MFN status to India will boost trade: FM


Foreign Minister Hina Rabbani Khar on Friday defended the government’s decision to give India the status of ‘most favoured nation’ (MFN), saying the move would boost trade between the two countries. Talking to reporters outside the Parliament House, Khar said the government was trying to remove trade barriers between the two countries and that it had informed India of its decision during the recent secretary-level talks.
She said Pakistan was an important regional player and it would continue efforts to promote regional trade and peace. She said improved trade ties between the two countries would facilitate an uninterrupted dialogue with India through which the Kashmir issue could be resolved.


  1. The opportunity is enormous for Pakistan. I will give you one or two examples. But first, allow me to say that, without any exception, an honest cross-border free trade is always a win-win situation. Whether it is US-Mexico, US-Canada, Germany-France, Italy-Germany, Chez Republic-Slovakia, Poland-Germany, France-Belgium, Belgium-Denmark, Portugal-Spain, Malaysia-Singapore, Japan-Taiwan, — you name it!

    Take Pakistan's Marble industry. For more than a decade China is buying large quantity of marble, granite etc. in unfinished block. China takes them in the mainland, cut tiles, finish and export worldwide. But in since the first day of this trade, china didn't invest back a single penny in developing Pakistan's marble industry. The result? If Pakistan gets a dollar selling it's marble, china makes two on it and they won't like to change it. Please do not misunderstand – this is not a campaign against a all weather friend. That's what chinese trade is – everything is controlled, manipulated and anything but free. Sell the same marble to India (india now-a-days imports). The transportation cost would be less. The biggest thing that will happen is that, the next day, proposals from indian "marble capitalists" are pouring in for joint venture on pakistani quarry owners. The reason: the indian industry, under capitalist system, has to compete amongst themselves for access to Pakistani marble. The result: pakistani industry grows by higher value addition and direct demand and indian industry benefits from direct and reliable sourcing with cost savings on transportation. What i was saying is not a fantasy. This exact same thing plyed out between india and italy between mid 1970's through late 1980's. And today indian marble (finished product) is atleast three times that of italy.

    Pakistan's cotton is another facet. If indian industry wants to buy cotton from Pakistan, that would give Pakistani mill owners a good run for their money and shrink thir short term profit, but producer prices of raw cotton will go up more to provide better return to the actual producers of raw cotton. And that would be a very good thing for Pakistan both economically and socially.

    Don't get scared: indians exports iron ore to china (and korea, japan etc.) at the same time they themselves are on their way to become steel making and consuming giant.

    There are many more items i could mention (cement, dates, pomegranate, surgical equipments, processed food, gem stone – the list goes on) but my comment is already too long. So the last thing i would like to say that all the things i said does not happen over-night. Staying on course is important (and politicians don't mess things up for their own narrow interest).

    • 20 hrs. passed, it's surprising no gave my comment a thumbs down (usual due) yet. So I am daring to give one more:

      How do the Pakistanis get Indian tea? Well, it's India to Afghanistan (at one sixth the retail cost of Pakistan). Then Afghanistan to Pakistan in gray market at half the Pakistani regular-retail or three times the Afghan regular-retail cost. Wind-fall goes to Black/Grey market operator. Pakistani consumers are loosers. National security implications negative because it gives rise to an underground world.

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