Karachi Chamber of Commerce and Industry's high-level business delegation headed by Junaid Esmail Makda, Vice-President, met Arvind Mehta, IAS, Joint Secretary Commerce, Government of India at New Delhi and exchanged views on liberalisation of visa and enhancement of bilateral trade prospects.
According to KCCI's press release, Junaid Makda informed that it was on the agenda of KCCI delegation to have detailed discussion at Indian Commerce Ministry on possible co-operation of Indo-Pak private sectors to enhance trade. He informed that in the KCCI proposals submitted by him to Zafar Mahmood, Commerce Secretary, a detailed annexure on trade with India was furnished. He informed that he was heading the KCCI delegation to India for advocacy to promote and strengthen bilateral trade ties and sign the agreement of co-operation with Bombay Chamber of Commerce and Industry to establish Bombay-Karachi Joint Chamber of Commerce and Industry as desired by the two Governments through respective commerce ministries.
He optimistically stated that the co-operation between KCCI and Bombay Chamber will open the avenues of new facilitation as both chambers will issue the visa recommendation letters, exchange trade information and delegation on regular basis. Makda informed the JS Commerce that KCCI is playing its facilitation role and issues regularly the visa recommendation letters for its members to visit India. He expressed his concern over prolonged timeline for issuance of Indian visas.
The Indian High Commission was taking time for over 3 months to process the visa requests. He said that around 400 applications for visa recommendation are lying at his desk that are not forwarded as the recommendations submitted earlier still awaited at Indian High Commission. He highlighted that KCCI also issues Visa Recommendation Letters to the Indian businessmen who wanted to visit Pakistan on the request of their Pakistani buyers who are the members of KCCI and Pakistan High Commission in New Delhi issues business visas within a week.
Commenting on the suggestion to identify businesspersons for multiple visas by JS Commerce, he suggested do not restrict the quantity rather it should be open for all genuine businesspersons maintaining trade on reciprocity basis. Vice-President, to improve bilateral trade, suggested ease and remove Non Tariffs barriers from Indian side so current huge trade imbalance could be narrowed down in paving the way for Pakistani exports. He also voiced to review the sensitive list under SAFTA which has a blocking effect on Pakistani goods to enter into Indian markets.
Informal trade of US $2~3 Billion (via Dubai) may be converted to formal trade. Import of BT Cotton and Textile Machinery should be allowed. All positive list items trade to be allowed through land route which is cost effective, besides Wagah-Attari Border, the Monabao-Khokrapar border adjoining the province of Sindh should be opened for two-way trade.
He also asserted upon the need of according due recognition to the Chambers of Commerce with greater interaction among Indian and Pakistani chambers and exchange of information and frequent visit of business delegations. He also demanded to lower the ratio of visa rejection. He said that many items which are imported from China can be imported from India due to cost effectiveness. He also highlighted the possibilities of Investment Opportunities in Pakistan, particularly in Sindh province.
Even though both countries are members of the South Asia Free Trade Area (SAFTA) established in January 2006, trade between the two countries is very small and the scope for gains from increased trade correspondingly large. Constraints on economic integration include high tariff and non tariff barriers, inadequate infrastructure, bureaucratic inertia and political barriers on disputes.
India's tariffs remain high, especially for goods of particular interest to Pakistan, such as textiles, leather and mineral onyx, and non tariff barriers are substantial. There are several other constraints in transportation linkages, visas and cumbersome payments and customs procedures.
Joint Secretary Commerce, Arvind Mehta, IAS, earlier, welcomed the KCCI delegation at the Ministry. He said: "We are on same page to increase the business/trade between two countries and our objectives are to make trade easier." He agreed to ease and simplify the visa process and stated that he will put pressure on his Ministry and Ministry of Home Affairs in this regard.
He focused that there are two major problems, one visa issue and other the negative and positive list which should be eventually addressed. SAFTA has been ratified by all members; however, even after ratification, the Pakistan side has not implemented the decisions. He asked the Vice-President to approach Ministry of Commerce for implementation of the decisions which is a deficiency at their end. If any Non-Tariff Barriers are on Indian side should also be highlighted.
He said he acknowledged the visa problem and trying to solve it. He suggested the Vice-President KCCI to identify prominent businesspersons for multiple-entry visas who are vibrantly engaged in the businesses on whom KCCI had firm confidence and forward this list to Joint Secretary Commerce through Minister (Trade) Pakistan High Commission his recommendation and he will submit the same to Ministry of Home Affairs to accord multiple visas exempted from Police reporting.
This will also help Ministry of Commerce to identify the companies who are coming through the recommendations of official chambers. JS Commerce sought proposals accordingly and stated that a reciprocal list will also be prepared from Indian side. He said that this may follow supplementary lists of businesspersons. He asserted that visa procedures must be liberalised; KCCI should give some workable proposals. Arvind Mehta appreciated that linking of Bombay Chamber with Karachi Chamber will bring meaningful and productive results.
He sought the proposals and suggestions from KCCI and requested to forward all the communiqué through Pakistan High Commission, keeping in mind, that the desired actions will be based on reciprocity. Joint co-operation on Information Technology sector, iron and steel and agriculture sector was also discussed. Naeem Anwar, Minister (Trade), High Commission of Pakistan in India, Dr Nisha Taneja, Indian Economist and KCCI delegates Yasin Saya, Asif Bega and Khadim Rasool also participated in the said meeting.-PR
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