Multan's traders, manufacturers plan to launch 'save the industry' drive

Local industrialists, manufacturers have planned to launch a "save the industry" drive and convincing the rulers not to shut the local industrial units and not to render millions of workers jobless, said Mian Iqbal Hassan former chairman of board of management of Industrial Estate and ex-senior Vice President of Multan Chamber of Commerce and industry (MCCI) while briefing this scribe on Tuesday.
He opposed the MFN status to India at the cost of closure of local industry and feared a deep rooted conspiracy on the part of India to cripple down Pakistan's economy. According to him, India is working on multi-dimensional strategy under the garb of bilateral trade. The government should take all the stakeholders into confidence before moving ahead, he said. He said that Kashmir problem and water issues are yet unresolved and demand attention before granting MFN status to India. He termed extension of MFN status to India as a serious matter, pointing out that the government has taken the decision in haste.
India had been trying to destabilise Pakistan through all possible means and conspiring to turn it into a desert by denying its share of river water, the rulers in Islamabad were selling Pakistan's vital interests to New Delhi instead of protecting future of nation.
He said it was a pity that the government was taking such decisions under US pressure at the cost of vital national interests. Mian Iqbal said no wonder the industry and trade bodies were overjoyed over Islamabad's move to see their personal interests fully served while Pakistan's industrialists especially the auto industry, ceramics and pharmaceuticals industry had been greatly shocked fearing their obvious thrashing by a much bigger competitor.
He said that Pakistan's industry and agriculture had been badly affected because of high electricity tariff and POL prices besides shortage of irrigation water. He said the cost of production of industrial as well as agricultural products was high as compared to India.
Therefore, India would be in a position to flood Pakistan's markets with its cheaper products. As a result, the Pakistan industry and agriculture both would suffer. Besides, India would also be in a position to withhold essential items as and when it desired and charge the prices of its choice.
So, we would be greatly dependent on India, he said. Jobs of almost 70 per cent population of the rural areas of the country are at risk due to granting of MFN status to India, he said. He has suggested Islamabad to impose regulatory duty on Indian goods so that Pakistani growers could compete with their Indian counterparts, who are availing higher subsidy by the Indian government.
He said that Pak-India trade would benefit the Indians only, calling it 'one sided trade'. He said generating jobs opportunities should be the top priority of the government, as it will enhance the purchasing power of consumers. New Delhi provides around $30 billion annual subsidy to its farming community contrary to the provision of WTO regime, which gives them huge advantage over Pakistan, he said. He said that urea price in India is 280 Indian rupees per bag, equivalent to around 500 Pakistani rupees. The price of urea in Pakistan is Rs 1,800 per bag.
He said India is giving huge subsidies on urea. He said DAP rate in Pakistan is Rs 4,000 - Rs 4,200 per bag, but it is sold in India at 920 Indian rupees, equivalent to 2,000 Pakistani rupees. He said these two important fertilisers are the main input in all crops, particularly wheat.
He said that cotton farmers would face an uphill task to sell their produce to spinners as the cost of cotton production in India is much lower due to huge government subsidies. He said Indian government is taking only Rs 1,700 per month electricity bill from the farmers for tube-wells and in our country up to Rs 150,000 electricity bill is common. Mian Iqbal said diesel and power rates for farmers in India are very low and in some states farmers pay Rs 1 per unit against Rs 6.68 paid by Pakistani farmers. He said in case of wheat, farmers use three bags of urea and one bag of DAP per acre. He said a Pakistani farmer spends Rs 5,600 on application of urea and Rs 4,300 on DAP per acre. In India, the cost of both fertilisers for wheat crop is merely 2,443 Pakistani rupees, he said.
He said even the higher support price of wheat in Pakistan fails to bridge the difference. He said the support price of wheat in Pakistan is Rs 950 per maund, while in India it is 818 Pakistani rupees per maund. This lower support price is compensated by the low electricity and diesel costs, he said. "In free trade with India, we might see Indian wheat capturing Pakistani market at the expense of local farmers."