India-Pakistan relations are much bigger than the trade and commerce between the two neighbouring country, but inefficient infrastructure and militaristic concerns on both sides of the border are major impediments in smooth relationship.
These remarks were made by the Federation of Indian Chambers of Commerce and Industry (FICCI) Secretary General Dr Rajiv Kumar, while giving interview to a select group of journalists. Dr Kumar has come here to participate in the first single country exhibition of Indian products, ‘The India Show 2012’, which was inaugurated by the Federal Minister for Commerce Makhdoom Amin Fahim at Lahore Expo Centre on Saturday.
Dr Kumar was of the view that both countries could save billions of rupees spent on account of defence and security, if trade relations between India and Pakistan improve. “Both neighbours should understand that these funds could be used for the development of masses,” he underscored.
Both countries complemented each other meticulously, he indicated, “In the period of shortages, it is in their benefit to import goods from each other as it is cost effective and the easiest. In addition, once relations are harmonised, integrated production hubs can be set up at both sides of the border. There is no harm if Pakistan produces all cement and India produces some other products,” he stressed. Responding to a query, Dr Kumar said that both sides were negotiating most favoured nation (MFN) agreement, but it could not produce results if port infrastructure remained inefficient on both sides of the border. Business community and media should press their respective governments to focus on infrastructure development, otherwise it was impossible to enhance trade volume between the two neighbours, he maintained. He, however, pointed out that the MFN status was necessary to give confidence to state machinery at both sides. “Right now, people sitting at border posts and Customs stations have perception to discourage trade between India and Pakistan. Both sides are not prepared to handle increased volume of trade due to procedural and infrastructure hurdles,” he maintained. Highlighting another hurdle in India-Pakistan trade, he underscored that Delhi and Islamabad could never help each other as people sitting in Delhi could not comprehend the potential of India-Pakistan trade, due to its smaller volume. He believed that governments in Pakistani and Indian Punjab had to increase liaison and dialog to enhance trade. He pointed out that Chandigarh was a landlocked area that could benefit the most if trade relations between India and Pakistan improved. He pointed out that currently it takes some three days to clear a consignment from Wahga Border, when only 150 trucks were crossing borders. If the volume increased the facility would choke down that would ultimately increase cost and result in total loss. He said as things stand large quantities of perishable commodities were being imported through Wahga Border but to liberalise trade both country had to open more ports. Answering a question, Dr Kumar said that Pakistani side had better infrastructure whereas India could not develop infrastructure at Wahga border to facilitate trade. He underscored that non-tariff barriers (NTBs) was merely a buzz word, in fact most hurdles had already been removed except infrastructure. He indicated that visa issue had also been addressed. In future, business community would get multiple-entry and multiple-city visas. He further said that everywhere in the world, governments issue one visa for the whole country, but in case of India and Pakistan, both countries were still stuck up at city specific visas. Both governments needed to address this issue to liberalise trade by augmenting mutual trust, he underlined. Answering another question, Dr Kumar said Pakistan was a big market of 180 million consumers; if trade relations were improved India could get access to Central Asian States. “I do not see any problem if both countries move ahead with the same pace trade relations can normalise in two years or so,” he added. Speaking about energy, he pointed out that in Bathinda, gas pipeline was there if both countries had good relations Pakistan could import gas through this facility. “Tajikistan have some 4,000 MW abandoned hydroelectric capacity, if relations were improved both countries could benefit from this opportunity. India-Pakistan relations’ ramifications are much more than trade, it is only a tip of the iceberg,” he concluded.
