Lahore, All Pakistan Textile Mills Association (APTMA) Chairman Mohsin Aziz has advised real caution while deciding on trade with India, adding that one-way traffic is unacceptable.
Bilateral trade between Pakistan and India should be based on level playing field, reciprocity and comparative advantages, the Daily Times quoted Aziz, as saying.
Aziz said efforts to bring the two economies closer is commendable, as it was high time that each benefits from the other’s potential.
According to Aziz, current exports from Pakistan to India are worth an estimated 300 million dollars, as against 1.9 billion dollars worth of exports from India.
The past five year data analysis suggests that exports from Pakistan to India have dropped, despite the fact India has extended Most Favoured Nation (MFN) status to Pakistan. Whereas, exports from India to Pakistan have almost doubled in the same period despite the fact Pakistan has yet to extend MFN status to India.
This phenomenon should be seriously considered before opening border to Indian products by the end of current calendar year, he asserted.
He said Pakistan industry since last five years has not been able to produce export surplus due to high interest rate, shortage of energy and market limitations, adding that banks in Pakistan were not providing liquidity to existing as well as new projects.
He also said there is a need for equalising duties on both sides of the border.