news details |
|
|
| Plan to improve bilateral ties through trade | | | If all goes well India and Pakistan plan to soften the bilateral tension through increase in trade and export and import.The establishments in New Delhi and Islamabad have been suggested by the political analysts and experts that the spirit bilateralism could be further strengthned if the two sides promote trade transactions.If one takes into account the import and export policy that exists between India and Pakistan one may come to the conclusion that the policy has restrictions and limitations.Anyhow the latest plan of India to export petrol and diesel to Pakistan to help it meet energy needs and to open up a new market for Indian refiners such as giant Reliance Industries may ultimately prove helpful in bridging the gap that exists between the two neighbouring countries.That too when“Pakistan is keen to import refined petroleum products from across the border to save costs,” according to a report based on an Indian government official with
“direct knowledge” of the plan.
India imports about three-quarters of the oil it consumes but its refining capacity has expanded rapidly, making it a key player in the international market.Once the stage was set for exporting oil to Pakistan it will open up a new market for large refinery players such as Reliance Industries and Essar Oil, Indian officials believe greater trade would force the nations to maintain friendly ties and that India is in a position to meet Pakistan’s fuel demands Islamabad would welcome India's plan as it would allow Pakistan to get oil and oil products at a cheaper rates than it gets while importing oil from other countries.
Pakistan has a 12-million-tonne refining capacity which satisfies only half of its annual requirements, while India exports about 25 percent of its 185-million-tonne refining capacity, according to official data. This way once Islamabad accepted oil from India the Indian companies would be able to meet the entire demand of Pakistan as it requires additional 12 million tonnes of oil which India can export.If anyone is sceptical about the power of trade in smoothening and softening tension one needs to refer to the reopening of Srinagar-Muzaffarabad and Poonch-Rawalakot trade routes which,since 2005,have enabled traders on both sides of the LOC to export and import a variety of consumer items.The trade between the two Kashmir's would have touched new high had the currency and banking problems been resolved.
Once the level of trade between two neighbouring nations is increased it helps the two to learn to depend on each other.Not only this the importing country gets the advantage of getting consumer items at a cheaper rate enabling it to keep inflation under check and the country exporting consumer items harvesting the benefit of increased trade through a convenint channel.Once the level of interdependence on import and export increased the two countries avoid kicking up controversies that could endanger trade links.Hence it would be advantageous for both India and Pakistan if the two sides keep the channels of trade smooth and very wide.Indications are that once Pakistan enjoyed the benefit of importing petrol and diesel from India Islamabad may persuade New Delhi on the need for removing restrictions on import-export policy that has been in practice during the last couple of decades.It would be equally better if the two sides sort out problems
that have delayed hassle-free banking transactions so that traders on eitheer side of the LOC in Jammu and Kashmir do not have to bank on barter system which has its limitations and handicaps.Indications are that the relations between India and Pakistan may improve because a large number of bilateral meetings at various levels are on the cards during the next six months.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| |
|
|
|
|
 |
|
|
|
|
STOCK UPDATE |
|
|
 |
| BSE
Sensex |
 |
| NSE
Nifty |
|
|
| |
CRICKET UPDATE |
|
|
|
|
| |
| |
|
|
| |
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
