Search the Internet          Tips  Sites: Finance, Investment

CII urges Pakistan to accord MFN status to India

Against the backdrop of the forthcoming historic Indo-Pakistan summit, the Confederation of Indian Industry has urged Pakistan to accord the most favoured nation status to India and reciprocate India's gesture granting MFN status to Pakistan.

CII has emphasised that both the countries should explore establishing a 'free trading agreement' on the lines of Indo-Sri Lanka FTA. This would not only set the stage for greater trade investment flows and strengthen economic relationship between the two countries, but also kindle new hopes and aspirations for the business communities across the borders, according to CII.

Enhanced economic cooperation would also contribute to stability in the region, CII has pointed out.

Reiterating that the bilateral trade between India and Pakistan has the potential to touch $5 billion by 2005 from the current $800 million, the Confederation has stated that enhanced trade between the two countries would to a great extent help in improving the political relations also.

However, according to CII, Pakistan only allows imports of about 600 items from India and out of which only a few of them are traded.

CII has also suggested several measures towards confidence building between both the countries. While emphasising that media could play a critical role in this effort, CII has also suggested creation of a forum facilitating regular dialogue between the economic journalists, academia, business personalities among others.

In this regard, CII has pointed out that the CII and the Lahore Chamber of Commerce and Industry had set up a joint task force in June 1999.

CII has also emphasised on setting up of well-equipped custom entry points along the border and also opening of more land routes to enhance Indo-Pak trade.

Removing visa hurdles would also facilitate trade ties, according to CII. Both the countries could also look at developing shipping links which could include agreements on coastal shipping, whereby a common bill of lading could be validated.

Private sectors in India and Pakistan, CII has pointed out could explore setting up joint ventures in the areas of agriculture, infrastructure, pharmaceuticals, refinery, oil & gas, iron & steel among others where immense opportunities for sharing technology and managerial skills exist.

With India's strength in information technology and the sector also ranking high on the agenda of both the countries, CII is of the opinion that the sector promises immense potential in terms of cooperation and India could look at contributing effectively in developing the IT sector of Pakistan.

Power sector could be another avenue for furthering economic growth between the two countries. Pakistan, in CII's view, could explore exporting surplus power to India and likewise India could also consider exporting surplus high-speed diesel to Pakistan.

CII has highlighted tremendous opportunities of co-operation in medical care and health sector. India, according to the Confederation, could explore coordinating with Pakistan in setting up of international level health centres and exchange expertise in this field.

YOU MAY ALSO WANT TO READ:
Musharraf may announce MFN status for India
Building bridges via trade
Indo-Pakistan Summit 2001: Full Coverage

Money

Business News

Tell us what you think of this report