KARACHI:
Pakistan Business Council has stated that Pakistan’s Non Discriminatory Market Access to India will lead to mutually beneficial trade relationships between the two nations, if India agrees to ease its Non-Tariff Barriers.
In its latest report on Pakistan India trade, PBC, which represents Pakistan’s 47 largest enterprises including multinationals, said the country must build capacity to support its exports and protect the local industry from subsidised imports from India.
The report also said that details and time-frame of India’s promised concessions to Pakistan must be determined and considered before granting NDMA.
India’s concessions to Pakistan must be consistent with its concessions to other South Asian Free Trade Area (SAFTA) countries such as Bangladesh and Sri Lanka to ensure Pakistan gains fair access to the Indian market post-NDMA.
SAFTA came into force in 2006 resulting in tariff concessions by both, India and Pakistan along with the other South Asian neighbours.
India granted Most Favoured Nation (MFN) status to Pakistan in 1996, which Pakistan has to reciprocate being a signatory of the World Trade Organisation (WTO). The final step towards normalised trade relations between the two countries is thought to be NDMA status for India to be granted by Pakistan. The PBC study argues for caution in granting India NDMA given the current challenges faced in Pakistan-India trade.
Pakistan’s exports to India grew from $158 million in 2004 to $392
