Trade Between Pakistan and India - Daneyal Mirza - L2F09BBAM0240

8/2/2019 Trade Between Pakistan and India - Daneyal Mirza - L2F09BBAM0240

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TRADE BETWEENPAKISTAN & INDIA(+National Interest)

DANEYAL MIRZA L1F09BBAM0240 IR

SECTION A SIR. U.S RANA

2/17/2012


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1 | P a g e T r a d e b e t w e e n P a k i s t a n & I n d i a B y D a n e y a l M i r z a

he trade policies are liberalizing, Pakistan and India, the twoneighboring countries are making progress in making a trustworthy

relationship. Because a large number of people visited about fifty

Indian products and services in Lahore Exhibition Centre from February 11-

13-2012. First time in the last few years, Indian companies came to such atrade show in Pakistan. Furthermore, for the first time Indian Commerce

Minister Anand Sharma paid a visit to Pakistan along with 120 Indian

business firms and traders. The traders from Pakistani side are assisting the

government in bringing a balance in bilateral relations between the twoneighbors. Although India has not still permitted some Pakistani products to

be exported to India due to non-tariff barriers, Pakistan is mulling to give

India status of Most Favored Nation (MFN).

People of the duo countries, Pakistanis and the Indians want peacefulrelations with each other. Free trade between Pakistan and India will notonly reduce the tensions on their borders but it will also enablePakistanis security forces to focus in handling and tackling internal matters

such as terrorism etc.

It is quite an ideal time for both the countries to forget and forgave theirpast, moving their concentration on illiteracy and poverty, which areprevailing in the two countries. Millions of people are living below poverty

line across the borders, depriving of their basic necessities.

In order to overcome energy crisis, unemployment and increase itsper capita income, Pakistan is required of directed investment. Uponwhich, we should permit Indian investors, who have already made huge

investment in other countries.

Ultimately, it will serve Pakistan, particularly in real estate and energysector. The security of the any state in the todays global world isdepends on its per capita income of its citizens rather than of itsdefence capability and on the number of nukes it possess.

Despite having huge pile of nuclear weapons, Soviet Union was not ableto protect itself from breakdown #killing Point!

The living standard of the countrys citizens ensures security andfuture of the countries. Pakistan is blessed with hardworking people andtremendous natural resources. The only need of the hour is to harness

them by having friendly ties with neighboring states on mutual interests.

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One of most priority is change our foreign policy and security policydoctrine, if we want to go forward. Furthermore, it is time to close thechapter of past history and should move on thinking about the future. We

have to follow some good and long term policies if we want to become a

role model Islamic welfare state. With an expected jump in trade, a simultaneous increase in people-to-people and private-sector interaction is logical. Increased trade shouldbe seen as a starting point for reducing tensions between the two countries

and as a step in the right direction. The move also seems to indicate that

the countries are willing to separate economic issues from their more

difficult political issues, which can only help move forward the formal

dialogue they resumed this summer.

A baffling array of legal and practical barriers to exports between theneighbours has spurned unofficial trade worth up to $10 billion,

dwarfing official exchanges of $2.7 billion. But a recent rapprochement that looks to normalize trading relations

between India and Pakistan could end a decades-old system that stiflesbusiness and saps profits through networks of middlemen, moneychangers and smugglers.

For example:At old markets in Lahore, traders peddle whitening creams and hair dyes that

have journeyed from India to Karachi by sea bound for Afghanistan, beforebeing reloaded and smuggled along the Taliban-hit Hindu Kush to re-enter

Pakistan. Along the way a simple anti-wrinkle cream rises from 75 rupees(85 cents) to 160 rupees ($1.82), while black hair dye doubles from five to10 rupees. Tons of industrial chemicals and drugs travel into Dubai, where

their port of origin is relabeled to hide their Indian provenance before being

sent on to Pakistan. The process entails a mark-up of 15-20 percent, say

importers.

Pakistan has pledged to open its market to over 7,000 products from Indiaover the next three months and says India should have MFN status by theend of 2012, a step to removing discriminatory higher pricing and duty

tariffs.

A deeper economic engagementbetween the countries that is crucial forlasting peace in the region. People who are pro-trade have prevailed. For


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the first time our strategists are viewing economic security as asignificant element of national security.

The Pakistan Business Council estimates that enhanced bilateral tradecould bump its growth rate by 1-2 per cent. Experts predict $1.5-2

billion could be saved by routing imports directly into India and its 1.2billion consumers. For businessmen, their biggest problem is not being able to travel freely. I

want to export this item to India but I cannot go and cannot marketmy product. Visa is the main hurdle, said Aftab Ahmed Vohna, who sits

on the Pakistan-India standing committee for the Lahore Chamber of

Commerce.

ut powerful lobbies remain unconvinced that the hostilities that haveled to three wars since independence can melt away. Hundreds of

activists in Pakistani-administered Kashmir on Friday demonstratedagainst improving trade, and leaders in industries likely to lose out to opencompetition with India are loudly demanding an opt-out.

They fear that Pakistan will be flooded with cheaper Indian goods,strangling domestic business, which free trade with Indias big rival andPakistans close ally China has failed to do so.

Some Epic Reasons for supporting the Trade scene: Every person argues with me that Indian goods will close our

factories. I tell them if Chinese cheap goods cannot close ourfactories, Indias will not. #EPIC!

If 10% of Pakistani people purchase Indian goods , Pakistan will getonly 1 core 70 lakh people as customer but if 10% of Indian population

purchase Pakistani goods We people will get20 crore customer morethan our population. #HOWSTHAT!

Pakistan has a huge market in India, in VALUE ADDED PRODUCTS, e.g.frozen ready to eat naan, kabab, mithai, mango products, spice mixes.

These are just a few examples, suggesting that the more processing isdone in Pakistan, the more wealth is generated.

Economic emancipation ensures social security which in turnensures the security and stability of the Nation. They are the intangibleweapons against militancy and separatism.

The fact is a lot of middlemen make money and consumers paymore while governments lose money.

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Conclusion: It is high time that the two governments & those controlling policies

making, sit down & get rid of all the foolish barriers. Till around thefifteenth century, the Indian subcontinent was the worlds largesteconomy. It is time to restore it to that position. The British left the

subcontinent 6 Decades ago but the legacy has continued resulting in

the region becoming one of the poorest in the world. Hence It willbenefit both countries and do not forget that 21st Century is goingto be Century of Indian Subcontinent.

References:

Publication: India-Pakistan-trade-better-late-never

www.bbc.co.uk

www.newspakistan.pk/trade-pakistan-india

Dawn News

National Interest:

he national interest, often referred to by the French expression raison

d'tat (English: reason of the State), is a country's goals andambitions whether economic, military, or cultural (Wikipedia)

For me , National interest is really difficult to define clearly. Because the label,"National Interest" is so broad.

Therefore, the government tries to narrow the definition of "National Interest"

to:

1. Defense2. National Security3. Economy4. Interstate and Foreign Commerce5. Foreign relations6. And the state of general national affairs.

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The best examples that can be set in concrete with national interest are for

instance a federal energy policy. Since "energy" is at the root of just about

every issue from transportation, national defense, commerce and foreign

relations, not to mention national security etc. that its strategic in nature;

energy is a "national interest".

The reason why its so hard to nail down is that the national interest is sovaried and extends into so many corners of our daily lives, its sometimes hardto define only one area unless its a glaring area.

Another area would be defense. The defense of this nation requires a standing

military made up of several branches. Therefore it is in our national interest to

have a strong and capable military.

References:

Foreignaffairs.comBrecorder.comTribune.pk

Wikipedia

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Trade Between Pakistan and India - Daneyal Mirza - L2F09BBAM0240