By giving MFN status to India in haste and without approval of the parliament, the government would endanger Pakistan''s economy, culture and traditions. This was the consensus, which emerged at a seminar on opening trade with India, held in Lahore last week, according to details available here on Saturday.
Among the participants were: a former chairman of Pakistan Steel General (r) Muhammad Javed, Chairman of Pakistan Association of Automotive Parts Accessories Manufacturers (PAAPAM) Nabeel Hashmi, Dean of Social and Behavioural Sciences of Punjab University Dr Muhammad Hafeez, Chairman of Agri Forum Pakistan Ibrahim Mughal, and President of Together for Tomorrow Dr Muhammad Asim.
They were of the opinion that the bureaucracy is raising a bogey of consumerism and consumer interest which is a fake argument as India still provides subsidy to its industries while any country under WTO providing subsidy cannot be given MFN status.
They pointed out that India officially opened its markets for Pakistan in 1996 by granting it MFN status. However, its peculiar Pakistan-specific import tariffs and trade barriers restricted Pakistan''s exports to very low levels. "Now, we would open our markets for India if we pride it with MFN status," said General (r) Javed, adding that "with our liberal import policy, Indian goods would flood our markets without corresponding increase in our exports."
President of All Jammu and Kashmir Muslim Conference (AJKMC) and former prime minister of Azad Jammu and Kashmir, Atiq Ahmad Khan earlier said that it is very unfortunate that the government''s policies do not match the national interests, which is creating chaos and panic among the masses. Giving MFN status to India is equal to surrendering Pakistan''s economy. Any trade initiative with the neighbouring country must be linked with the solution of various issues, including Kashmir," he said.
"The decision to give MFN status to India is announced hurriedly without consulting Kashmiris who had been battling for freedom and were with Pakistan despite offering sacrifices of over 600,000 lives," Atiq said, adding that though the AJKMC never opposed Pak-India trade and other bilateral relations, it was of the view that there were various important issues such as Kashmir dispute, Kishanganga Dam, Wuller Barrage, Sir Creek, etc, which should be resolved on priority basis first.
"As India itself wants to resolve these issues on priority basis, why PPP government is anxious to promote trade relations with it prior to resolution of these issues?" he said, and pointed out that India despite giving Pakistan MFN status in 1996 imposed non-tariff barriers (NTBs) against the country. He suggested that Pakistan should use Kashmir issue which, he said, India itself wanted to resolve, for resolution of other bilateral issues.
"India wants to weaken Pakistan''s economy and at a later stage might seek even deployment of its security forces on Pakistani soil under the pretext of guarding its trade convoys. India also plans opening of banks in Pakistan in order to make the country''s economy dependent on it. So Pakistan should closely watch this conspiracy and devise an effective trade policy by linking it with the Kashmir issue," he said.
PAAPAM Chairman Nabeel said that Pakistani''s bureaucracy is making important economic decisions in haste. Commerce Secretary Zafar Mahmood is consoling Pakistani manufacturers that he would not put many industries in negative list, but on the other hand, on his visit to India he said that the negative list would be valid for a year only.
He said that the government of Pakistan is making Pakistan a trading economy at the cost of revenue-generating local industries. Nabeel suggested that in the first phase, trade with India should be initiated with the import of raw materials, machinery and equipment, moulds, dies, etc. Further, allow transfer of technology through joint venture and technical assistance agreements and thus make Pakistan auto industry competitive.
Punjab University Dean Dr Muhammad Hafeez lashed out at the government policies and said that it is evident that planning is being made to destroy Pakistan socially, politically, culturally, economically and administratively. Pro-active approach by young generation of Pakistan is required to save the country.
He said that the developed world is using rhetoric of global village etc to further their designs of pressurising the underdeveloped economies to gain control and rule the world through policies instead of going into physical conflicts through wars, etc. Chairman of Agri Forum Ibrahim said it is very unfortunate that Pakistani delegations have always failed to safeguard the interests of Pakistan whereas they have advocated Indian interests. He said that India through a systematic approach will supply agricultural products at highly competitive prices leaving Pakistani farmers with no choice but to head for cities to start trade instead of farming.
After a few years, he said, only the Indian businesses, capturing the agricultural markets, will rule the roost and will dictate their terms and only then Pakistani public will understand the conspiracy behind MFN. Participants said it is high time Pakistan demands of India to remove all non-tariff barriers as it is expecting from Pakistan in the beginning just after being granted MFN status, whereas Pakistani manufacturers have been waiting for the equal treatment since 1996 after getting MFN status. They said that cement and textile sectors are the best example where Pakistani cement manufacturers have been demanding removal of non-tariff barriers but even the Pakistani government could not persuade the Indian government on this issue.
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