KARACHI: Trade and industry leaders gave mixed reaction over federal cabinet approval of negative list thereby restricting imports of 1,209 tariff lines from India before the normalisation of trade relations by the end of this year.
Most of the business leaders gave opinion based on their business interest.
Though the majority was apprehensive they were unanimous in their opinion that with the growing global crisis regional trade is gaining momentum.
Federation of Pakistan Chambers of Commerce and Industry Vice-President Khalid Tawab said though the industry welcomed the negative list but the deadline of December 2012 is too short to cope up with the situation.
He said that for any industry 10 months period is not sufficient to face open challenges and the government should have at least given three years for keeping negative list operative.
The FPCCI is in favour of normalisation of trade with India but would not allow local industry to suffer or close down because already the country is faced with acute unemployment problem, Tawab added.
All Pakistan Textile Mills Association Chairman Mohsin Aziz said that textile industry had no apprehensions about granting Most Favoured Nation (MFN) status to India but would like to be assured of level playing field.
“The negative list does not make much difference but what matters is that India should be asked to remove all sorts of non-tariff barriers (NTBs) hindering free flow of goods from Pakistan to India,” Mohsin asserted.
In Pakistan there was no duty on import or export of cotton yarn but in India there is 11 per cent duty on import of yarn.
“Without sorting out such irritants level playing field could not be ensured and Pakistani exporters will be at disadvantageous and will ultimately cause injury to domestic industry,” Mohsin warned.
Pakistan Apparel Forum Chairman Jawed Bilwani said that the negative list for a period of 10 months was of little consequence, but India should be asked to remove all sorts of NTBs to ensure level-playing field to Pakistani exporters.
"Under given circumstances when the local industry is confronted with power, gas shortages and high input costs, the unbridled import from India will cause large-scale closures of industrial units," he feared.
Bilwani was also apprehensive about the performance of National Tariff Commission (NTC) and said that Indian National Tariff Commission is run by a strong team of 50 bureaucrats and experts.
However, KCCI President Mian Abrar Ahmed was of the view that trade relations with India should have been normalised a decade ago.
He said that growing energy crisis all over the world was encouraging regional blocs to save on high freight cost. Citing an example, the KCCI chief said that the EU has 45 per cent of trade amongst its member states and similarly countries of North American Free Trade Association have it at 60 per cent.
If we can survive on having a free trade agreement with China then as to why we should be afraid of India, Abrar said, "I strongly feel it is a win-win situation and would like to see that the two port cities Mumbai and Karachi generating revenue to the level of 43 percent and 63 per cent for their countries respectively."