LAHORE, May 12: Sector specific confidence building measures (CBMs) and a solid strategy to solve long-standing issues are only way to the full realisation of trade potential between Pakistan and India.

This was the upshot of the speeches made at a seminar on the challenges and potential of trade between Pakistan and India organised by the Lahore Chamber of Commerce & Industry (LCCI) in collaboration with the World Bank on Friday.

LCCI president Mian Shafqat Ali and vice-president Aftab Ahmad Vohra, commerce & investment secretary Saeed Alvi, former LCCI senior vice-president Sohail Lashari, economist Akmal Hussain and Pak-India B2B Forum’s Yawar Ali spoke on the occasion.

While favouring trade between the two countries, the LCCI president said it should not be unbridled and should reasonably be balanced. He said India already maintained a number of non-tariff barriers at the global level, and would not hesitate to employ the same against Pakistan if the need arose.

Talking about the South Asia Free Trade Agreement (Safta), he said despite the fact that SAFTA had in its fold a number of opportunities, it at the same time threw quite a few challenges to the countries like Pakistan.

“Huge Indian market enables its companies to practice economy of scales, which brings down the cost of production.” He said that as India produced a wide range of raw materials, it had an edge over Pakistan.

Talking about the agriculture sector, he said that “India is extending subsidies to its agriculture as well as industries that we do not provide and India would not hesitate to employ dumping to destroy our industries and secure our markets. Already some of our industries are reeling under the chill wind of cheaper Chinese imports.”

The LCCI vice-president called for simplification of Indian Customs formalities, saying that they were cumbersome enough to test the patience of a saint. He said that in majority of cases Pakistani exporters found it difficult to export their products to India. He said that in case of all edible products, the clearance from the Indian Customs Department, and from their Ministry of Health representatives took ages. The edible products were perishable so by the time the clearance was granted the products on several occasions were left with lesser shelf life. “This makes our exports less competitive in the Indian market.” He said that this matter should be taken up with the Indian government. Former LCCI senior vice-president Sohail Lashari said that India was extending subsidies to its wheat, cotton, sugar cane, cycles and fans sectors. “These subsidies should be removed by the Indian government before open trade starts between the two countries.”

Dr Akmal Hussain called for urgent measures for the betterment of the poor living in the two countries by putting all the political issues aside. He said that economic well-being should always stay at the top. He also appreciated the LCCI efforts for highlighting the hurdles coming in the way of trade between Pakistan and India.

Syed Yawar Ali said that India was providing 30 to 50 per cent subsidy to its dairy sector. “Pakistan’s dairy sector has a lot of potential and could capture the Indian market, but the subsidies should be waived off first by the Indian government.”—Staff Reporter