Bloody MFN - India barrs Indians from investing in Pakistan

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The Zionist Puppet State of India

LAHORE – The Reserve Bank of India has barred the Indian nationals from investing in Pakistan's manufacturing sector, despite the repeated claims by New Delhi that no Pakistan-specific Non-Tariff Barriers (NTBs) have been imposed. The move is surprising given the fact that they have no restriction to invest in any other country of the world. Industry sources say the Pakistani traders have to go through lengthy and painful procedures to access the Indian market, as they are bound to fill at least 19 documents to enter India, but, on the other hand,the Indian businessmen fill only one form for the same purpose. The experts have strongly objected to the fast-track methodbeing adopted by Islamabad and fear that the policy would damage the local manufacturers, particularly the growing automotive engineering industry.

Pakistan Association of Automotive Parts and Accessories Manufacturers (Paapam) Chairman Syed Nabeel Hashmi, while talking to Pakistan's Daily, The Nation, said in the aftermath of MFN status to India, the government organizations required a lot of homework, which had also been elaborated in the roadmap of the Paapam. “Unless these proposals and necessary safeguards are not put in place, it is unfair to ask us to open our markets for imports from India,” he claimed, adding, “There is no strategy to ensure that the locally manufactured autoparts, cars, tractors or motorcycles can be exported to India.” Hashmi called for manufacturing and localisation of engine and transmission components in the country.

“We need to go into high-tech component localisation. Usually, the original equipment manufacturers (OEMs) avoid to make high-tech component due to the fear of loss, as they think that the demand is low, which is actually up to 250,000 units.” “Our OEMs only focus on cosmetics of the vehicle, ignoring high-tech components.” Responding to a question, he said 7,500 used vehicles were imported into Pakistan, while the figures for the last six months were 33,000. “Given the current situation, over 75,000 used vehicles will be imported by the end of the year of 2012,” he said, adding that after some years, there would be a need of importing spareparts for these vehicles, which would badly hurt the manufactures leading to unemployment and loss of billions in foreign exchange.

Hashmi said it was very strange that the Ministry of Commerce had proceeded to get approval of a list without the mandate of the stakeholders, adding that the Paapam recommendations on granting the MFN status to India presented to the commerce secretary were returned to see what was actually being presented to the ECCfor its approval. Moreover, according to the statistics of the Federal Board of Revenue (FBR) and the State Bank of Pakistan’s annual report, Pakistan’s exports to India in the year 2010-11 stood at $193m, while the imports from India stood at $860m. The value of total trade between the two countries in the said period was $1053m. Pakistan witnessed the highest trade value with India in the year 2006-07 when it had total trade of $3098m with 22 percent exports.

“The industry is deeply perturbed, and has already lodged protest against earlier decision to eliminate the Negative List in 10 months, as it did not allow the government to establish trade defence measures against the flooding of India’s goods in the Pakistan market. This new approach is not understandable as this leaves no time at all for establishing infrastructures for a level playing field for trade with India”, he added. “The industry fails to understand how the rationale for protecting local industry would change from one quarter to the next quarter.” “The government’s own two departments, including the TDAP and NTC, are least prepared to handle the marketing or damage control of Pakistan’s engineering industry. Over the last years our sector has been ignored and all our recommendations to enhance Pakistan’s image as an engineering destination have never being taken seriously”, he stated.

“We shall fully support opening up trade with India if our proposed roadmap is implemented in letter and spirit by the concerned government ministries”, he added.

(The Nation)

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