NEW DELHI, Feb 26: A leading Pakistani conglomerate has sought investments from India's rags-to-riches Reliance Group, to set up a naphtha cracker facility in that country amid palpable signs
that the business community on both sides has taken charge as the spearhead of the peace process
, officials said on Thursday.
Pakistan's High Commissioner to India, Mr Aziz Ahmed Khan, was not alone in expressing the view on the evolving happy atmosphere in the region, when he addressed a meeting between Indian businessmen with representatives of the Karachi Chambers of Commerce and Industry in New Delhi on Wednesday.
Mr Khan did not say so in as many words, but his observation that the commerce secretaries' meeting of both countries scheduled in July as part of the composite dialogue would be crucial has led to fresh speculation in India that Pakistan would sooner rather than later give it the most favoured nation (MFN) status.
News reports confirmed that a proposal was being discussed for a $500 million petrochemical plant in Pakistan with the Reliance Group, a firm with close links with Washington and New Delhi.
Pakistan currently meets all its petrochemical requirements through imports. However, the growth of the domestic industry, coupled with an increase in demand for plastic, has prompted the country to look at setting up a local naphtha cracker plant, said The Asian Age, quoting a Pakistani businessman.
According to Mr M. Zubair Motiwala, former president of the Karachi Chamber of Commerce and Industry, Pakistan has revived its plans to set up a naphtha cracker plant and is seeking overseas investment in this capital-intensive industry, The Age said.
"As Reliance is a known name in the petrochemical business and has Asia's largest petrochemical plant under its fold, its investment is being sought to help Pakistani industry," Mr Motiwala said.
"During the delegation's visit to Mumbai, we will hold discussions with Reliance to explore the possibility of making investments in Pakistan," Mr Motiwala said, adding that the proposed naphtha cracker plant could either be set up through a joint venture or Reliance could hold 100 per cent equity.
The issue is likely to be taken up for discussion up when members of the Karachi delegation meet their counterparts in Mumbai on Friday.
Simultaneously, a Pakistani business delegation, twice the size of their counterparts from Karachi was due to arrive in New Delhi from Lahore from Amritsar on Thursday night, comprising about 70 members.
They will participate in the first ever Made in Pakistan industrial and trade exhibition, a two-week exhibition in New Delhi showcasing the best. Around 75 exhibitors are expected to participate in the expo to be held March 3-11 at the Talkatora stadium and garden.
Organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) and its Pakistani counterpart, with active help from the Indian foreign ministry, the show will "have around 75 entrepreneurs - both men and women - showcasing a range of wares in 115 stalls," an Indian official said.
Reports said that while large parts of India, particularly in the north, gear up to celebrate Holi on March 6, the organizers were planning to have a splash of colour at the exhibition venue for visitors from across the border keen to participate in the festivities.
A cultural evening with ghazal maestros Ghulam Ali and Jagjit Singh and a trade conference on March 2, ahead of the expo, have been finalized so far. Handicrafts like onyx giftware, carpets, dresses of phulkari and chikankari embroidery, a range of textiles, jewellery and handcrafted shoes and light engineering goods like fans and coolers will be on display at the expo.
"As products from Pakistan always hold certain charm for buyers here, we expect good over-the-counter sales and orders during the nine-day exhibition," an Indian official said.
India is expecting around 350 delegates to participate in the exhibition and conference. The success at the international trade fair held in New Delhi in November has encouraged many among the Pakistan delegates to participate on a bigger scale in the exhibition, officials said.
The revival of rail and air links earlier this year has helped, leading to considerable improvement in the official across-the-border trade that had been hovering at about $400m for many years.
The Pakistani industries represented at the Indian expo include automobile & engineering products; handicrafts; stones and articles made from them; consumer durables and non-durables, textiles, fabrics, garments, apparel; footwear; food items and dry fruits; furniture and home decor, a press release said.
