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Pakistan body urges Indian industry to boost bilateral trade ties

India's import policy with regard to consumer goods should be liberalised and linked to liberalisation of trade between Pakistan and India, Fazal-ul-Rahman Dittu, president of the Federation of Pakistan Chambers of Commerce and Industry, said.

Addressing an industry of the Punjab, Haryana Delhi Chamber of Commerce and Industry in New Delhi, Dittu said his chamber believes that trade between the two countries should be liberalised in phases. This, he said, will give some breathing time to the domestic industries which are likely to be affected.

''The opening of the trade with India will lend impetus to the integration of the SAARC economies. Being the major players in the SAARC, it devolves upon our two countries to join hands with each other and plan a more dynamic role to enable SAARC to meet the impending global challenges,'' said Dittu.

He said it would be a good opportunity for creating better understanding and goodwill among the people of both the countries and in paving the way for resumption of trade and commercial relations on permanent basis. Barriers in the bilateral trade should be removed so as to enhance the two-way trade. By removing the trade barriers, the people of the two countries can enhance bilateral trade to their mutual benefit.

Ashok Khanna, president of the PHDCCI, informed the industry gathering that consequent to the opening of the Wagha border, a conference on ''Wagha Border -- Opening Vistas for Indo-Pak Trade'' would be organised in Amritsar. Ondustrialists from Pakistan would participate.

The FPCCI chief invited a chamber delegation to visit Pakistan to study the market and encourage exports from Pakistan. Dittu remarked that looking at the bilateral trade relations between the two countries, one can see that the trade balance has all along remained in favour of India.

During 1997-98, exports from Pakistan stood at $ 90.58 million whereas exports from India were to the tune of $ 154.55 million.

Pakistan sold 25 items to India and purchased 28 items in 1997-98. Major exports to India were sugar, fruits and vegetables which attracted $ 75 million whereas major imports included pulses, oil seeds, chemicals and compounds, dyeing, tanning an colouring materials, tyres and tubes soyabean meal an iron ore.

The pattern of trade between the two countries is of peculiar nature and tradable items change every year, he added.

For instance, in 1996-97, Pakistan imported sugar, onion, potatoes in large quantities from India but in 1997-98 this trade reversed in bulk export of these commodities to India. Similarly, Pakistan's exports to India boosted up by 100 per cent in 1997-98, in comparison with the volume of exports in 1996-97. This huge increase was due mainly to bulk export of sugar to India, said Dittu.

He further stated that there are various factors responsible for the restricted and limited trade between the two countries. According to an estimate, the quantum of illegal trade between Pakistan and India currently is over Rs 2 billion annually. Trade is also taking place through third countries. For instance, bulk of sugar from India was imported into Pakistan through Dubai during 1996-97. Such imports through third countries add to the cost which should be avoided, he said.

The PHDCCI in its interaction with the Pakistan business community has found that there were certain misconcepions on the issue of subsidies. Khanna took this opportunity to invite a study team from FPCCI to visit India and study for themselves the subsidies and market conditions here.

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