Pakistan may grant India MFN status on Friday

Discussion in 'Foreign Relations' started by Srinivas_K, Mar 18, 2014.

  1. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    Pakistan may grant India MFN status on Friday
    ISLAMABAD: Pakistan will grant on Friday Most-Favoured Nation (MFN) status to India with a condition of receiving a substantial concessions in trade from New Delhi.

    The decision is expected to be announced after a special cabinet briefing to be headed by Prime Minister Nawaz Sharif, a well-placed source in the ministry of commerce told Dawn on Monday.

    Commerce Minister Khurram Dastagir Khan had made a conditional offer for granting MFN status to India in January, and had sought access for 250 to 300 items at lowered duties.

    At the time of the MFN offer, the commerce ministry has not linked the trade liberalisation with the resumption of suspended talks, which raised questions from other stakeholders for ignoring their issues while given the concession to India.

    As a result, the decision was delayed which was scheduled to be announced in the middle of February during the proposed visit of Indian Commerce Minister Anand Sharma. However, delay in decision led to postponement of the Indian minister visit to Pakistan.

    Earlier, the granting of MFN status to India was part of the composite dialogue, which was suspended since January 2013.

    A high-powered committee headed by Finance Minister Ishaq Dar had been constituted to handle the issue and opposing groups.

    Mr Dar will brief the cabinet about the offers from India before the cabinet approves the recommendation of granting MFN to India.

    The cabinet decision, according to the source, will be conditional that Pakistan will allow import of all commodities from India via Wagah border and will abolish the negative list of 1,209 items in one go.

    After the cabinet approval, these decisions will be announced through a statutory regulatory order (SRO).

    Items placed on the negative list are not allowed for import from India. At the same time, currently only 137 items are importable from India via Wagah border.

    The source said that India has offered to lower its duties to 7.5pc in a period of six months after Pakistan’s announcement of the MFN for India, which will be further lowered to 5pc in a period of one year. India is not willing to remove NTBs and customs duties.

    Major beneficiary of the concession in tariff will be textile sector, based in Punjab.

    Similarly, India will reduce its list of sensitive products to 100 items immediately after the announcement of the decision, while Pakistan reciprocates the decision in a period of five years.

    At the same time, the cabinet will also approve the decision like opening of Wagah border for 24 hours and shifting of cargos from trucks to containers.

    The ministry of commerce, however, said that India would not be given transit facility to Afghanistan and Central Asian Republics through Wagah route. This will be done in the second phase in future, the source said.

    Ahead of the announcement, the ministry of commerce has started intense consultations with media persons to brief them about the positive aspects of decision. The last round of consultation with opposing stakeholders has also started and will conclude in the next couple of days.

    The ministry of commerce has come up with a lot of excuses and explanation in a brief for media to defend the decision of giving MFN status to India, apparently criticising the previous governments in denying this right to India.

    The brief has calculated nine advantages of granting MFN to India including potential export gains for some product group--- textile ($1 billion), cement ($300 billion), chemicals ($200 million), agricultural products ($300 million), mineral products ($100 million) etc.

    Pakistan may grant India MFN status on Friday - DAWN.COM
     
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  3. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    Outlook for India-Pakistan trade
    [​IMG]
    India will go to the polls between April 7 and May 12. Analysts widely expect the polls to throw up a BJP-led coalition headed by Hindu nationalist leader Narendra Modi.

    What will Modi’s ascension to the top political office in Delhi mean for Pakistan’s trade relationship with India? Should Islamabad, which has recently linked the grant of non-discriminatory market access to Indian goods, especially through Wagha-Attari land route, to resumption of the stalled composite dialogue, be worried?

    Apparently, businesspeople on both sides of the border as well as trade officials don’t really see Modi’s expected victory as a threat, or even a setback, to the process of bilateral trade normalization.

    Conversations with Indian businessmen in Amritsar in December and in Lahore last month show that his victory could be ‘blessing in disguise’ for the ‘now on now off’ trade talks.

    “Modi is a doer. If he realises that trade with Pakistan is in India’s best interests, he will not let any issue, ideology or person impede it,” a businessman from Amritsar had told this writer. “He takes just a few minutes to take economic decisions if he is convinced.”

    Many Indian businessmen share his assessment of the man who can often pledged to be ‘tough’ with Pakistan after his nomination as his party’s candidate for India’s premiership.

    Improving trade relations with India is the key priority of the Nawaz Sharif government, which sees liberalisation of bilateral trade across Wagah-Attari as one the several ‘game changers’ for the country’s economy listed in its election manifesto. Ever since coming to power it has strived hard to revive the stalled trade negotiations with Delhi.

    The hopes of an early normalisation of trade across the border got a major boost when commerce minister Khurram Dastgir Khan met India’s trade minister Anand Sharma on the sidelines of a Saarc business conclave in January. After commerce secretary level talks, the two ministers agreed to keep the Wagah-Attari trade route operational 24 hours a day seven days a week, work out modalities for containerisation of cargo, allow all tradable items by the only land route and liberalise business visa regime.

    Pakistan also agreed to scrap negative list of items that cannot be traded and replace it with a much smaller list of 100 sensitive items, virtually giving India the non-discriminatory market access as an alternate to politically controversial MFN status. The agreed measures were to be implemented before the end of last month.

    But Pakistan later refused to implement these measures, blaming Delhi for failing to execute its part of the agreement that required it to dismantle several tariff and technical barriers hampering access of major Pakistani exports like textiles into the Indian market.

    Speaking at the inauguration of the India Show, Dastgir linked the implementation of all the agreed measures to the resumption of the composite dialogue, saying the commerce ministers could facilitate the process to a certain extent only.

    Many said the move to link the trade normalisation process with the resolution of the other bilateral territorial and political disputes to have been taken under the military’s pressure. The government denies it.

    A commerce ministry official told Dawn from Islamabad that the process to implement the measures agreed by the ministers was stalled because of India’s failure to meet its part of the commitment and not under the army’s pressure. “The security forces and the government are on the same page as far as I know of,” he said. He also sought to dispel reports that India had agreed to address Pakistan’s concerns before end of this month in return for non-discriminatory market access to its exports.

    ”We are doing our home work to protect our economic interests and industry; they are doing theirs. Both are very much committed to overcoming the hurdles in the way of free trade and discussing how to move ahead in such a way that no country gets hurt by opening up of trade. But it is premature to say when will we be able to surmount the impediments to the process,” he said.

    The official also downplayed fears of derailment of trade talks if Modi wins the Indian elections. “I have only comment to make: when it comes to economic and political relationships between the two countries, individuals or domestic politics just don’t matter. What matter the most are national interests,” he said in reply to a question.
    Outlook for India-Pakistan trade - DAWN.COM
     
  4. shankyz

    shankyz Regular Member

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    Time to flood the Paki's markets with cheap yet better Indian goods , finish off their domestic manufacturing once and for all, and of course pocket their $$$

    Sent from my Nexus 7 using Tapatalk
     
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  5. Srinivas_K

    Srinivas_K Senior Member Senior Member

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    India do not think about monopoly and there are areas where Pakistanis are good at and then there are areas where Indians are good at. Trade affairs will benefit both the nations.

    India has its own resources which will make India an economic power. India only wants peace and economic prosperity in this region.
     
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  6. Vishwarupa

    Vishwarupa Senior Member Senior Member

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    :thumb:

    Good achievement for UPA-2.
     
  7. ninja85

    ninja85 Regular Member

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    when pakibeggars got status to give status to another country. :rofl::laugh::lol:
     
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  8. Blackwater

    Blackwater Veteran Member Veteran Member

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    its all about india -afgan trade through pakistan.

    correct me if iam wrong
     
  9. Coalmine

    Coalmine Regular Member

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    Put the mfn status to dust bin
     
  10. tarunraju

    tarunraju Moderator Moderator

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    Even Pakistan is giving Modi an objective assessment, but India's sickulars aren't.
     
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  11. Blackwater

    Blackwater Veteran Member Veteran Member

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    nobody corrected me so far
     
  12. ubuntu

    ubuntu Tihar Jail Banned

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    Those pakibeggers will smuggle drugs and claim diplomatic immunity.

    correct me if i am wrong?:rolleyes:
     
  13. ninja85

    ninja85 Regular Member

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    correction - it could be also about iran - india gas pipeline through pakibeggaristan.
     
  14. ladder

    ladder Senior Member Senior Member

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  15. Sea Eagle

    Sea Eagle Senior Member Senior Member

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    As soon as the goods reach Western Pakistan they will be blown up by terrorists even if Pakistan Provides VIP security to them.
    Better go with Iranian ports :cool2:
     
  16. Blackwater

    Blackwater Veteran Member Veteran Member

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    what if u put already IED:lol::lol:
     
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  17. Dark Sorrow

    Dark Sorrow Respected Member Senior Member

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    I can't believe still this bullshit is going on. This thing is going for an year.
     

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