Sheela Bhatt in New Delhi
"Between World War II and now, look at Europe. European Union and Euro money are reality. Look at Japan and America. Inspite of Pearl Harbor and dropping of the nuclear bomb, America and Japan are the biggest trading partners. Let the politics of two countries spare the businesses".
Those were the words of Senator Ilyas Ahmed Bilour in Hotel Marriott, Islamabad, one day before Vajpayee invited General Pervez Musharraf. Being the outgoing president, he was addressing the meeting of India-Pakistan Chamber of Commerce and Industry.
The meeting was attended by the 35-member delegation of businessmen from India led by Chirayu Amin, president of Federation of Indian chambers of Industry and Commerce (FICCI). Last month, when the cease-fire in Kashmir was failing and casualties were increasing, the Ministry of External Affairs had given a political clearance to the delegation, led by FICCI to Islamabad and Lahore.
The Indian delegation, which received a grand reception in Islamabad and Lahore are euphoric about the entire experience.
"Wahan jakar Kargil ki yaad nahi aayi! Pakistan is importing tea from Kenya at a high price. What's wrong if they get it at lower price from India? It will not aggravate Kashmir issue", says N D Rajpal, resident director of Alembic, one of the delegates who has just returned from Pakistan.
Rajpal himself belongs to Dera Ghaji Khan, a village in eastern Pakistan. He says, "Business with Pakistan must increase because already a huge illegal trading is on between India and Pakistan via Dubai and Afghanistan. Both the countries are losing revenues in crores and illegal smuggling of drugs is dangerous too. Who will be accountable for spurious drugs?" he asks.
In February 1999, when Vajapayee went to Lahore, he had announced the formation of the India-Pakistan Chamber of Commerce and Industry. Accordingly it was formed in April 1999 and Ilyas Bilour, a seasoned Pakistani businessman, became its first president.
Unfortunately, before this body could start lobbying, Kargil happened. India was not talking to Pakistan at any level. After almost two years of passive existence, Pakistan Chambers of Commerce and Industry invited FICCI.
On May 22, 2001, rich businessmen and powerful traders from both sides met in Islamabad. Both the sides were well prepared to initiate a new chapter by suggesting some innovative ideas.
The delegation soon went on to become lead stories in The Dawn and The Nation.
Indian businessmen also met Finance minister Shaukat Aziz and Commerce Minister Abdul Razzaq Dawood.
Almost all the delegates said that the business potential between an enemy country is hard to ignore. According to the study, "Freer Trade in India: Its Raison Detre and Impact" by Karachi Chamber of Commerce and Industry, realisation has been growing in Pakistan that extending the Most Favoured Nation's status to India will be beneficial to Pakistan.
The imports of products like iron ore, textile machinery and steel products will meet Pakistan's requirements. In addition to that, import of wheat, spices, tea and other edibles will help consumers to get the products at a cheaper price.
Pakistan can also get the new market for surgical instruments, fruits and vegetables, cotton yarn and textiles.
According to the study by FICCI:
- Pakistan is importing iron ore at a high cost from Brazil and Australia.
- Pakistan produced cars and scooters are priced 50% higher.
- Pakistan is the second largest tea consumer with market size of around 130 to 150 million KG per year.
- Indian drugs are 30% cheaper.
- Though they don't have any high-tech industry, Pakistan has banned the import of textile machinery from India. Pakistan textile manufacturers import the machinery mostly from Germany.
- Pakistan's demand for tyre is one million, it produces 2 lakhs tyres only. Still, they have imposed 46.6% duty on popular Indian truck tyres.
- Pakistan imports 90% of the chemicals.
- Pakistan has competitive advantage in cotton textile, India has an upper hand in silk and synthetic fibre.
- Indian coffee is smuggled into Pakistan in a big way. The trade needs an official recognition.
- And, if India -Pakistan agrees for Agro-partnership ,according to study by FICCI, it would generate
- 2.7 lakhs job in India and 1.7 lakhs job in India.
According to Chirayu Amin, president of FICCI, unofficial trade between India and Pakistan stands anywhere between $1 billion, while official imports of Pakistan from India in 1999-2000 was Rs 2.96 billion. India's exports to Pakistan stood at Rs 4.05 billion.
Currently, 600 items are allowed for imports in Pakistan. According to FICCI, Indian goods are exported officially from India to Bandarabbas, sent to Kabul and later to Peshawar. Large portions of third country trade is taking place via Dubai and Singapore.
Using this route, products like Marico's hair oil to Indian tyres are sold in Pakistan. According to Anita Sarkar, a delegate and FICCI's deputy secretary says, " India-Pakistan trade is a reality. Businessmen from both sides are for money. Our aim is to de-link politics from business. Jootiyan (ladies shoes), Karachi suits and dry fruits can soon become a fad in India."
According to Sureshchand Mathur, a delegate and Executive Director of Cold Rolled Steel Manufacturers of India, "Businessmen should be heard and politicians should be on a back-burner. We want to sign the joint WTO strategy. Those who are brain washed are talking against trade with Pakistan. Kashmir is a non-issue. Nobody talked about it in the meeting of businessmen. The issue is a creation of politicians.
Both the governments have taken a position and now it is difficult to climb down. Ordinary people were telling us in Pakistan that the Army wants to keep alive the Kashmir issue. Both sides are keen on resuming the trade and people should enjoy the benefit of free trade."
The truth is that both sides want a country specific and not a city specific visa. India wants the Most favoured nation (MFN) status which was again denied by the commerce minister.
From May 21, 2001, FICCI chairman Chirayu Amin has taken over as the President of the Indo-Pak trade organisation. In his speech in Islamabad he proposed that on both the sides of the border near Amritsar, warehouses should be built which can facilitate trade between the countries.
Another suggestion was to have an investment protection and investment promotion treaty between both the countries.
Apparently, Dr Reddy's Laboratories has seriously pursued the idea of opening a multi-speciality clinic in Pakistan. While Telco had a good business offer for Pakistan, Bangalore's Compo chocolates also has a market there. " Each and every delegate in the meeting felt that Kashmir or no Kashmir, business ties matters", says Rajpal.
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