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| Discordant voices over Pak 'MFN' status to India | | | Sushil Vakil | 11/7/2011 10:06:14 PM |
| At long last Pakistan is on its way to stablise relations with India. The latest Pak cabinet decision to grant "Most Favoured Nation" status to India is indeed a significant step in improving not only business relations but bilateral ties also. The decision is likely to increase the two way trade from two billion to nine billion US dollars as predicted by the World Bank. Lamentably, the development which reflected the positive environment in ties between the two sides was marred soon as Pakistan's external affairs ministry issued contrardictory statements. There are important reasons to believe that Pak government went into denial mode only after gauging the mood of fundamentalist and army officials. By and large, Pakistan's efforts are being lauded as it was for the first time that Islamabad has started moving forward in enhancing confidence building measures with India. Well begun is half done. Incidently, it is for the first time that Pakistan has kept the 'K' word aside for the time being and focussed on trade and development. India had granted Pakistan MFN status way back in 1996, but Islamabad had so far held out on reciprocating the same due to opposition from some trade lobbies and religious and hard-line political parties which contended that such a move would harm the country's stand on the Kashmir issue. The decision though taken after sixteen years has been welcomed by US, China and a host of countries with the hope that it will help in normalising the relations between the two hostile neighbours. .The decision taken by the cabinet under prime minister Syed Yusaf Raza Gillani has brought cheers to business community in both the countries. However, it comes in the wake of severe opposition from several banned jihadi groups, including the Lashkar-e-Taiba, Hizb-ul-Mujahideen, Jamati Islami and many Kashmiri separatist leaders.
Reacting to Pakistan Foreign Minister Hina Rubbani Khar's statement, the Kashmiri leaders have urged the government of Pakistan to put on hold the decision of granting India the most favoured nation status until India resolves the long-out-standing issue of Kashmir peacefully in accordance with Kashmiris' aspirations. Chairman All Parties Hurriyat Conference (Geelani) Syed Ali Shah Geelani showing disappointment over considering most favorite nation (MFN) to India by Pakistan has said that this step is unacceptable if India maintains its occupation over Kashmir.
Pakistan's decision was conveyed by its commerce minister Makhdoom Faheem to his Indian counterpart Anand Sharma. Contrary to the claims made by Pakistan Information Minister Firdous Ashiq Awan that the federal Cabinet had unanimously approved a proposal to give India the MFN status, statements issued by the government the other day merely said the Cabinet had cleared a proposal for "normalisation of trade relations".
Firdous Awan confirmed in a press conference that federal Cabinet had unanimously approved a proposal to give India the 'Most Favoured Nation' status. Further, on October 13, Foreign Minister Hina Rabbani Khar also said in the National Assembly that her country had, in principle, decided to grant the MFN status to India. The minister said during question hour that the dialogue process with India had been initiated after a gap of two years. But in a surprising move next day the Foreign Office in Islamabad said the Cabinet had cleared a move for normalisation of bilateral trade relations that will "culminate" with MFN. Despite Pakistan's confusing statements the business stalwarts of both countries have whole heartedly appreciated the latest developments. ASSOCHAM while welcoming the Pakistan's decision to grant India the Most Favoured Nation status said the move will liberalise trade between the two south Asian countries. "We are sure the Indo-Pak trade will reach the six billion dollar level by 2014," said secretary general D.S. Rawat. "The MFN status will reduce transaction costs for industry leaders on both sides. It could also lead to negotiations to step up investments by Indian businessmen in Pakistan and the other way round. The business communities of both countries recently reached an understanding to form a joint trade and investment forum during a meeting between Pakistan commerce minister Makhdoom Amin Fahim and ASSOCHAM members.
On the Pakistan side business leaders expressed optimism that liberalization of trade would open vast opportunity for their businesses, particularly in the textile sector. Amin Hashwani, the president of the Pakistan-India CEOs Business Forum said "From Pakistan point of view we get a market which is eight to nine times bigger than us, so if you look at it theoretically, Pakistan should benefit more than India; in terms of exports provided, we get a level playing field. Pakistan has a great advantage in textiles and India has a huge domestic market, so if we can get access to that market, Pakistanis will be able to export at least a couple of billion dollars worth of exports into that market."
Keeping in view the sentiments of business community on both sides the Pakistan government needs to discard the apprehensions of the fundamentalists who don't want the country to stablise and prosper. The fact remains that the decision to grant India its due status would enable Pakistanis to export more goods to booming India at a time when Pakistan's own economy is in the doldrums. Moreover, it would provide employment to thousands of youth who are otherwise participating in terror activities. The follow on economic progress would ultimately lead to dismantling of terror infrastructure not only in Pakistan but in its neighbourhood as well.
Moreover, the improvement of relationship between the two countries is critical to peace, stability and development in the region.
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