India, Pakistan trade crosses $1 billion mark

[Nasir]

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India, Pakistan trade crosses $1 billion mark

NEW DELHI: Bilateral trade between Pakistan and India almost doubled to cross the one billion dollar mark this year, an industry body said on Sunday.

The 400 million dollar increase in the year ending March 2006 was attributed to the launch of a South Asian Free Trade Area Agreement (SAFTA) and the opening of rail and road links last year, the Associated Chambers of Commerce and Industry said in a statement. “The establishment of relations along with SAFTA has brought changes in customs tariffs and reduced trade-related barriers, leading to restoration of direct trade linkages and reducing the transaction costs,� said the statement quoted by the Press Trust of India news agency. Following the January 2004 Indo-Pak peace talks, Pakistan scrapped import duties on 13 commodities from India, including garlic, onions, potatoes, tomatoes and livestock, that were scarce in its local markets.

India last year imported onions from Pakistan to make up for a domestic shortfall. Bilateral trade, which stood at 161 million dollars almost five years ago, has the potential to reach 10 billion dollars by 2010, the industry body added. AFP

http://www.dailytimes.com.pk/default.asp?p...0-3-2006_pg7_10

[Nasir]

Mashallah both countries are now working together to help people from the both sides. This is really good! Its better to exchange goods than fire. :GUNS:

[Hammer]

Originally posted by Nasir@Mar 20 2006, 06:12 AM
Mashallah both countries are now working together to help people from the both sides. This is really good! Its better to exchange goods than fire. :GUNS:

Quoted post

Ditto.

[Samudra]

We could do well to export some of those tomatoes selling at 1 or 2 rupees a kilo here!

[Neo]

Originally posted by Nasir@Mar 20 2006, 01:42 AM
Mashallah both countries are now working together to help people from the both sides. This is really good! Its better to exchange goods than fire. :GUNS:

Quoted post

Nasir,

GoP is under severe pressure from Pakistani business community and intellectual think tank to realise a FTA with India, its the only logic and right thing to do as Pakistan would benefit more from it than India in the initial stage.
Once the SAFTA is created we would become the largest free trade zone in the world and will attract more FDI.
Indian market is huge, good for our exports and we'll access cheaper machinery and industrial goods from our neighbors instead of UK and USA or Japan.

FTA will result in regional stability and peace.
Mark my words.

[sigatoka]

Nasir,

Pakistan would benefit more from it than India in the initial stage.

Once the SAFTA is created we would become the largest free trade zone in the world and will attract more FDI.

mmm, Why do u say that Pakistan will benefit more in the initial stage?

Seconldy India a huge market of one billion people experiencing free trade within its borders is pathetic at attracting FDI. Why would a slightly larger market (combined Indian and ****) be any better?

Pakistan would do better with a free trade with China. Because the more different the structures of economies of nations, the more they benefit from trade. (Not convinced? well i couldnt be bothered explaining now.)

[Jay_]

Indian market is huge, good for our exports and we'll access cheaper machinery and industrial goods from our neighbors instead of UK and USA or Japan.

I'm not sure what value added goods can Pakistan export to India. Read again, the key is value added.
Consider this, Pakistan currently exports textiles (garments, bed linen, cotton cloth, and yarn), rice, leather goods, sports goods, carpets, rugs, chemicals.

[sigatoka]

I'm not sure what value added goods can Pakistan export to India. Read again, the key is value added.
Consider this, Pakistan currently exports textiles (garments, bed linen, cotton cloth, and yarn), rice, leather goods, sports goods, carpets, rugs, chemicals.

The structure of Indian and Pakistani economies are so similar that their wont be great benefits to trade. The greatest benefits from trade occur when their are large differences in price between local markets and the foreing market.

[Tirtha-Nepal]

good sign of better relationship

[fatman17]

the potential is way more than this 15 -20 billion. transit trade to CAR's and back etc.

[Capt.Popeye]

the potential is way more than this 15 -20 billion. transit trade to CAR's and back etc.

That is certainly so. But still into the future and unfortunately still "trapped in the fog of improbability".
But Direct Trade now is upwards of USD 2 billion if I'm not mistaken.

[Mech]

That is certainly so. But still into the future and unfortunately still "trapped in the fog of improbability".
But Direct Trade now is upwards of USD 2 billion if I'm not mistaken.

I think in addition to the TAPI, India is planning another pipeline from the Kazakhs. Saw it on Hindu today.

If it ever comes to fruition, pakistan's importance to India will grow.

[Stealth]

Allow Indian Motorcycles in Pakistan... seriously Pakistan's local motorcycle industry making ****.... not even ****.. more thn ****!

[Capt.Popeye]

I think in addition to the TAPI, India is planning another pipeline from the Kazakhs. Saw it on Hindu today.

If it ever comes to fruition, pakistan's importance to India will grow.

First thing first; let Pakistan come up-front on MFN. Then we can slowly think of aiming for the "Moon".

[Mech]

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First thing first; let Pakistan come up-front on MFN. Then we can slowly think of aiming for the "Moon".

Yes well, there's no harm in dreaming