Granting of non-discriminatory trade of Most Favoured Nation (MFN) status to India will enable Pakistan to save around $3 billion per annum on account of freight charges due to significant reduction in distances.
Customs sources told INP on Thursday that such an arrangement will also save up to Rs 300 billion on account of patents and royalty fees as it would be cheaper with India as compared to higher costs of rights from Japan, US and EU.
These sources said the modern industrialised India could be a gateway to industrialisation in Pakistan, especially in fish processing, agricultural products and electronics. As distance between Pakistan and India is lesser, trade between the two countries could pay rich dividends even on account of perishable commodities such as fruit, vegetables and other agricultural products.
The sources said many medicines are very costly in Pakistan and multi-national companies are sucking the blood of poor people of Pakistan by selling medicines on extremely exorbitant prices. However, these medicines are very cheap in India and Pakistan by opening up trade corridors can benefit from these cheap medicines. Pakistani markets could also benefit from some chemicals made in India which are of high quality. By opening up land routes, Pakistan could benefit from Indian products and save a lot of money in terms of travel charges on long Sea routes.
These sources said Pakistan could also benefit from the Indian IT market which provides education and other facilities at very cheaper rates. The auto sector of India is another area from where Pakistan could reap huge benefits. The local manufacturers have failed to provide vehicles to Pakistanis at affordable prices.
Another area where Pakistan could cash in is power sector of India. The sources said the energy starved Pakistan could benefit from India’s advances in energy sector.
Trade with India will also benefit Pakistan from defence point of view as the neighbouring country will think about its huge loss of economy and market before any aggression. The MFN status to India would be another BRB Canal which India will psychologically fear to cross.
Pakistan could also cash in on religious tourism potential. There are many Hindu places of worship in Pakistan. If facilities are provided, Pakistan can become a great destination of religious tourism for Hindus of India, Nepal and other countries.
MFN status to India will save $3b for Pakistan annually | Pakistan Today
so what say pakistanis..... shall we trade
The positive side of India-Pakistan pharma trade
According to the economic think tank, Indian Council for Research on International Economic Relations (ICRIER), there is an untapped trade potential of USD1.6 billion between India and Pakistan. Exploring this untapped potential can lead to boosting the trade and competitiveness of the two countries, a recent study done by ICRIER pointed out.
According to the study, the pharmaceutical market of India ranks as the third largest in the world in terms of volumes and in terms of value, it stands at fourteenth. During 2011, Indias pharmaceutical market was estimated at USD 21.7 billion. On the contrary, Pakistans pharmaceutical industry is the tenth largest in Asia Pacific and was valued at USD1.63 billion (2011). This reflects that Indias pharmaceutical market is nearly thirteen times the pharmaceutical sector in Pakistan. Opening up of bilateral trade can enable Pakistan to get a hold of a market which is many multiples of its own and has yielded remarkable results over the past many years.
Research and development remains at the core of a pharmaceutical sectors competitiveness. The study highlights that India spends nearly 6-8 percent of its revenues on research and development while the 30 leading Indian pharmaceutical companies spend almost 20 percent of their turnover on research and development. By joining hands with India, that is considered to be a big regional player in the pharmaceutical market, Pakistan can potentially rack up the benefits of Indias growing research and development capacities and experiences.
By the same token, since the pharmaceutical market in Pakistan lacks the presence of FDA approved plants for testing purposes, access to Indian pharma market having 150 FDA approved plants could even make it possible for Pakistan to use those laboratories and even save costs. Also, with little FDI flow between the two countries, high bilateral trade can also lend a hand in boosting bilateral FDI in the long term, the study added.
While the fears and apprehensions of small pharmaceutical players are justified, trading with Indian drugs will lead to survival of best quality medicines by fuelling competition in the industry, according to ICRIER. But to make that happen, removing trade barriers including wiping out the negative Indian import list maintained by Pakistan needs to be seen in a new light.
The positive side of India-Pakistan pharma trade | Business Recorder