotion board (FIPB) route into sectors where foreign investment is allowed.

FIPB has representatives from all ministries, including home, and scrutinizes proposals which are referred to it. "As confidence levels rise, you will see more companies willing to set up ventures in both countries. Initially companies will prefer trading," said a senior government official, who did not wish to be identified.

Right now, the focus is on trade and sectors like tourism, education, health and hospitality. Opening up trade and investment is likely to cut down the illegal trade between the two sides which is estimated to be worth $10 billion (the official trade is currently only $2.7 billion). This illegal trade, routed mainly via Dubai and Singapore, is now expected to be officially routed.

Government leaders hope that progress in these areas will generate greater confidence in each other which, in turn, will lay the basis for some meaningful political breakthrough in bilateral relations. "Economic cooperation and mutual gain are often the basis for building political trust. If there's a stake in the ties, no one wants to rupture them," said a senior official.

Anand Sharma said both sides are keen to open bank branches and discussions are on to thrash out details. "The Reserve Bank of India (RBI) and the State Bank of Pakistan are talking to each other," he said.

Fahim, who is in India as part of the trade talks between the two countries, said there has been progress for allowing banking services and both sides were engaged in discussions to take it forward. Pakistan has organized a 'Lifestyle Show' in New Delhi as part of the ongoing process of enhancing trade ties.

Sharma said the two sides have decided to initiate discussion on cooperation on tourism, hospitality and education. They have also decided to set up the India-Pakistan Business Council with co-chairs from both sides. He said the contours of the council would be announced soon. He added that India and Pakistan have agreed in principle to ease visa rules for business travel.

The two sides have agreed on one-year, multiple-entry visas and an agreement is expected soon. Pakistan agreed to normalize trade and moved closer last month to granting most-favoured nation (MFN) status to India by switching to a system of "negative lists" that will restrict the import of around 1,200 items from India, compared to the earlier regime where only 1,900 products were permitted to be shipped across the border.

Sharma said opening up of business between the two neighbours will shut trade through third countries and benefit both countries. "India is a very big market and Pakistan's economy will benefit. We will increase connectivity for easier commodity trade," he said.

Experts say huge potential exists for increasing trade from the current level of $2.7 billion and some estimates it can be raised to $10 billion. India and Pakistan also opened the second gate at the Attari-Wagah border which is expected to boost the flow of trade.

Source: India throws open FDI window for Pakistan as warmth sets in - The Times of India
 

spikey360

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These Pakistani idiots don't even have the money to invest in their own infrastructure and MMS expects them to invest on India, their sworn enemy. Laughable. Truly the most immature leader of India to have ever been born.
 

Yusuf

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Looking at the brighter side, we have their money and can freeze it any time.
 

ant80

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Am I the only person to remember that the last time such "warmth" pervaded the relationship, Kargil happened!?!?!
 

thakur_ritesh

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Time to move their textile industry to India, then export the same textile back to Pakistan and their clients across the globe. With PPP in the government, its a very doable thing.

Anyways, this is looking very big, and all this is happening without the MFN status being granted to India. Well MMS, before he hangs up his shoes, seems to be in a very obliging mood, hope he is not thinking Siachen.


- SUJAY MEHDUDIA

Businessmen will be given multi-entry visas for more than a year with expanded access

In a development that is likely to bring cheer to people on both sides of the border, Pakistan's Commerce Secretary Zafar Mahmood on Thursday indicated that India and Pakistan would, in all likelihood, announce a new liberal visa regime by next month to facilitate easy movement of businessmen and give a fillip to trade.

"In principle, the visa details have been finalised. But they need to be formally approved and then announced after Home-Secretary-level talks. This would be done by the Interior Ministry of Pakistan and the Home Ministry of India," Mr. Mahmood told journalists after the inaugural function of the four-day "Lifestyle Pakistan" exhibition here. The exhibition was inaugurated by Commerce and Industry Minister Anand Sharma and Mr. Mahmood.

MULTI-ENTRY VISAS

Mr. Mahmood said there were possibilities that businessmen from both countries would be given multi-entry visas for more than one year with access to multiple cities. While Mr. Mahmood did not spell out the specifics, officials said these visa holders could be exempted from reporting to the police also.

"We expect that the meeting between the Interior Ministry of Pakistan and the Home Ministry of India would take place this month or in May and this would be formally announced," he said.

India and Pakistan have been working hard behind the scenes to do away with the 1974 visa agreement and put in place a liberal regime that would allow more free movement for people-to-people exchange.

"Today's scenario is that a Pakistani businessman travelling to Delhi cannot even go to Gurgaon," Mr. Mahmood said.

INFRASTRUCTURE

Stressing the need to improve the infrastructure on the borders to boost the movement of cement and other products, Mr. Mahmood said Indian businessmen were always welcome to invest in Pakistan but there were restrictions on Pakistani businessmen doing so.

TRADE IN PETRO PRODUCTS

Speaking at the function, Mr. Sharma said he would discuss all the issues, including allowing trade of power and petroleum products, on Friday with his Pakistani counterpart Makhdoom Mohammad Amin Fahim.

"We are talking about trade in petroleum products. We are also working towards opening of bank branches of both the countries. The Central Banks of both the countries are in dialogue to finalise the modalities. We will be discussing all these issues," he said.
 

The Messiah

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This could be blessing in disguise if we are clever. We could flood there market with our goods and there money would be in our hands and we could tighten the strings as and when required.

But we need to be clever about it.
 

maomao

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Ever heard of Hawala transactions through non-existent financial institutions and companies?? Ever heard of the Political master of Dawood Ibrahim in India -the Power man from Maharashtra? The people who will benefit the most are the corrupt of the ilk of Sharad Pawar and the wretched Antonia Maino, and of course the coterie and their shameless families!! Who gives a fcuk about the country.....Let's all loot and swell offshore accounts!! This 'Aman ki Asha' has taken too many Indian lives, lets sacrifice few more for NDTV and TOI bastards in collaboration with shameless Con-gress party!
 

mayfair

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Bugger me sideways...what next? Allow Pakis to live, work and settle here?

:spit:
 

Yusuf

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Haha, a paki garment "major" is planning 200 stores in India.
 

SADAKHUSH

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It could work both ways. Since China has withdrawn from two major projects, Pakistan might be forced to open investment from India as well. Whether Indian companies take up on the offer is different thing altogether. Who in Pakistan has money other than drug dealing PA and ISI? May be President Zardari will bring his offshore money to India and ask for political asylum down the road? He will be given congress party membership upon doing so to prove our secularism.

Such a bloody wrong move, I will try to reverse with a magi wand.
 

Bangalorean

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I really hate this. Pisses me off no end!

What have the Pakis done for the "warmth" to set in? When 26/11 happened, we were all angry and vowed not to have anything to do with that pathetic country till they acted on the masterminds. Now, that pig Hafiz is still roaming free there, as are the other ringleaders. And we climb down with all this stupidity of "Aman-Ki Asha".

What guaraentees are we receiving from the Pakis? Are they doing something tangible against terrorists or terrorism? Why are we making so many overtures towards that failed terrorist state?

This Paki business "major" made a statement yesterday, that in order for good relations, India must act with "maturity" when terrorist attacks occur. What a cretin! And we want to allow such people in India.
 

parijataka

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Now, Pakistanis can invest in India

Aman ki asha extended, group hug for all. Investment allowed in sectors such as real estate, stock market, energy, etc and multiple entry business visas. Only business Pakistanis would have is scouting for bomb blasts and terror attacks.

Now, Pakistanis can invest in India
In a bid to give a big boost to trade and bilateral relations and enhance economic cooperation, the Union government on Wednesday notified a law permitting investments by Pakistan citizens and companies in India in sectors/activities other than defence, space and atomic energy.

"The government has reviewed the policy and decided to permit a citizen of Pakistan or an entity incorporated in Pakistan to make investments in India, under the government route, in sectors/ activities other than defence, space and atomic energy,'' says the notification issued by the Department of Industrial Policy and Promotion.

"The citizens and companies of Pakistan would also be able to float joint ventures and participate in any kind of investment ventures, including real estate, stock market, energy and other sectors. These investments will be screened and vetted before being given approval,'' a senior DIPP official said.

Pakistan was the only country in the negative list under the Foreign Exchange Management Act (FEMA), which prohibits investments in India. Sri Lanka was removed from the list in 2006 and Bangladesh in 2007.

Officials in the Industry Ministry said that in order to address the security concerns over investments from Pakistan, FDI proposals from Islamabad would be routed through the Foreign Investment Promotion Board (FIPB), which is headed by the Economic Affairs Secretary in the Finance Ministry.


Both countries had agreed to allow one-year multiple entry visas for business visitors and entry and exit through different cities.
 

parijataka

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Re: Now, Pakistanis can invest in India

Pakistan welcomes India's move to allow investment from there
ISLAMABAD: Pakistan today welcomed India's decision to allow Pakistani Foreign Direct Investment, saying the move will create goodwill and give a boost to efforts to normalise bilateral relations.

Foreign Office spokesman Moazzam Khan welcomed the Indian government's decision to allow Pakistani investments in all areas except defence, space and atomic energy.

The move will benefit Pakistani investors and industrialists, he said.

"We hope this decision will be fruitful for the people of both countries," Khan told the media.

Majyd Aziz, a leading Karachi-based businessman with interests in minerals and shipping, described the Indian government's decision as a "progressive step and a good initiative but not a landmark development".

"Pakistani industrialists are already able to invest in the Indian market through companies based in places like Dubai and Singapore. It will take some time for direct investments to happen," Aziz told PTI on phone from Karachi.

"It would be a landmark development if the Reserve Bank of India removes Pakistan-specific clauses and allows Indian businessmen to invest in Pakistan," he said.

However, he acknowledged that steps like India's decision to allow Pakistani investments would eventually lead to the normalisation of relations in all spheres.

A statement issued by India's Commerce Ministry yesterday said the government had reviewed its policy and "decided to permit a citizen of Pakistan or an entity incorporated in Pakistan to make investments in India".

The statement said investments would not be allowed in defence, space and atomic energy, and all propositions would have to be notified to Indian authorities.
 

A chauhan

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Re: Now, Pakistanis can invest in India

:facepalm: and we were talking that we shouldn't play Cricket matches with them!
 

ani82v

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Re: Now, Pakistanis can invest in India

This has no consequence to India. Its only a side show, doesn't deserve our attention.
 

lcatejas

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Re: Now, Pakistanis can invest in India

Pakistan is already investing in India its a old news.... pak sponsored terrorism by proxy network now they will invest easily...:mad:
 

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