Pakistan has diverted its global trade worth $4.132 billion towards India following inclusion of 438 new importable items in the positive list during the past 10 months, officials told Dawn on Monday.

The expansion in the tradable list came in the backdrop of the composite dialogue launched in 2004, the forum which India successfully used for the benefits of their businessmen, while no progress has been made on the thorny issues including Kashmir, water barrages etc.

Commerce and Defence Minister Ahmad Mukhtar said Pakistan was in the process of “gradually liberalising” trade with India. “Composite dialogue process, especially on economic and commercial cooperation, has been instrumental in addressing the bilateral issues,” he added.

Official figures available with Dawn showed that Pakistan’s tradable list with India had 591 items in 1997, but it has been enhanced to 1,938 items in 2008. The government added 302 items to the list in October 2007 and 136 items in July 2008.

This expansion has widened Pakistan’s trade deficit with India to $893 million in 2006-07 from $73.736 million in 1999-2000. With the substantial expansion in the tradable list, the deficit is likely to reach $1.5 billion in 2007-08, when the final figures are finalised. The figures for July-March 2007-08 showed Pakistan’s trade deficit with India stood at $1.095 billion. Pakistan exported $200 million worth commodities to India in the July-March period of 2007-08, while the value of imported goods reached $1,295 million during the period under review.

Pakistan’s exports to India are stagnated between $200 million to $400 million despite the fact that New Delhi has granted MFN status to Islamabad.

A diplomatic source said, “India is satisfied with the constant expansion in the tradable items list. Whatever they want they get from Islamabad.”

Indian side never stressed for the MFN status as they were aware of the fact that the expansion in the positive list would serve their interest.

“MFN status has become just a political issue, which will lose its importance with the passage of time as Pakistan would keep on expanding the positive list to meet their demand,” he said.

Indians did not challenge the issue at WTO because they knew that they would lose the case.

Meanwhile, in a significant shift of policy, Pakistan also unilaterally announced measures in the trade policy to encourage Indian investment in manufacturing of CNG buses.

The government had already withdrawn the 15 per cent duty on the import of CNG buses in the budget 2008-09.

An official in the Board of Investment on condition of anonymity told Dawn that there was no law, which could bar Indian investment in Pakistan.

Pakistan has a liberal investment policy, but the official said generally both countries discouraged bilateral investments. It is not just for CNG buses the Pakistan government is also signalling its readiness to embrace Indian investment in other sectors.

The government has invited at least three Indian companies -- Tata, Reliance and Essar -- to a meeting of potential investors in the power sector to discuss the development of the Thar Coal Power Project. The meeting is due to be held in late July or early August.

Pakistan’s efforts at liberalisation of trade with India appear to be in line with the sentiments voiced by PPP co-chairman Asif Ali Zardari that the new government wanted to improve economic relations and would not allow the differences on Kashmir to come in its way.

http://www.dawn.com/2008/07/22/ebr5.htm

Is this good ? in case that Pakistan will get cheap product and save money...........

The government has invited at least three Indian companies -- Tata, Reliance and Essar -- to a meeting of potential investors in the power sector to discuss the development of the Thar Coal Power Project. The meeting is due to be held in late July or early August.

For coal exploitation .. we need even the help of Israeli's .. cause our own companies are just sleeping .. while 3 years back there was that lady writing all crap about Fauji foundation .. no wonder even they are not taking up too many big name projects anymore in Pakistan !

But for other items .. we have to be on guard or else our local producers will get squished by the huge Indian entities !

Garments industry hails govt Indian import decision

The Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has warmly welcomed the Pakistan government’s decision to start import of prescribed non-traditional items from India.
Talking to the newsmen at his Sialkot office here Saturday, the former PRGMEA Chairman Ejaz A. Khokhar said that the Pakistan could capture the huge Indian markets of garments if the Pakistan might discuss the important issue of reducing the high import duty on Pakistan garments in India under the Free Trade Agreement (FTA). He said that if this import duty on Pakistan garments is reduced by India then Pakistan would be able to capture the huge Indian market of garments by exporting the best quality garments, denim, Shalwar Qameez and ladies wears to India.
He urged the Pakistan government to ensure the imports of only raw materials from India instead of importing the finished products from India. He said that if Pakistan imported the finished products from India then the manufacturing sector of Pakistan would be affected badly.
He said that the “Both Sides” should also abolish all the Tariff & Non Tariff Trade Barriers between Pakistan and India.
Former PRGMEA chief said that the Pakistan government should also allow importing the motorcycles and CNG cars from India, besides, importing the CNG buses from India. He said that the imports of motorcycles and CNG cars would also end the high margins of profits of CNG cars in Pakistan, besides, reducing the prices of high prices of CNG cars in Pakistan. That step would also help in the provision of CNG cars of affordable prices in Pakistan.
The Union of Small and Medium Enterprises (UNISAME) has welcomed the Trade Policy, saying it is an effort to encourage the manufacturing units by facilitating import of machinery and raw materials. The Union welcomed the outlook to purchase from India as freight charges would be reduced due to proximity.

The Nation:

What bullshit.. for short term gain they are sacrificing the ability of our own manufacturing and industrial capacity to grow.. the only things that should be allowed to be imported from India should be raw materials, no exceptions.. While I agree with bringing in Indian investment, I disagree with bringing them in for projects like Thar Coal, which are vital for the country and cannot and should not depend on Indian companies..

This has to be a sick joke right? Bringing in the Indians to invest in our strategic energy projects?

I pray to Allah we are rid of this government as soon as possible. A people’s overthrow would be great.

And we're banning the import of life saving drugs, that's the priority we came up with in the last 100 days?

Don’t worry bro the anger among the people is reaching boiling point…..

why are you so negative about this?

do you not think pakistan can compete with india? where is your belief in pakistani business to compete with indian businesses.

have some faith. pakistan will also prosper with a deal, because i believe pakistan businesses are just as good as any indian rivals and will come out on top.

Oooo Bheessss... Guys we should seriously not allow these companies 'coz look a their domain:

a) Tata: Major auto giant
b) Reliance: Petorchemical giant
c) Essar: Steel and petrochemical

Lets not forget all these companies are purely owned by Bhindis themselves. All these companies have presence in other sectors. I strongly disapprove the entry of these companies because once they come in other Banyas will definitely come to our Paak soil and ruin whatsoever industries left. I mean beghairtee ki bhi had hoti hai. Please don't let these companies enter Pakistan.

So now this bunch of traitors like Musharaf, Zardari, NS are selling out the people--no surprise!!

Hang all 3 and there familys 2 generations down, to make sure there dirty blood would leave pakistani politics for good

Lanat hai yaar.This government is trying to make Pakistan completely dependent on bhindia.I pray to God that we get rid of them soon.



I'll leave Mushy's family if I were you, provided that they don't ever try to come into politics. The other two families deserve no leniency.

India Bans Port Investments From China, Pakistan, Times Reports

By Vipin V. Nair

July 22 (Bloomberg) -- India banned companies from Dubai, Hong Kong, China and Pakistan from investing in port projects in the country, the Economic Times reported, without saying where it got the information.

Foreign direct investments from these countries were earlier considered on a case-to-case basis, the newspaper said. The government is now introducing a ``blanket ban'' at the bidding stage itself, the newspaper said.

The companies will no longer be permitted to invest in the more than 250 ports being developed in India because of security threats to the nation's naval bases, the report said. The move will affect the investment plans of companies like DP World Ltd. and Hutchison Whampoa Ltd., it said.

India's ports and shipping ministry will reopen bids for at least 10 port projects because of the decision, the Economic Times said. The ban is applicable for cargo handling, ground handling and other infrastructure development at the ports, the newspaper said.

To contact the reporter on this story: Vipin V. Nair in Mumbai at Vnair12@bloomberg.net.

lol the way we r going, i say forget Kashmir, I feel Pakistan's own existence is at stake. Pakistan has been blessed with everything except for honest and capable leaders. Inna lillahe wa inna ilaihe raajeoon.

We are doomed.

The people elect these leaders. So what do you expect.

Majority of our population itself wants to elect goons back to their kursi.

So they are banning investments in their own strategic port ventures, whilst we invite these wolves in through our energy projects?

There should be a national outcry over this.

It's a tit-for-tat move, reciprocal by India for Pakistan banning Indian Pharmaceuticals.
The article Babur posted in the Drug Ban thread, read it, Novartis is pretty pissed at not getting share of the Indian market inspite of them still holding the patent.

The govt. didn't ban pharmaceutical products from India because of any principle or policy (as nothing else was banned).
I feel that our leaders were bribed into making that move, just like once Indus Toyota bribed Zardari to ban import of reconditioned cars (remember?).

Possibly Novartis was more instrumental in the drug ban than our Health Department.
However, the ban on port investments, doesn't really affect us, I mean we even gave the contract out to China for Gawadar, and neither did we build Port Qasim.

Your heart felt emotions and the call for national outcry amuses me bro. I remember there was an outcry by our stupid population against the government for banning indian channels and bollywood movies on cable tv in Pakistan. Don't expect any outcry over this my friend. Our people are mostly buffoons.

Well bro there is always hope…I just don’t understand what it will take for the population to move. The greatest blame can be placed on the media, as we don’t have such issues highlighted. If people knew what was going on then maybe we could expect an outcry.

Media.... ??!! What media are you talking about? I was watching Capital talk on Geo and the headlines was "Indian PM wins confidence vote". Entire media is in control of Indians. All the programs, all the channels even the ads that we see are Indian inspired. What a shame for a population that says "hum zinda quam hain" . The current government has taken hypocracy to a new level. PM Gilani saahab gives a statement that foreign troops will not be allowed on Pakistan soil and very next day they issue that Indian imports are now cheaper. This means that we are surrendering to the bhangee nation and its policy without giving a fight. Someone correctly on another topic that, forget Kashmir we need are not sure whether we will exist as Pakistan.

what do you expect from this govt. ???????/

They came to ruin the country,, not develop it.

That is true my brother, there is always hope…

I will blame media also, they just want money....

i have this lecturer here at university who is from Indian Occupied Kashmir. i first met him 2 years ago at a seminar on Pakistan and when i asked him from where he was, he replied "I am Pakistani but i am not from Pakistan". i was confused, but later he explained that he was a Pakistani at heart, but he came from Indian Occupied Kashmir. i never met him after that until a few days ago and we started talking about politics. he told me how dissapointed he was with the Pakistani nation that on one hand the indians are killing and raping the Kahmiris, those very Kashmiris who even today call themselves Pakistanis, and on the other hand the same Pakistani nation is busy kissing the arse of india. i tried to explain to him that its the government which has given up the cause of Kashmir, the people of Pakistan are with the people of Kashmir. he told me that if i said the same thing to him a few years ago he would have believed me, but now he finds it hard to believe. the people of Pakistan are becoming indianized. i never felt more ashamed of myself and m nation.