KARACHI, Oct 13: Naeem Anwar Qureshi, Minister of Trade, High Commission of Pakistan in India, on Saturday advised the business community to do proper homework, if they want to face the knowledge-based Indian trade and industry.

This was stated by Mr Qureshi during an interactive session with members of Federation of Pakistan Chambers of Commerce and Industry (FPCCI) on “emerging trends in India-Pakistan trade; challenges and opportunities” held at the Federation House.

He explained that up to last budget, Indian government was giving subsidies to the tune of Rs170,000 crore and this could not even be deducted by the WTO which declared Indian economy as complex and loaded with distortions.

Mr Qureshi further stated that around 411 industries in India are protected up to 150 per cent and this indicates that even manufacturing sector is full of distortions.

Nevertheless, he encouraged the business leaders not to get disappointed because there are WTO safeguards against such distortions.

He further explained that to protect the domestic industry, duties could always be enhanced in case of injury to the industry.

Above all, he said under WTO safeguards anti-dumping duty and countervailing duties could always be imposed once the injury was proven to the domestic industry.It is always easy to detect dumping, if any, from the Indian side because similar imports from other countries could expose this easily and the industry could seek assistance of the Tariff Commission of Pakistan for review of duties, he said.

Drawing the attention of the FPCCI members towards the fact that their counterpart, the Federation of Indian Chamber of Commerce and Industry (FICCI), was well-equipped and was being run by highly professionals and qualified people, Naeem Anwar Qureshi suggested that Pakistani trade and industry should also prepare itself to face the Indian trade and industry.

He disclosed that FICCI is being run by 300 to 400 highly skilled workers and at the top, there are around 75 PhDs who are involved in research work to protect the interests of trade and industry from global challenges.

Responding to a demand from FPCCI members that Kokhrapar route be also opened for trade, he said it was their task to suggest if it was in the national interest or not and sought a report from the FPCCI on the subject.

He, however, said that demand of opening up this route should only be made after making complete homework and research.

If it is a demand only to export a couple of items, it would go against Pakistan because across the border on the Indian side the infrastructure is fully developed and they also have a strong production base.

Regarding banks, he said though only two banks have so far applied for opening of branches in India and also completed documentation. More banks could apply before the deadline of Nov 30 so that they could start operations from April 1, 2013.

Mr Qureshi said from April 1, 2013 India would reduce all tariff lines from zero to five per cent and around 8,000 items could fall under this adjustment with only 100 items will be left outside this arrangement.

Earlier, FPCCI president Haji Fazal Qadir Sherani highlighted the problems being faced by trade and industry of the country, and other members also gave some suggestions.