LAHORE: Lahore Chamber of Commerce and Industry (LCCI) and Federation of Indian Export Organisations (FIEO) Saturday agreed that infrastructure issues were hindering Pakistan-India trade growth. The consensus was developed at a meeting between LCCI and FIEO here at LCCI, where the FIEO President Rafiquee Ahmad spoke on behalf of Indian exporters, and Chamber's President Farooq Iftikhar presented the case of Pakistani businessmen, while, SAARC Chamber of Commerce and Industry's Vice President Iftikhar Ali Malik and others also spoke on the occasion.
Both sides were of the opinion that land route was most competitive as carrying a container through Wagah costs much less than via Mumbai-Dubai-Karachi. They stressed the need for provision of better infrastructure to facilitate trade through closest route.
They said that both the countries should try and explore ways and means to create synergies and not get overly competitive. Improved bilateral ties would give necessary oxygen to South Asia Free Trade Zone, which would open vistas of opportunities for countries of the region.
The FIEO President urged Pakistani businessmen to avail investment opportunities available in India, adding that with the likely grant of the Most Favoured Nation (MFN) status by Pakistan and phasing out of the negative list, the Pak-India bilateral relations were expected to rise to $6 billion in the next three years from the existing level of $2 billion. Talking about airlink between the two sides, he said that he would press upon the Indian government to open up more flights to Pakistan.
On this occasion, Farooq Iftikhar said Pakistan and India could cooperate in many fields including transfer of technology, raw materials, IT sector, tourism, agriculture and medical, citing that cooperation in these areas could change the fate of the people living in the two countries.
The LCCI, he added was formulating a strategy keeping in view the critical position of Lahore in days to come with regard to direct and greater trade between Pakistan and India particularly through Wagah border. He said that Pakistani businessmen were aware of the fact that free trade between Pakistan and India would pose relatively tougher challenges to the industry in this part of the world. "To ensure sustainable trade between two countries with an aim to have long term benefits of greater regional trade, both the sides need to supplement each other's economies," he observed. Both sides could mutually identify areas of economic cooperation which may lead to joint ventures, out-sourcing and sharing of technology, he added.
The Chamber's President said Pakistan's exports to India were just one-sixth of that imported directly from India, asserting that once the quantum of indirect trade was shifted to direct trade, this proportion would go much more in favour of India. "We need to expand trade relation in phases. Like initially certain raw materials and semi-finished goods should be imported from India," he maintained. Sharing the concerns of Pakistani exporters, he highlighted enormous problems due to Non-Tariff Barriers, adding that LCCI wanted preferential treatment from Indian authorities so that fruit of greater trade might be adequately shared among the businessmen of both the countries.
Pakistan's exports to India mainly consist of fresh fruit, cement, polycarboxylic acids, cotton yarn, light petroleum distillates, carbonate, unwrought lead and leather etc. Imports from India comprise cotton, cyclic hydrocarbons, soybean oil-cake, tomatoes, sugar, dried vegetables, polymers of propylene, tea and synthetic organic coloring materials etc.
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