Pakistan's exports to India increase by 66%

[farhan_9909]

Indian Express:

Amidst intense lobbying by several Pakistani industries to block the grant of MFN-status to India, the latest trade figures show that Pakistani exports increased by 66 per cent after the two countries initiated steps to normalise trade relations.

Pakistan's exports to India during April-December 2012 showed a growth of 66 per cent over the same period in 2011, according to figures from the Directorate General of Commercial Intelligence and Statistics of India's Commerce Ministry.

In contrast, India's exports to Pakistan grew by 16 per cent during April-December 2012.

Pakistan's exports to India in the nine-month period were valued at USD 460 million, significantly higher than the exports of USD 277 million during April-December 2011.

The figure for the nine-month period was also higher than Pakistan's total exports to India during 2011-2012, which were valued at USD 401 million.

"The growth of 183 million dollars in Pakistan¿s exports to India during April-December 2012 is more than the increase of about 170 million dollars in its imports from India in the same period," said an official statement from the Indian High Commission.

The latest figures further showed that the share of Pakistan's exports in bilateral trade had almost doubled since 2009-10.

"The impressive increase in Pakistan's exports during April-December 2012 reflects the benefits of the steps taken to enhance bilateral trade, and improvement of trade environment, aided by SAFTA tariff reductions," the statement said.

The figures are in complete contrast to claims by some Pakistani industries, including agriculture, pharmaceuticals, textiles and automobiles, that the liberalisation of bilateral trade would lead to Pakistani markets being swamped by cheaper Indian goods.

However, some businessmen have acknowledged that these industries are opposing trade liberalisation and the grant of Most Favoured Nation-status as they fear it will lead to end of their monopolies.

Pakistan's exports to India increase by 66% - Indian Express

 

[bharata]

Good for them

 

[sob]

It is a fact that Pakistan has more to gain from granting MFN status to India. The benefit to the Pakistani economy will be enormous but this the leadership there has to realise.

For most of Indians not getting MFN from Pakistan is no big deal.

 

[datguy79]

Do they still trade in barter?

 

[hit&run]

Indian Express:

Amidst intense lobbying by several Pakistani industries to block the grant of MFN-status to India, the latest trade figures show that Pakistani exports increased by 66 per cent after the two countries initiated steps to normalise trade relations.

Pakistan's exports to India during April-December 2012 showed a growth of 66 per cent over the same period in 2011, according to figures from the Directorate General of Commercial Intelligence and Statistics of India's Commerce Ministry.

In contrast, India's exports to Pakistan grew by 16 per cent during April-December 2012.

Pakistan's exports to India in the nine-month period were valued at USD 460 million, significantly higher than the exports of USD 277 million during April-December 2011.

The figure for the nine-month period was also higher than Pakistan's total exports to India during 2011-2012, which were valued at USD 401 million.

"The growth of 183 million dollars in Pakistan¿s exports to India during April-December 2012 is more than the increase of about 170 million dollars in its imports from India in the same period," said an official statement from the Indian High Commission.

The latest figures further showed that the share of Pakistan's exports in bilateral trade had almost doubled since 2009-10.

"The impressive increase in Pakistan's exports during April-December 2012 reflects the benefits of the steps taken to enhance bilateral trade, and improvement of trade environment, aided by SAFTA tariff reductions," the statement said.

The figures are in complete contrast to claims by some Pakistani industries, including agriculture, pharmaceuticals, textiles and automobiles, that the liberalisation of bilateral trade would lead to Pakistani markets being swamped by cheaper Indian goods.

However, some businessmen have acknowledged that these industries are opposing trade liberalisation and the grant of Most Favoured Nation-status as they fear it will lead to end of their monopolies.

Pakistan's exports to India increase by 66% - Indian Express

Show this article to Pakistanis and @Agonist muslim; I read him at another forum last year that trade with India will be counter productive like it has been with China.

 

[farhan_9909]

It is a fact that Pakistan has more to gain from granting MFN status to India. The benefit to the Pakistani economy will be enormous but this the leadership there has to realise.

For most of Indians not getting MFN from Pakistan is no big deal.

MFN is only limited to trade or investment as well?

because few days before on ary a program about thar coal and reko diq i watched said we will revive the option of indian billionaire proposed investment of upto 2billions USD in thar and 400millions in balochistan

 

[farhan_9909]

Do they still trade in barter?

Don't know about india but with iran we may start barter trade very soon

 

[farhan_9909]

From Pakistan side for india cement could be the most attractive import because in Pakistan everything is stopped and nothing new except few project started by previous govt are ON.while india is under heavy infra upgradation and are short of cements

one of my cousin working in a cement plant told me that every single cement factory in pakistan is working at half capacity because local demand is very low and except India(very limited) and afghanistan we have no other option to export

so i think from Pakistan india can import Cement at low price

 

[sob]

MFN is only limited to trade or investment as well?

because few days before on ary a program about thar coal and reko diq i watched said we will revive the option of indian billionaire proposed investment of upto 2billions USD in thar and 400millions in balochistan

MFN is limited to trade only, not for investment.

Regarding the investment IIRC it was Mr.Anil Agarwal of Vedanta Group who had proposed this investment. He has one of the largest Copper Smelters in Asia, plus with the takeover of Cairn India operations they will be taking over the Rajasthan Mangla Oil fields also.

 

[sob]

From Pakistan side for india cement could be the most attractive import because in Pakistan everything is stopped and nothing new except few project started by previous govt are ON.while india is under heavy infra upgradation and are short of cements

one of my cousin working in a cement plant told me that every single cement factory in pakistan is working at half capacity because local demand is very low and except India(very limited) and afghanistan we have no other option to export

so i think from Pakistan india can import Cement at low price

A couple of years ago Cement was imported in huge quantity from Pakistan through Wagah. Due to the low freight costs it was very competitive to Indian Cement manufacturers.

Slightly off topic, in India the Cement manufacturers have been found to be indulging in cartel formation to fix the price. We can use imports from Pakistan to break this cartel and lower the price of cement in India, which has been artificially hiked up.

 

[sob]

Don't know about india but with iran we may start barter trade very soon

There is no other option, because of the sanctions. No Bank will be willing to handle the transactions.

 

[thakur_ritesh]

It is a fact that Pakistan has more to gain from granting MFN status to India. The benefit to the Pakistani economy will be enormous but this the leadership there has to realise.

For most of Indians not getting MFN from Pakistan is no big deal.

Sumeet,

This was a well devised strategy on part of the GoI, GoP, and the trade bodies in the two countries.

In Pakistan, there was and is, a lot of resistance on handing out MFN to us. The argument goes, even after India being handing out MFN to Pakistan long back, it is only India which has benefited, and Pakistan's gain was negligible, if anything. The idea devised was to show to the anti-trade lobbyists in Pakistan, who are quite significant in number and have a very vocal voice in the media, that there is practically no threat from India if the trade is opened up with India and all the scaremongering is no more than paranoia and propaganda of those lobbies, on the contrary, it is Pakistan which is most going to benefit. India as a result significantly reduced the non-tariff trade barriers, and so what one sees is the movement of Pakistani goods to India has been significantly eased out, resulting in significant spike in Pakistan's exports to India.

One just needs to look at the timing of the report, now was the time that the MFN was to be handed out to India, but has not been, this news is coming out from Pakistan not India, even this report by the Indian Express is coming from Islamabad, not New Delhi. This will now be extensively sold and propagated in Pakistan through various mediums, and the idea will be to have the MFN within this fiscal.

Even from the political stand point of view, the MFN is very important for the Congress prior to the general elections especially so in Punjab, and Haryana, the 2 states which stand to gain the most.

Eventually India and Pakistan are moving to implementing SAFTA, the time line is 2017, and the MFN is a very crucial 1st of the many steps lined up.

One can understand the focus and desire on the part of the 2 governments that the recent flare up at the LoC was not allowed to escalate beyond a certain point, and the rhetoric was curtailed within a few days. The pointers are very clear which direction the trade between the 2 countries is headed to.

 

[Sukerchakia]

MFN from an enemy country?

Hang on, in case we do get it, can I expect those bloody dry fruits to get any cheaper?

 

[datguy79]

Maybe some economics-oriented people here can clear up the air, but I just don't see how granting MFN status/free trade does not end up being to the advantage of the bigger economy.

 

[hello_10]

From Pakistan side for india cement could be the most attractive import because in Pakistan everything is stopped and nothing new except few project started by previous govt are ON.while india is under heavy infra upgradation and are short of cements

one of my cousin working in a cement plant told me that every single cement factory in pakistan is working at half capacity because local demand is very low and except India(very limited) and afghanistan we have no other option to export

so i think from Pakistan india can import Cement at low price

except cement, what exactly Pakistan export to India? I heard half of their total export is of agriculture side?????

Pakistan faced the major challenge from China whose products have taken over the market, similarly how Chinese products are dominating in India too. but India does have an industrial infrastructure, which need to be competent enough as compare to Chinese products and they are trying too. but the same is almost absent in Pakistan, Pakistani industries certainly doesn't have the environment that they may have a world class manufacturing base....

the same we see in India too, i remember Maruti refused to have a plant in Bengal as they don't find that state provides enough to industrialists, similarly how Industries are high performing in West and South India.....

 

[sob]

Maybe some economics-oriented people here can clear up the air, but I just don't see how granting MFN status/free trade does not end up being to the advantage of the bigger economy.

It is not easy to say which country is going to benefit from a MFN. But for the Pakistani side there are some very important gains,

1. Most of the imports of Indian Goods are via Dubai, which add to the cost and to the time. Direct trade would reduce the cost to a considerable degree.

2. Due to sheer cussedness on part of the establishment in Pakistan, many items which are produced in India are sourced from third countries at a higher cost ( cost could also be in terms of higher freight payouts)

3. Investment from India in the core sector could see stalled projects like mining of coal and copper in Pakistan. There is a ready market for these raw materials in India.

4. Pakistan has a shortage in terms of oil refineries. Supply of Petrol/Diesel from Jamnagar or the upcoming refinery in Bhatinda will reduce the cost for Pakistan.

5. Being primarily an agricultural based country, India represents a very big market for their agricultural produce.

6. They could make huge money through transit fees for Ind-Afgan trade.

The list could be much bigger.

 

[sob]

Sumeet,

This was a well devised strategy on part of the GoI, GoP, and the trade bodies in the two countries.

In Pakistan, there was and is, a lot of resistance on handing out MFN to us. The argument goes, even after India being handing out MFN to Pakistan long back, it is only India which has benefited, and Pakistan's gain was negligible, if anything. The idea devised was to show to the anti-trade lobbyists in Pakistan, who are quite significant in number and have a very vocal voice in the media, that there is practically no threat from India if the trade is opened up with India and all the scaremongering is no more than paranoia and propaganda of those lobbies, on the contrary, it is Pakistan which is most going to benefit. India as a result significantly reduced the non-tariff trade barriers, and so what one sees is the movement of Pakistani goods to India has been significantly eased out, resulting in significant spike in Pakistan's exports to India.

One just needs to look at the timing of the report, now was the time that the MFN was to be handed out to India, but has not been, this news is coming out from Pakistan not India, even this report by the Indian Express is coming from Islamabad, not New Delhi. This will now be extensively sold and propagated in Pakistan through various mediums, and the idea will be to have the MFN within this fiscal.

Even from the political stand point of view, the MFN is very important for the Congress prior to the general elections especially so in Punjab, and Haryana, the 2 states which stand to gain the most.

Eventually India and Pakistan are moving to implementing SAFTA, the time line is 2017, and the MFN is a very crucial 1st of the many steps lined up.

One can understand the focus and desire on the part of the 2 governments that the recent flare up at the LoC was not allowed to escalate beyond a certain point, and the rhetoric was curtailed within a few days. The pointers are very clear which direction the trade between the 2 countries is headed to.

Ritesh,

I must admit thinking logically about the LOC incident now, it is clear that this was a good thought about strategy by the GOI.
As @lemontree has pointed out in another forum, reply will be there by IA, but it will be at a time of their choosing and will lethal. It has happened in the past and will happen again.

 

[hello_10]

It is not easy to say which country is going to benefit from a MFN. But for the Pakistani side there are some very important gains,

1. Most of the imports of Indian Goods are via Dubai, which add to the cost and to the time. Direct trade would reduce the cost to a considerable degree.

2. Due to sheer cussedness on part of the establishment in Pakistan, many items which are produced in India are sourced from third countries at a higher cost ( cost could also be in terms of higher freight payouts)

3. Investment from India in the core sector could see stalled projects like mining of coal and copper in Pakistan. There is a ready market for these raw materials in India.

4. Pakistan has a shortage in terms of oil refineries. Supply of Petrol/Diesel from Jamnagar or the upcoming refinery in Bhatinda will reduce the cost for Pakistan.

5. Being primarily an agricultural based country, India represents a very big market for their agricultural produce.

6. They could make huge money through transit fees for Ind-Afgan trade.

The list could be much bigger.

a very good comment, I also have made similar comments in past.......

one day I told to few Pakistani members, "a business is done for the best profit only, whether you may get that profit by importing the same via Duai etc or directly from India. and if you may save $500mil by directly importing the same from India, then you may use this money to buy more arms to fight with India too :thumb:."

today's world isn't like 80s when you could keep your market untouched from rest of the world . "if you have to then better do that business directly. a business is done for the best profit margin, whether you like your neighboring country or not, and the same is true when India imports Chinese products which are said to have taken over Indian businesses to extent. but if you have to then better import the same directly from China....."

thats how the world market is. and sooner we adopt this modal, sooner we prepare our own industries to perform similarly :thumb:

 

[Ash]

From Pakistan side for india cement could be the most attractive import because in Pakistan everything is stopped and nothing new except few project started by previous govt are ON.while india is under heavy infra upgradation and are short of cements

one of my cousin working in a cement plant told me that every single cement factory in pakistan is working at half capacity because local demand is very low and except India(very limited) and afghanistan we have no other option to export

so i think from Pakistan india can import Cement at low price

Pakistan also exports to South Africa, but if I am not mistaken some corruption has been exposed and the cement imports from Pakistan have been stopped.