Indo-Pak trade on the brink of realisation

For the first time in the over 60 years history of Indo-Pak relations, the businessmen on both sides have seriously started talks/deals after the expected phase out of negative list of trade by the end of this year.
The traders, exporters and importers in the two South Asian neighbors have started making trade deals and future planning in various sectors in view of the opening of border for business by December 2012 as the government has announced to normalize bilateral trade.
The concerned people from all those sectors which directly or indirectly are expected to be affected by the imports from the neighboring country, have also started taking measures aimed to save their sectors as the government and specially Ministry of Commerce decided to keep the list no more affective by the end of this year.
Though the ministry has notified over 1200 items in the negative list on the request of various sectors but all the said items would be importable after the announced phase out timings. Despite the reservations of various industries including auto, pharmaceutical, rice and others, the cabinet has approved the summery forwarded by the ministry Okaying the phase out plan.
As the trade normalization process nears, the sources claimed that the exporters and importers on both sides of the birder have started interactions with their counter parts. Interestingly, the import of rice from India, where the product is comparatively cheaper, has already started via Azad Kashmir.
According to sources, various companies of Monocycle manufacturers/assemblers have almost finalized planning to import parts from India, which would later be reassembled in the country as the Indian motorbikes were comparatively cheaper.
Besides, the sources said, the Indian motorbikes would have more verities and value addition as compared to the existing vehicles in the country. Apart from the giant motorbikes manufacturers like Honda and Suzuki, the small groups and companies of the sector were likely to go for imports from the neighboring country.
On the other hand, sources claimed, Nokia products, which were mainly assembled/manufactured inChina nad later imported to Pakistan would also do the same business from India. This way, they said, the Nokia cell phones would be cheaper by Rs 200 to Rs 300/ set as compared to the existing prices in the country. Interestingly, the rice exporters of the country who were against the trade normalization process have also reportedly changed their minds after the sudden hike in price of the product in international market.
According to rice exporter the prices of the highly consumed commodity has jumped by 15 percent in international markets despite of the lower price of Indian rice. The price of Basmati in local markets was also increased by 10 percent approximately.
The exporters, who were fearful about the influx of Indian cheaper rice in the local market, were seen confident of its share in the international market after the jump in price. They, sources claimed, were now thinking of having trade links with the Indian rice exporters and importers.
According an exporter, who did not want to be named, said that over 300 businessmen from various sectors were planned to visit New Delhi next month during the scheduled event of “Life Style Pakistan’ where fruitful Business to Business meetings and trade talks were likely be held with their counters parts in India.
According to sources almost 300 exhibitors have applied for Indian Visa while another 100 businessmen were also scheduled to attend the forthcoming important event in Delhi.