LAHORE – The Centre for Peace and Democracy arranged a seminar organised in collaboration with the Lahore Chamber of Commerce and Industry (LCCI). There was unanimity amongst the participants that trade was the best option in building confidence and boosting relations between Pakistan and India, as well as creating new opportunities for economic growth. Among others the key speakers included former economic advisor Dr Salman Shah, CPD Director M Shoiab Adil, LCCI SVP Sheikh Muhmmad Arshad, Convener of LCCI Pak-India Trade Promotion Committee Aftab Vohra, noted economist Dr Qais Aslam and PIAF Chairman Sohail Lashari.
Speakers said that Pakistan having annual import bill of around $12 billion is importing goods worth around $600 million or around two percent only from the SAARC member countries. In a consensus opinion the economists as well as the business leaders said that Pakistan and India should work for ensuring uninterrupted bilateral trade which will help strengthen their economies and promote regional integration in South Asia. Dr Salman Shah said that both the countries should focus on promoting trade and economic relations to create new hopes and a better future for their people. Presently the regional trade of south Asia is just two percent while Pak-India trade is not more than 0.5 percent of our GDP, which should be enhanced to a high level in the interest of the public of all the countries in the region, said the former advisor.
On the other hand EU countries and the Asian are presently trading more than 22 percent of their GDP, he added. He said that Pak-India official trade is of $2.0 billion, a measly amount. He stressed the need for improving this trade balance with the neighboring country. He brushed aside any notion that free trade with India will destroy local industry, saying it would rather be beneficial for both the countries and their people. He said negotiations should be preferred over confrontation in the resolution of disputes between the two countries. LCCI SVP Sheikh Arshad said India should fully reciprocate all efforts of Pakistan to improve relations as Pakistan could not promote trade unilaterally. He said the national interest should be kept supreme in relations with other countries.
He said that Pakistan exported goods valued $268.33 million and imported $1.03 billion in 2009-10 with Pakistan suffering a trade deficit with India with trade heavily in India’s favour. He drew the attention of India towards delays in the issuance of business visas to members and requested to simplify the visa procedures.
Aftab Vohra said that the country imports Indian goods of up to $3.0 billion through informal trade via Dubai and Singapore and if this trade is allowed from India directly in a legal manner, the cost of trade will be cut sharply, besides improving government revenue.
He said that by removing non-tariff barriers, India could pave the way for Pakistan to enhance its trade and to narrow down the trade deficit. He said the unauthorized trade could be converted to legal business through frequent interaction between both the countries chambers and trade associations, which will stop smuggling entirely and lower the const significantly.
