Islamabad, Mar 20: Speakers at a Round Table Conference hosted by Institute of Policy Studies here on Monday agreed that there was a dire need to have national consensuses on the issue of granting most favoured (MFN) nation status to India.
Attended by a selected gathering of former diplomats, economic experts and intellectuals, the RTC titled “Trade with India, issues and approaches” was chaired by former senator and the chairman of the IPS Professor Khurshid Ahmed, whereas economic expert Dr. Manzoor Ahmed and Abass Raza were keynote speakers on the occasion.
Speaking on the occasion, Prof. Khurseed said, “The multidimensional issue with serious socio-political and geo-strategic implications can’t be seen in isolation”. About establishing trade ties and extending MFN status to India, he said that rather adopting a unilateral approach all the stake holders of the state should sit and talk together to build consensus on the issue bearing in mind the political, economic realities as well as the developments taking place in the region with reference to the US.
Regarding the trade liberalization, he said that unbridled, unmanageable and uncontrolled liberalization of trade has led to the global crisis.
Pakistan’s former envoy to WTO Dr. Manzoor Ahmad while citing the examples of Turkey and Mexico said that this perception was totally baseless that India being much bigger economy would shatter Pakistan’s entire economic system.
He argued that the economic integration and trade liberalization has lead to increase in trade. He said that Pakistan had been unfortunately reluctant and stayed out of these trade blocks. He was of the view that to increase trade and export Pakistan would have to think seriously about SAFTA besides softening the tariff regime. He was of the view that elimination of tariffs under SAFTA and SAPTA would also increase the regional trade by many folds.
Brushing aside the impression that granting MFN status to India would have adverse impacts on Pakistan’s economy, Manzoor said that the perception based on fear-syndrome was illogical as the 60% of Pakistan’s export was based on surgical, agriculture and textile industries.
“Textile, surgical goods, rice, fans and even pharmaceutical industry in my view are up to par and we can compete them any where in the world”, he said adding that there were many other things which Pakistan produces best than other countries in the world. He however maintained that automobile industry of Pakistan was a bit weaker and less-competitive. He said that there were other safety measures by which Pakistan can protect the automobile industry.
Senior economist Abass Raza while expressing his dissatisfaction over the incumbent regime’s decision of granting MFN status to India said, “Why the ministry of commerce and the government have chosen this time to extend MFN status to India when our own economy is in real doldrums”. “Industry on the verge of collapse, fast eroding industrial competitiveness, energy crisis, fiscal deficit, deteriorating law and order, war against terror are the major challenges the nation is facing at the moment”, he said and added that this was the critical phase of time whereby the government had decided to grant MFN status to India.
Regarding the softening of tariff regime, he said, “It is astonishing to note that on one side you grant MFN status to India and at the same breath government has decided to reduce tariffs by 10%, whereas Indian rate is 27%, so my question is that under the given circumstances what benefits you are supposed to gain out of it”. Raza was of the view that there was a special dispensation for India and Pakistan that they could not enter into special arrangements with respect to trade between them pending the establishment of their mutual trade relations on definitive basis. “Has the relationship between India and Pakistan been settled on definitive basis yet or not”, he asked.
Regarding the existing trust deficit between India and Pakistan, he said that when US aid was suspended to Pakistan, India was the first country to hail the decision. “Keeping in view the ground realities it is not understood as why the MCI and the government were so eager to extend most favoured nation status to India”, Raza said.
He was of the view that Ministry of Commerce have taken so many dubious decisions. “I have no feeling that granting MFN status to India by the government of Pakistan was a fair deal as some serious allegations of a deal involving 3 billion dollars have been reported, details of which would be according presented to the chief justice of Pakistan”, he maintained.
Some of the participants while citing the ever increasing energy crisis in the county said that Pakistan’s industry was not in position to compete Indian industry. They said that there was a dire need to have a national consensus on the issue of granting MFN to India keeping in view the vital national interests of Pakistan.
Speaking on the occasion, Kashmiri leaders Sardar Muhammad Anwar Khan, Muhammad Farooq Rehmani and Ghulam Muhammad Safi said that the Kashmiri leaders were not taken into consideration while taking the decision of granting MFN status to India.