KARACHI, July 20: The post-Mumbai blast political scenario in South Asia is not too bright. The environment of cordial relationship between two South Asian neighbours -- India and Pakistan -- has soured after the series of train blasts on July 11 that claimed lives of ordinary commuters. The interaction between economic actors on the two sides of the border has not cooled off. Some joint events planned in the coming weeks may have to be delayed but none has so far been cancelled.
This was stated by Karachi Chamber of Commerce and Industry President Haroon Faruki while talking to Dawn here on Thursday.
For the first time Indian exhibitors have shown interest in the My Karachi Exhibition (to be held on July 29-31) for selling their products but it is not clear if they would actually be able to participate in the exhibition. The KCCI has been organising this mega event for the last two years. Besides, members of the Confederation of Indian Industry (CII), on KCCI invitation, have also shown interest in visiting the exhibition but their final plans have also not been conveyed to the organisers to date.
“There is a possibility that some Indian trade delegations will visit the exhibition but it is unlikely that they will display their products,” Mr Faruki pointed out.
He said the KCCI had sought special permission from the prime minister and the commerce ministry for an Indian-based organisation, Cutting Edge, which after interaction with Indian traders and industries, had planned to put on sale products like gem and jewellery, steel items, kitchen utensils, handicrafts, electrical items and some consumer goods that did not fall on the positive list, prepared by two countries, to be imported in Pakistan.The main aim behind seeking this permission was to get closer interaction and develop trade relations with the Indian counterparts. “This was the first time that some Indian companies were planning to visit the My Karachi Exhibition this year,” he said, adding that in the previous two exhibitions (2004 and 2005) no Indian exhibitors had participated.
So far there had been no progress and it was not clear yet whether the government would grant permission to the Indian exhibitor or the KCCI proposal was still under consideration, Mr Faruki said.
The KCCI had also invited the CII to visit the exhibition. He said that so far there had been no progress on this front.
Prior to Mumbai tragedy, the Indians had been giving positive signals towards the promotion of bilateral cooperation and there was an understanding between both the sides in fostering trade relations. There was also heavy exchange of trade and political delegations between the two countries, he said, adding that India is now backing from its earlier stance.
“Mumbai train bloodbath has definitely made an impact in the relations between the two countries. I still favour that trade between the two countries should boost on a level-playing field which means that one country should not benefit in opening of liberal trade between the two neighbours,” he added.
Irrespective of political relations, as per country’s foreign policy, he said, there was no harm in increasing bilateral trade, especially in case of procuring cheaper raw material and other items from India, he said.
Mr Faruki said the arrival of Indian goods from different routes and through smuggling in Pakistan was 10 times higher than the legal trade figures between the two countries.
Pakistan Tea Association (PTA) Chairman Muhammad Altaf told Dawn that a high-powered Indian tea delegation, which was due to arrive on July 15, was now expected to visit in the first week of August.
He said he had received intimation from the Indian Tea Association chairman that a 15-member delegation comprising chairmen of the India Tea Board and the Indian Tea Exporters Forum, leading packers and producers would be visiting next month. However, the PTA chief did not elaborate on the reason of extending the date of Indian delegation’s visit.
In its one-week tour, the Indian delegation would visit Karachi, Lahore, Rawalpindi and Peshawar. The visit of the Indian delegation is a part of mutual understanding between tea associations of the two countries in promoting frequent exchange of delegations to each other countries. Some 14 members of the PTA had visited India on April 15-23 this year.
Pakistan’s tea imports from India in 2005-06 had almost doubled, surging to 9,538 tons from 5,000 tons in 2004-05 owing to frequent interaction and visit of delegations.
“Tea imports from India may surge to 15,000 tons in 2006-07, as there have been some problems like low production of tea in some African countries and Bangladesh and importers may have to bring more tea from India,” Mr Altaf added.
