India NTB about enhancing trade

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Despite opening of special trade gate at Wagha Border and tall claims of liberalising bilateral trade with India, local exporters are facing multiple non-tariff barriers (NTBs) imposed by India in way of Pakistani exports, Pakistan Today observes.
Pakistani exporters point out that the much talked about trade gate (Integrated Check Post) was opened at Attari on April 13, which encouraged the bilateral trade between two neighbours. But the Indian government had restricted the movement of Pakistani trucks by imposing ban on trucks having more than 10 wheels or 40 tons loading capacity.
Speaking to Pakistan Today, local exporters highlight that Indian government has halted the movement of all Pakistani trucks having loading capacity of more than 40 tons with a stroke of pen, which resulted in that a number of Pakistani trucks having loading capacity of more than 80 tons has stuck up at Wahga Border.
They further point out that even after the delayed opening of trade gate, truck scanners installed at Integrated Check Post are not functional that created another hurdle in the way of Pakistani exports to India. They believe that despite all government claims at both sides of the border, environment at Wahga Border is not conducive for business and trade as infrastructure is not efficient enough to handle the increased volumes of trade.
Pakistani is primarily exporting cement and gypsum to India through Wahga Border, but industry pundits in these sectors are also unhappy with the trade facilities on the other side of border. Cement industry gurus underscore that cement is one the major commodities that is abundantly available in Pakistan and can be exported to India through this land route. But, most of the available transportation for cement has a loading capacity of more than 40 tons. They said availability of 10 wheeler trucks with a loading capacity up to 40 tons for cement is limited and this restriction will increase the transportation cost for not only cement but also for other commodities as well, resulting in the cement industry being unable to compete in India, they underlines.
They further points out that Indian authorities have already imposed numbers of NTBs, like license restriction, lack of infrastructure, etc., due to which cement industry is unable to perform. Now, another non-tariff barrier shall not help the industry to increase its exports and earn much needed foreign exchange for the country resulting is huge balance of trade deficit in favour of India.
Official data available on the website of All Pakistan Cement Manufacturers Association (APCMA) shows the cement exports to India were around half million ton during 2011-12, while industry experts believed that once all NTBs were removed, Pakistani exporters could swell cement exports to five million tons.
Cement exporters point out that despite opening of separate trade gate only two 10-wheeler trucks loaded with cement could cross border so far, while various cement consignments are waiting to cross border. This whole situation clearly indicates the infrastructure position, they added.
A cement exporter on the condition of anonymity disclosed that earlier Pakistani exporter had to bribe Indian officials to get their consignments Customs cleared and unloaded in India and for that purpose they had hired Indian to negotiate with local authorities. He pointed out that cement manufacturers lobby in India was so powerful that it influence its government department to delay Pakistani exports, which ultimately increases export cost and made Pakistani merchandise uncompetitive.
He further revealed that Indian government officials were so clever that they received bribe from both Indian and Pakistani businessmen on pretext of stopping or expediting release of merchandise. These all NTBs create hurdles of Pakistani exports, he concluded.

1 COMMENT

  1. Indians are smart…there will be one way traffic..all of our money will go there…but the indians will not invest a dime in Pakistan. Our govt has sold us out.

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