Pakistani businessmen at IITF upbeat on MFN with India

NEW DELHI: More than 70 Pakistani businessmen participating in the annual India International Trade Fair (IITF) say granting of Most Favoured Nation (MFN) status to India will not only boost their economy but also drive down prices of essentials.

"There is a lot of optimism in Pakistan about granting of MFN status to India. Business and industry establishments have all welcomed the move," Nasiruddin Sheikh, Pakistan pavilion director and Chairman, standing committee on fairs and exhibitions of Federation of Pakistan Chambers of Commerce and Industry told Economic Times newspaper.

According to Sheikh, MFN status on both sides will help in not only promoting trade but also removing restrictions such as visa and freight barriers.

"Our trade lacks growth because of barriers like visa, freight restrictions through the border post. The status on both sides would provide a push to remove these restrictions," he added.

India, Pakistan annual trade is logged at $2.5 billion in 2010-11 and the two countries are targeting to double this in the next five years.

Sheikh said with MFN status, businessmen from both countries would also get additional benefits of multiple entry-visa and easy freight movements, but added that credit should also be made available and red-tape should be reduced.

He said raw material like cement, cotton, perishable food items would also come which would help in easing effects of inflation in India.

"Earlier you had a shortfall of onions that came from Pakistan. This time we have a shortfall of red chillies that is coming from India. We have surplus of cement and cotton that we can sell to India at the cheapest prices in comparison to anywhere in the world. So this MFN is good for all."

On India's side, he said products from big Indian companies across the sectors, especially ones in services, steel and electricity, would find a readymade market in Pakistan.

"We get a lot of expensive products due to freight that we have to pay to import; Indian products, by virtue of us being neighbours, would also be cheaper. You have an established industrial base here."

Many in the Pakistan delegation said there was optimism in the business community.

"I have been coming to IITF since 1998 and always dreamt of a day when I can sell my products at competitive rates," said Sayyada Dhanji, partner in textile firm Mars Hoor Gallery.

"Everything from Pakistan sells well here, but now with MFN I do not need to wait for IITF every year, I’m ready to sell throughout the year in India."

The Karachi-based businesswomen said she gets nearly 60% of her sales from India despite restrictive import duties.

"I have a base of 98 customers here, who place order after order. Crepe, cotton and lawn textiles with Pakistani embroidery and craftsmanship sell like anything in India."

Copyright PPI (Pakistan Press International), 2011