Federal Minister for Commerce Makhdoom Amin Fahim has said both Indian and Pakistani governments are determined to ensure normalisation of economic and trade relations. The first single country exhibition of Indian products, The India Show 2012, is part of these efforts that indicates that things are being put in the right direction.
Federal minister was speaking at the inaugural session of The India Show here at Lahore Expo Centre on Saturday. Fahim said the government was well aware of the reservations being expressed by certain sectors of the economy. He urged Pakistani pharmaceutical industry to bring down prices of locally manufactured drugs to compete with their counterparts across the border.
Later, speaking to the press, federal minister said The India Show was just a beginning. Pakistan would reciprocate by showcasing, Made in Pakistan Show, in India in the near future. Fahim admitted that existing infrastructure at Wagha border was inefficient to handle the increased volume of bilateral trade. However, he pointed out that things were improving gradually on both sides and infrastructure development was also underway.
He said discussions were underway for three years multiple visas for the business community. Stakeholders on both sides of the border were deliberating to remove obstacles in the way of smooth commerce and trade. However, he underscored that no hasty decision would be made.
Federal minister avoided the question about Non-Tariff Barriers (NTBs) by the Indian government despite awarding Most Favoured Nation (MFN) status to Pakistan in 1996. But he stressed that the situation was now heading towards normalisation.
Indian High Commissioner Sharat Shabarwal, Federation of Indian Chambers of Commerce and Industry (FICCI) Secretary General Dr Rajiv Kumar, Lahore Chamber of Commerce and Industry (LCCI) President Irfan Qaiser Sheikh and SAARC Chamber of Commerce and Industry Vice President Iftikhar Ali Malik also spoke on the occasion.
Addressing the inauguration ceremony, Indian High Commissioner Sharat Shabarwal said India wanted to share its growth potential with other countries, especially with its neighbours. India wanted to enhance bilateral trade with Pakistan, which would harness the economic prosperity. Shabarwal also pointed out that visa regime remained the main obstacle in promotion of bilateral trade between the two neighbours, but it was being eased out now. While highlighting The India Show, Indian high commissioner said wide range of products were out on display by Indian manufacturers. The India Show would pave way for future trade and commercial ties between India and Pakistan.
Speaking on the occasion, LCCI President Irfan Qaiser Sheikh said The India Show 2012 would lay a new milestone in the history of trade and economic relations of the two neighbouring countries. The show was a realisation of a dream of the business community of India and Pakistan to hold single country exhibitions at each other’s place.
Sheikh said Pakistani business community was in favour of promotion of trade, especially with neighbouring countries. But, he underlined, it should not be at the cost of domestic industry, which was already struggling to survive in acute energy shortage, rising inflation, widespread corruption and deteriorating law and order situation.
Irfan Qaiser said there were serious concerns and reservations from some sectors, including pharmaceutical, automobile, motorcycle, auto parts, sugar, textiles, cooking oil/ghee, etc. Any step forward without addressing concerns of the private sector with regard to awarding MFN status to India would only result in causing more problems.
He said India granted MFN status to Pakistan in 1996, but Pakistan was still continuing with a positive list of importable items from India. Despite of that Pakistan could not take advantage mainly because of NTBs and some other impediments on part of Indian government. Obviously there were complex domestic, political and security compulsions on both sides, which were bearing heavily on the existing framework for bilateral trade. Pakistani business community strongly felt that despite having granted Pakistan MFN status, a great deal of non-tariff and para-tariff barriers were still in place while exporting to India, he maintained.
He pointed out that volume of documented trade between India and Pakistan was around $2 billion, whereas, it was believed that the trade with India had the potential to be anywhere between $5 and $10 billion. But how much share Pakistan would be able to get out of it, was a big question mark. He further stated due to tight visa regime, bilateral trade between the two neighbours remained under $1.7 billion since past three years through regular channels. Whereas, overall volume of trade between India and Pakistan through irregular channels, like Dubai and Singapore ranged around over $3 billion per annum. It was high time to take benefit from each other’s strength and put aside all differences that had been hindering trade, commerce and economic prosperity, he stressed.
After the opening ceremony, federal minister formally inaugurated the exhibition and took a round of the hall. LCCI Senior Vice President Kashif Younis Meher, Vice President Saeeda Nazar, US Consul General in Lahore Nina Maria Fite, former LCCI President Mian Mohammad Ashraf, former LCCI Senior Vice President Abdul Basit, former LCCI Vice President Aftab Ahmad Vohra and large number of businessmen, were present at the occasion.
