Terming it a step towards prosperity and development of South Asia, Pakistan Peace Coalition (PPC) and Pakistan Institute of Labour Education and Research (PILER) on Thursday welcomed the federal cabinet’s decision to give India the ‘Most Favoured Nation (MFN)’ status for trade purposes. India had already granted MFN status to Pakistan 15 years ago in 1996. In a joint statement released by PPC and PILER, the move was termed a major breakthrough towards trade liberalisation between India and Pakistan that must be appreciated on both sides of the borders.
“We see it as an opportunity for normalisation of relations between the two neighbouring countries and also hope that India and Pakistan resolve all the pending issues especially detainment of fisherfolk of both the countries and territorial disputes like Sir Creek and Siachin,” the statement added. The bilateral trade between India and Pakistan had been affected by non-tariff barriers such as security clearances, customs inspections, requirements of technical certification, labelling and marketing rules due to absence of MFN status for India.
Along with other civil society organisations in Pakistan and India, PPC and PILER had initiated a peace campaign for liberalisation of trade and easy movement of people between the borders as the key points of the movement. It was demanded in the statement that both the countries should stop spending their budgets in an arms race and divert that portion for the welfare of masses. “We demand that both countries announce a roadmap for trade normalisation so that no element can sabotage the peace process on both sides of borders.”
The trade between the two countries stands around $2.6 billion which can be further boosted in various sectors. Various studies estimate that the potential two-way trade between the two countries can be increased about 10 times than its current level.
Moving towards realising this potential is in the interest of the people of both countries especially Pakistan that has already endured due to internal and external challenges.
Due to the increased trade between two countries the economic activities would certainly get a boost on both sides of borders while new rail- and road-networks should be opened to further accelerate the trade.
Pakistan and India are already members of South Asian Association for Regional Cooperation (SAARC) and all the SAARC countries have signed a charter that they should reduce customs duties of all traded goods up to 2016. The South Asian region has a population of more than 1.8 billion and increase in trade would benefit the regional trade and create an opportunity for the working class of all SAARC countries.
Enhanced trade activities hold the promise of peace with spill-over affect for the entire South Asia region and rest of the world. At domestic level, peace between the two rival neighbours assures to divert resources from security to development. It is also a high time for Pakistan to think whether it chooses to adopt the path of national security or path of peace and development that promises basic necessities, prosperity and freedom to citizens.
Climate change has also put adverse affect on both countries as both are victims of floods and geographical changes. A proper disaster management programme and exchange of expertise would be fruitful for both the countries
The move by Pakistan government is just a single step towards the journey of thousands of miles. The main issue is the removal of negative trade lists that were the main cause of concern in trade normalisation as both the countries have put certain restrictions in trade commodities, which has to be addressed, the statement concluded.
