105
LAHORE: Trade relations with India will not harm Pakistan’s economy, says former Pakistani High Commissioner to India Aziz Ahmed Khan.
To emphasise his argument, Khan said trade with another neighbour, China, had not brought any negative impact to our economy.
He was addressing a round-table talk on Pakistan and India relations jointly organised by the Pakistan Study Centre and Pakistan National Forum here on Wednesday.
Mr Khan said interference in the affairs of each other should be avoided by both India and Pakistan.
He said Indian business tycoon Rattan Tata had secretly visited Pakistan in 2005 and offered to invest $5billion but it could not be materialized.
He said Pakistan had been gradually increasing the number of items on positive list. “Trade can help ease tension between the two countries and help resolve other important issues,” he said.
Aziz Khan further said the peace process between the two nations which had started from Ufa was derailed because Pakistan wanted inclusion of Kashmiri leaders in the talks which was a normal practice earlier but India took a hard line. He said the relations got strained when Modi came to power.
He spoke about irritants between the two countries such as Kashmir, Siachen, Sir Creek and trade. In 1989 India was ready to withdraw its forces from Siachen but developments in the region harmed the process.
The former high commissioner said the Kashmir dispute had been a bone of contention since independence, however, during the Musharraf era some major developments were made and some initial steps such as start of a bus service resulted in enhancement of people to people contact. However, the Mumbai attacks in 2008 changed the whole scenario.
Punjab University Vice-Chancellor Prof Mujahid Kamran stressed the need to focus on education and research to deal effectively with the problems faced by Pakistan. Director of Pakistan Study Centre Prof Massarrat Abid presented an overview of the factors which led to Indian Prime Minister Narendra Modi’s visit to Lahore. She described the visit as a positive move towards construction of better relations between India and Pakistan.
The round table conference agreed that only dialogue could deliver peace in the region and people to people contact must be enhanced.
“Pakistan is willing to work for peace in the region but not at the cost of Indian hegemony,” it agreed.
The faculty members, researchers and PhD scholars of the Centre and different departments of the Punjab University participated in it.
Published in Dawn, December 31st, 2015
Read more
On DawnNews
Comments (105) Closed
Dec 31, 2015 08:40am
Economic relations between India and Pakistan can change the political scene. We need to restore back traditional trade of pre 1947 and create new ventures suitable to South Asia.
Recommend
0
Dec 31, 2015 09:13am
Go round and round and back to zero
Recommend
0
Dec 31, 2015 09:31am
Aziz Ahmed Khan .... you are so out of touch? When I was growing up I used to see and use so many Made in Pakistan products from electric switches to everyday sleepers and sandals. Now everything is Made in China. Needless to say thousands got unemployed due to dumping of Chinese products.
Recommend
0
Dec 31, 2015 09:35am
OF COURSE TRADE WITH INDIA WILL AFFECT THE PAKISTAN ECONOMY! Trade with India will have a positive and negative social, political and economic impact on Pakistan! The important question is "Is the net affect positive or negative for both Pakistan and for India?". A net positive affect will materialize only if the terms of trade are mutually beneficial! It should be discussed and given a serious consideration. It's important for both countries to resolve issues put the past in the past and look to the future!
Recommend
0
Dec 31, 2015 09:36am
$ 5 billion in 2005 is at least $ 10-15 billion today. That would be almost half of CPEC and if it would have materialized it would have transformed Pakistans economy to a fair extent. If Tata would have set up in Pakistan, Mahindra would not be far behind- afterall M&Ms founding members are Mahindra and Muhammad- the latter became first Finance minister of Independent Pakistan.
IT companies itself would have created 5 lakh jobs. The ripple effect would have been immense and that 5 billion in 2015 would have been 50 billion.
Why does Pakistan hold 200 million Pakistanis hostage to a dispute concerning just under 10 million people. If 200 million are developed- the rest too can be benefitted.
Similarly India had offered Bangladesh a blanket cheque of Rs 2000 crore every year to Bangladesh for allowing Indian trucks transit to other Indian states saving fuel and time. B desh rejected the offer. Egos destroy public good. Lets all get over it.
Recommend
0
Dec 31, 2015 09:39am
We are more then $8 billion trade negative with China and it has adversely effected our manufacturing base, making them very hard to survive in presence of cheaper chinese goods.
same will happen in case of Trade with India.
Recommend
0
Dec 31, 2015 09:57am
Waiting for IPEC. Prosperity to ppl of Pakistan .
Recommend
0
Dec 31, 2015 10:00am
If trade between pakistan and india is liberalised than 80% of Pakistan's trade will be with India while this will be about 5% for India. Needless to say this will give India huge leverage over Pakistan.
Recommend
0
Dec 31, 2015 10:47am
A country has strict visa regulation for neighbors so how you feel its OK to start a free trade agreement or free trade between two neighbors its only words.
Recommend
0
Dec 31, 2015 10:55am
@Zulfiqar Of course, Pakistan should do what it feels is in its own interest, but this is inaccurate. China has a rigged system where its currency is kept artificially low and lots of tariffs, some hidden, prevent industrial goods from moving-in. This is very similar to what Japan used to do before but can be done more ruthlessly in China due to the political system there. To my knowledge, no other country in the world runs such a mechanism at such giant scale. You can compare India-Africa economic relations compared to China-Africa relations. China has been been in the extractive business there (getting raw materials out) and ships in finished goods, whereas India tends to do a lot of joint-ventures. This is because the Indian private sector is quite unregulated by comparison and does things for the singular benefit of the company and not for any national benefit. Many countries even in our neighbourhood, such as Burma, have switched focus to India due to this.
Recommend
0
Dec 31, 2015 10:59am
@Zulfiqar
If Pakistan trades with India a huge market will open up for many Pakistani goods which will have price advantage due to proximity to India as against China. China is exporting to India ,and I am sure good share will go to Pakistan for consumer goods,sports goods,clothing ,fashion goods.Books will be one item of interest.Please look at what Pakistan will gain. India will also have advantage. It is a win win situation.
Recommend
0
Dec 31, 2015 11:00am
we have to push a move to promote self made product.Unemployment rate in Pakistan has bombed and nothing exits except the circulation of social evils prevailing across region.
Recommend
0
Dec 31, 2015 11:02am
think again....
Recommend
0
Dec 31, 2015 11:26am
Well said Khan sb !!!!
Dear friends from Pakistan . We are living in the world of globalization . This is the storm soon going to envelop the entire globe. Better be prepared to compete rather than keeping your self in silo's .
Ultimately for examples quoted below for switches and local manufacturing. Who has suffered the most only the business houses who worked in monopolized environment. Who has benefited the most .. common people who has items in less prices.
Now example from India in my school days choice for scooter/ Bike for middle class family was strictly for Bajaj auto .. now we have choice from Honda , KTM , Harley getting manufactured in India... Its common people we who benefited the most.
Recommend
0
Dec 31, 2015 11:31am
I know it won't happen in near future but I would love to see Pakistan granting India MFN status for trade. About time end consumer of Pakistan gets his hands to top notch Indian bikes and cars. We have been exploited enough by a monopoly of BIG 3 car manufacturing companies. Indian market will open a lot of possibilities for Pakistani businesses.
Recommend
0
Dec 31, 2015 11:33am
Indian hegemony?
Recommend
0
Dec 31, 2015 11:34am
As long as India see Kashmir as an irritant and not what it is: a very very serious major dispute and conflict with a nuclear overhang, peace and trade will remain dream.
Terrorism as claimed by India is a product of Kashmir. Solve Kashmir = solve terrorism. There were no such claim by India in the 50s, 60s, 70s and 80s but still Indians refused to solve Kashmir. Terrorism is used as a delay tactics as if given enough time Kashmir will go away. As if the Muslims of Kashmir will give up their dreams. No, it will only get worse.
Recommend
0
Dec 31, 2015 11:38am
@Zulfiqar The leverage need not be one way. For many Indian companies the costs of setting up facilities in Pakistan will be more economical due to currency exchange rate differences. Companies like TCS and Infosys can set up software development facilities that could generate jobs for Pakistanis. Companies like Tata and Mahindra can set up manufacturing facilities that can again bring more jobs to Pakistan. Need of the hour is to create a peaceful atmosphere so that both countries can benefit.
Recommend
0
Dec 31, 2015 11:39am
@Hamid shafiq Visa regulations will automatically ease out once relations improve. I don't think that's a major hindrance.
Recommend
0
Dec 31, 2015 11:54am
Saying that trade with India will not affect Pakistan economy is not enough. It is also not correct that trade with China had no affect. China and India are far advance in technology and industry. Due to flooding of Chines goods many industries have been closed. Only those industries which have benefit of availability of cheap raw materials or have transport cost major component have survived. We will be reduced to exporters of raw materials or farm produce. This will not be good from employment point of view. India and China should be asked to invest in Pakistan industry specially engineering industry. At the same time Pakistan government should offer generous incentives to engineering industry backed by technical schools.
Recommend
0
Dec 31, 2015 12:56pm
With the opening of CPEC the Chinese will become even more cheap and will capture the entire Pakistani Market. If India comes in then they would compete with each other as a result of which the Pakistani consumers will be benefitted.
Recommend
0
Dec 31, 2015 12:58pm
@Sudhir Neyalasinger Sir better to see reality and facts. currently the visa process of India is just like you apply visa to US. In US visa you can go any where in the country but both in Pakistan and India you mention the cities which you shall visit and if you found other than city you mention then you arrest on spot and send to jail. I hope it requires a long way to normalize better to discuss major issues because border disputes major important both countries which require courage to solve.
Recommend
0
Dec 31, 2015 01:02pm
Who make such kind of guys Ambassadors, as they cant even understands basics ??
Recommend
0
Dec 31, 2015 01:05pm
It will be impossible to contain the flooding of Indian goods within the Pakistani market, destroying the local industry.
This trade shall have to be to an extent that the local industry and the production, industrial and natural, is well protected against any damage.
Its in national interest of Pakistan to make sure that the trade shall not destroy its own economy and output.
Even though China is a trade partner but they have never flooded the Pakistani market to create any damage. India is different and based upon the history, cannot be trusted as such.
Recommend
0
Dec 31, 2015 01:11pm
We should aim for a common market five year from now. Ground work for the same should start forthwith. The subcontinent will be one of the biggest market in the world. We will not only be providing for our consumers but also to the consumers around the world. Think big think right.
Recommend
0
Dec 31, 2015 01:17pm
we live in a globalized world,free and open market should be in everyone intrest.
as far as dumping of goods are concerned they can be taken care by anti-dumping measures,which is a global norm.
we should start duing business together as it will be mutually beneficial..
Recommend
0
Dec 31, 2015 01:24pm
@Hamid shafiq The problem is mutual and there is a issue of trust deficit. the best way to start to find a fix is economical. THats what drives todays world trust me. India has given you guys a MFN status 15 years ago. Its time you show some commitment from your end.
Recommend
0
Dec 31, 2015 01:27pm
Better to trade with China and even Africa. The more you trade with India, the more leverage they have over you. And clearly, being the larger country, their influence will be greater.
Recommend
0
Dec 31, 2015 01:28pm
@Lalsinh
No one says pakistan will have no gain at all, but india will gain much more, and this have more influence over us.
Recommend
0
Dec 31, 2015 01:37pm
Trade is never zero sum game.
Both countries will benefit from trade. Manufacturing from everywhere in the world has moved to China because it's the cheapest. Protecting industries that are not competitive will help few industrialists but the entire country is paying extra for those goods. Start small if there are concerns and see the benefits
Recommend
0
Dec 31, 2015 01:41pm
A simple difference between India and China manufacturing companies cannot be ignored. In China most companies are Govt. owned. Therefore, surplus production can be dumped elsewhere at less than the cost price e.g. steel. Many countries inc. the US, Europe, India, etc. are taking steps against the Chinese dumping. No private company can afford to sell at a loss and will stop production. If Pak opens up then some Pak owned Dubai based companies that specialise in Indo-Pak trade will suffer but Pak citizens and Govt. are likely to benefit. Moreover, Indo-Pak trade can be done in local currencies, viz. some Indo-Iranian trade & Indo-Russian trade. Further, it is NOT True that ALL Indian goods are cheaper than Pak goods.
Recommend
0
Dec 31, 2015 01:43pm
There are certain items that can only come from India. Therefore, due to lack of trade agreements, they come through Dubai at huge extra cost and obviously adversely effect Pakistan's economy
Recommend
0
Dec 31, 2015 01:55pm
It is difficult to predict which country will be benefited. According to the strategy any country can get maximum benefit. The huge Indian market can be tapped in the favour of Pakistan, if competitive products are available in market.
Recommend
0
Dec 31, 2015 02:01pm
‘Trade with India not to affect Pakistan economy’... India and Bangla Desh are already selling their product much cheaper and better quality than Pakistan... blame it on power generation and production cost... I think the rise of China is inevitable, because China has moved from a low-cost producer, at low levels of technology, to higher levels of technology, and because it's very competitive, even in some high-tech products they offer at very competitive rates - much lower than their competitors.
Recommend
0
Dec 31, 2015 02:16pm
@Salman from Lahore -- China is not investing in your country they are exporting goods to your country, where india's pvt sector is willing to invest in pakistan. which after long while china is thinking now to combat future presence of india. pls understood china is only one who only have export relation with a pakistan for a long time because of it's upperhand. In case of Afganistan you have armed men export\import .., vice verse.
Recommend
0
Dec 31, 2015 02:34pm
We have seen many episodes of optimism however relations can never improve because of extremists elements on both sides.
Recommend
0
Dec 31, 2015 02:58pm
Pakistan could be good market for Indian Investment as culturally we are same.I wish that a day will come when we see Tata's in Pakistan and Vice Versa.Buth countries will benefit and people will become more friendly.
Recommend
0
Dec 31, 2015 02:58pm
Its never going to happen so just stop talking about it. There are too many people opposing it on both sides.
Recommend
0
Dec 31, 2015 02:58pm
What I see here is the Government of Pakistan (GoP) need to survey the requirements of Pakistani citizens. On the basis of the needs the imports have to be restricted so that the economy will boost without hampering the internal productions. Similarly the country needs to improve in the exports items and it needs to make strategy to exports as more items as possible.
If imports of goods and services will exceed, it will make the nation dependent and if there will be any minor tussle in between the government, it will directly affect to people living. For instance, Nepal was depending with India for a long time for its basic needs. Nepali citizens and the GoN too didn't feel the need to find the alternative source to fill up its basic requirements in the past. Now, the tussle among three forces Madhesi in the border gate, GoI and GoN are forcing people pass through miserable conditions.
A balance imports and exports will surely enhance the economy of the nation.
Recommend
0
Dec 31, 2015 03:13pm
First, why all of a sudden, India has become a hot subject. See if it it were not to derail and demoralize China & CPEC. China is a Trusted friend & India is Tested Foe.
CPEC has just started and is promising both economically & militarily. Indian activism is a ruse to create doubts about China & CPEC.
Afghanistan is being used to lure & pressure Pakistan. WISEMEN , it is India-US-Afghan game to put off China from Pakistan.
They say, One in Hand is better than two in the bush .
Recommend
0
Dec 31, 2015 03:14pm
Better idea is to ask Chinese or indian companies to invest in Pakistan
Recommend
0
Dec 31, 2015 03:18pm
This is an extremely dangerous suggestion. Why would you open up trade with India when you have many disputed issues including Kashmir? China is Pakistan's strategic ally,whereas India is an enemy country. Trade with China should be promoted but not with India.
Recommend
0
Dec 31, 2015 03:26pm
India pakistan trade would pretty much have no effect on each others economy. Like it or not, Chinese products are gonna give hard time for both Indian and Pakistani manufacturers. Pakistan is gonna get hit hard due to high production costs, lack of electricity and raw materials and size of the market. I don't understand how will a Pakistani company not get benefit of economies of scale if they can access Indian markets. Even if you consider trade via lahore, Pakistani companies will have a direct market of more than 400 million people in just the northern states of India.
Recommend
0
Dec 31, 2015 03:44pm
India had protected it's own industry for decade, and not allowed imports. Now that their economic has grown and can stand on its own feet.
While we don't have strong industria and can't compleat.
Saying that if we allow countries to invest in Pakistan then we need to do joint ventures.
Otherwise we will have nothing.
Recommend
0
Dec 31, 2015 03:57pm
Naysayers get over your prejudices. Don't you want to give a tension-free future to your children? Opening trade will make this future possible. India and China are rivals yet India has allowed Chinese major companies to establish manufacturing facilities in Indian soil. Do you think both nations don't estimate their mutual benefits? Pakistan should think far in the future of setting up factories in India and vice versa. Mutual security will be best assured without sophisticated weapons pitted against each other. I sincerely hope that time has come to take the next big step. And yes, Kashmir will be solved also in parallel. Wishing all Pakistanis Happy New Year!
Recommend
0
Dec 31, 2015 04:21pm
@abbas... Dear Abbas bhai...... what is the exact problem we have to find it out.. how manufacturing cost so low in china...
Come in competition, lets see the guts of Our self in business... :)
Recommend
0
Dec 31, 2015 04:23pm
Pakistan needs to improve the standards of the products and services Pakistanis are offered- be they imported or locally manufactured.
Indian imports would mean even poorer standards than the present Chinese goods. No warranty, no refund, sub-standard products, no after-sales servies and in many cases questionable trading practices.
Many in the WEST would testify to it.
Recommend
0
Dec 31, 2015 04:26pm
Why would Pakistan even think about trading without getting Kashmiris their rights.
Recommend
0
Dec 31, 2015 04:28pm
How will Pakistan measure the sincerity of India...on one hand India is trying to raise
insurgents in Balochistan against the Nation of Pakistan...on the other side it is pursuing Afghanistan to enter Pakistan every other day and not hesitate even in killing
innocent school children...In Iran India is persuading them to be anti Pakistan with Shia Sunni issues...and they are calling Pakistan China relations illegal CPEC...somebody should address these issues and tell a common Pakistani who will this India Pakistan friendship advance..???
Recommend
0
Dec 31, 2015 04:30pm
Wish.that.investments.had.materialised.
Recommend
0
Dec 31, 2015 04:37pm
@A Pakistani What the hell are you saying ? I can clearly see that you have not even heard of any Indian products. Or products, though they are a bit expensive but they stand on quality. Or compelled like TATA, Micromax, Flipkart are doing a great business in the West (including the United States). Most of the steel products (including the NYC manhole cover) are all 'MADE IN INDIA'.
Recommend
0
Dec 31, 2015 04:38pm
@Alal The Chinese will kill your economy with their cheap products. They are already damaging India's economy by dumping their cheap mass produced products there, so you can imagine the impact they will have on your economy.
Recommend
0
Dec 31, 2015 04:46pm
@A Pakistani Chinese products are worse in quality as India imports huge quantities of them and has first hand experience
Recommend
0
Dec 31, 2015 05:05pm
@Vishal : Ratan Tata is on record saying that he will never invest neither export any products to Pakistan till the Mumbai carnage master minds are brought to right justice.
Recommend
0
Dec 31, 2015 05:23pm
@A Pakistani Absolutely incorrect. In terms of quality, Indian products are way better than Chinese products, although Chinese products are usually cheaper. A lot of Chinese products are imported into India, which although cheaper, are inferior in quality to Indian products. I remember a few years ago, when Ram Vilas Paswan was Railway Minister in India, the Railways imported a large batch of steel rails from China instead of buying them from SAIL (Steel Authority of India), just to antagonize the Chairman of SAIL. The entire lot imported from China had to be discarded and scrapped, because its quality was much inferior to Indian rails and did not meet the stringent specifications of Indian railways.
Recommend
0
Dec 31, 2015 05:31pm
But one way trade will affect.
Recommend
0
Dec 31, 2015 05:51pm
Whether pak govt opens trade with india or not the indian goods keeps on getting smuggled inside pakistan and govt loses import duty..
Recommend
0
Dec 31, 2015 06:04pm
@bryan 5 billion USD. investment proposal did not go through, Bangladesh did not accept Rs.2000 crore transit fee......apprehensions is the only reason.
Recommend
0
Dec 31, 2015 06:05pm
@abbas then be a better businessman, be smarter and more competitive if you want to survive as a business
Recommend
0
Dec 31, 2015 06:07pm
@VGP Time line check. He offered in 2005 and Bombay occurred in 2008. Living People will change their opinion.
Recommend
0
Dec 31, 2015 06:34pm
Trade bring money and money have power to change hate to compassion and tolerance. We need trade between two countries and when common people livelihood depend on this ,there attitude will change.
Recommend
0
Dec 31, 2015 06:41pm
So many juicy proposals, good for time-pass discussions. But need to look into the ground realities. Ghulam Ali'concert were cancelled, Aleem Dar cannot
stand as umpire, PCB Chairman was insulted and could not hold meeting with BCCI, Pakistan' sportsmen are not allowed to play in Indian Leaves, Kasuri's launch of book was interrupted. No Indian, Polititian or common person condemned these acts of RSS or Shiv Sena. But Indians are giving us rosy pictures about Indian interest of investing in Pakistan.Before discussing any proposal of investment opportunities on reciprocal basis these ground realities should be taken into account. Will RSS allow any Pakistani to do business in India? Before bringing any such proposals India need to make the atmosphere congenial for Pakistanis. In China Pakistanis don't have such problem. Even illiterate Taxi driver in China also say " Pakistan and China good friends"
Recommend
0
Dec 31, 2015 06:58pm
If there is free trade with India ,pakistani cement industry can make huge profit
Recommend
0
Dec 31, 2015 07:02pm
@El Indiano ...totally wrong. China producing high quality goods as well. Different quality for different market. In China most of the manufacturers can adjust the quality as per the requirement of the buyers. Indian and Pakistani buyers ask for the cheapest quality. They will not accept the quality which is being exported to US because of high price. All US buyers pay commission to their agent for quality control. Pak or Indian buyers normally don't engage someone to control the quality to save 2 or 3% commission. All US departmental stores have buying offices in China to control the quality and to meet other requirements. Same brand Battery Cell have running time from few minutes to one hour. Buyer can chose the quality, cheaper or expensive.
Recommend
0
Dec 31, 2015 07:33pm
@Hamid shafiq These regulations are there due to the mistrust that exists between the two countries. But once that's cleared both governments would want to ease the restrictions on visa. So the priority is to bridge the trust deficit.
Recommend
0
Dec 31, 2015 07:35pm
@abbas That will not happen if Pakistan pursues a `Make in India' kind of a policy. It will instead help get more investments into Pakistan and generate jobs
Recommend
0
Dec 31, 2015 07:38pm
@Waseem Sarwar Totally agree. Granting Indian companies and other MNCs to set base in Pakistan to take advantage of the cost arbitrage will boost Pakistani economy. There will also be more money in the hands of consumers.
Recommend
0
Dec 31, 2015 08:08pm
This is similar case when India afraid of foreign companies in 90. Everyone think indian companies will shut down against foreign products. But we see actually reverse when Indian company become world no 1 like Mahindra beat john deer. Royal Enfield beat Harley Davidson worldwide. Tata tack over JLR UK. Tata take over Daewoo. Hero become world no 1 in bike sales. Indian companies targeting to be world no 1
Recommend
0
Dec 31, 2015 08:09pm
@Salman from Lahore I agree but that holds true everywhere in the world. That has to be challenged by the competing markets and governmental regulation.
Recommend
0
Dec 31, 2015 08:12pm
@Salman from Lahore That's the reason Pakistan is slow to progress. We keep making substandard products at higher costs. When true competition shows up, and even if they dump products, the buyers are in heaven. It's having more goods for less that leaves people enough funds to get something other than they had always gotten.
Free trade destroys unproductive businesses but shows the next generation what they need to do to rise up and compete globally.
Recommend
0
Dec 31, 2015 08:15pm
Trade and tourism is always good.
Recommend
0
Dec 31, 2015 08:18pm
@Alam very true.
Recommend
0
Dec 31, 2015 08:22pm
Every time I hear Indian hegemony, I smell sibling rivalry. So it means that India and Pakistan are natural siblings. Bhai Bhai ke kaam aayega. Ghar ki baat hain.
Recommend
0
Dec 31, 2015 08:27pm
Time is of made of Samsung, LG, Tata not of any country. who knows Made of Tata but manufactured in Pakistan. Believe in yourself and see the difference
Recommend
0
Dec 31, 2015 08:54pm
@Khanra Don't you think or know that China is bigger than India?
Recommend
0
Dec 31, 2015 09:10pm
@bryan --sensible statements.
Recommend
0
Dec 31, 2015 10:07pm
Mr. Tata's failed project is not a news Every on in manufacturing circle knows this. He refused bribe the enablers & handlers of Pakistan. A very sad story. A similar story has been published in a business magazine of USA about the Cargill, a agricultural giant could not get anywhere without a heavy bribe demanded by the top people. The VP of Cargill has disclosed the names also. The project was to build a food processing plant in South Punjab.
Recommend
0
Dec 31, 2015 11:12pm
Here is the common sense: Anytime a foreign country or entity is interested in 'investing' in your country, you can rest assured that they seek to benefit more from that 'investment' than they seek to impart.
So, by default any investment from outside implies a net loss (monetary or otherwise) for the country. The calculation, therefore can only be about balancing your gains vs your losses; with the understanding that there will be a net loss.
It is pathetic to even begin to compare China's investment with that of India. China's investment has strategic and security advantages for us. With India's investment, it is losses all the way -economic, cultural, and a very high degree of meddling. The only possible advantage - specially for poor countries who are on the receiving end of the bargains - is a possible technology transfer, which isn't worth pursuing in the case of any Indian investment.
Recommend
0
Jan 01, 2016 12:19am
Trade with India will affect the economy of Pakistan. In a positive fashion. Those who believe otherwise need to educate themselves on the fact that we can't live in isolation any more. There are benefits that both countries can derive from each other.
Recommend
0
Jan 01, 2016 12:35am
the intellectual orators seems to be convinced that very positive step in the direction of peace was derailed at certain odd action / reaction from Pakistan whether state sponsored or non-state actors. It is acceptable to all that every country would take the step in their own interest. However, the rule is also applicable to India too. Hence people to people contact & economic relations /bonding would bring both countries on table for mutually acceptable diplomatic solutions and the concerned authorities / leaders would have not to deal with the current public outcry / pressure.
Recommend
0
Jan 01, 2016 01:34am
@Pramod You are right on the money but the environment in which we live is too hostile and belligerent to just open just like that.We have to restore confidence and trust and open communication within common people, visa ease, other things that show normal civilized relations between nations like cultural exchange etc; Lifting of tight visa requirement where not just hundreds but tens of thousands can go across would be a great starter. And let's hope these exchange will create understanding towards better things for us both for which we have grown up dreaming.
Recommend
0
Jan 01, 2016 01:39am
Never trust Modi…that is all I can say.
Recommend
0
Jan 01, 2016 01:54am
@hamid H FYI there are hundreds of engineering units that have been shut down in Indian Punjab for lack of power and foreign competition most notably from China. Even the trade is heavily in China's favor crossing $40.00 Billion recently. China's export to India is almost everything value-add, mostly machinery, power and telecommunication equipment where India' share is mostly raw material like rayan ,iron ore etc:
Recommend
0
Jan 01, 2016 02:22am
@Salman from Lahore Chinese products are everywhere e.g pick up any souvenir in any western hemisphere and it is made in China. It includes American flags, statue of liberty, Big Ben and the Eiffel Tower.
Recommend
0
Jan 01, 2016 03:29am
@Asif Abdullah
Wrong. Chinese corporations are investing. They're setting up private power plants to sell electricity to the government, and the government is setting up free trade zones which have already seen interest from Chinese companies like Foxconn. Aside from massive investments in power generation, we'll have to wait for more firm investments since CPEC was announced only 8 months ago and requires patience. On the other hand, I've heard no firm investment offers from any indian corporation in Pakistan, so don't exaggerate the benefits of india versus China to us.
Recommend
0
Jan 01, 2016 04:20am
HAPPY NEW YEAR to all our Pakistani brothers and sisters.
Recommend
0
Jan 01, 2016 04:53am
@bryan you got a head full of sense ably supported by your shoulders. Praiseworthy thoughts and wishes. I wish the same.
Recommend
0
Jan 01, 2016 04:59am
Very fashionable to say that economics takes precedence over politics, if the West really believed that would not be working to contain China and prop up India to do just that. As long long as Hindutva extremists are trying to recreate a Mahan Bharat that never existed, it would be a source of constant friction with it's neighbor.
Recommend
0
Jan 01, 2016 05:06am
@abbas;
'$8 billion trade negative with China and it has adversely effected our manufacturing base'
What is adversely affecting our manufacturing base is that we cannot manufacture anything. Lack of values, law and order, corruption and terrorism is what is destroying our social fabric which is the base of our manufacturing base.
Recommend
0
Jan 01, 2016 06:09am
@bryan A very much thought provoking view. A golden key opens all the door is old saying but it is a universal truth.
Recommend
0
Jan 01, 2016 07:17am
@Salman from Lahore Opening the Indian economy to imports in 1990's was what accelerated Indian economy. Protectionism of the local industry will make it stagnant, they will have no incentive for better quality of products. But dumping of products must not be allowed,extra taxes must be imposed on dumped products.
Recommend
0
Jan 01, 2016 07:53am
Just a minute, my Pakistani freinds. Just think who purchases what?
Purchases are linked to our culture and eating habits and lifestyles. Pakistanis and Indians share common culture, eating habits and lifestyle - CHINESE DON"T.
90% of Pakistani products have ready market in India. Just imagine, how easily Pakistan can find a 100 crore population market - just by crossing the Wagha border?
India has a population of 20 crore Muslims - more than Pakistan! Most of Indian traders are Muslims. There is a great market for Muslim religious / cultural products.
Recommend
0
Jan 01, 2016 07:55am
@Saeed Masood - says who? what proof?
Recommend
0
Jan 01, 2016 08:39am
Problem of distance and enmity will be solved by trade. Trade is a win win for both the countries. There are so many articles which are not available in India and which can be imported. There are so many export items which are sent to Pakistan from Dubai rout, in the process doubling the price. Direct trade will afford cheap goods to Pakistani people. Transportation cost will be reduced and tie of delivery will also be reduced. I personally understand that Pakistan is not a fundamentalist country. Extremists are fringe elements having shrill voices. If they represent main stream, then they should have come to power in Pakistan and not Nawaz Sharief. There is so much hatred and venom in the minds of so many people. It is established fact that hatred means some day we have the potential to be good friends. Happy New year 2015.
Recommend
0
Jan 01, 2016 08:18pm
@Lalsinh;
We don't need any markets because we don't manufacture anything. Whenever we have 'democracy' we have a negative growth rate, then we catch up during military rules. The current 8 year 'democratic' rule has left us poorer than India and on our way to be equal Bangladesh.
Recommend
0
Jan 01, 2016 08:21pm
@Salman from Lahore;
'Now everything is Made in China. Needless to say thousands got unemployed due to dumping of Chinese products.'
Wrong! Thousands are unemployed because of dumping of hundreds of billions of dollars of our money in foreign banks.
Recommend
0
Jan 02, 2016 06:17am
I think both countries need to take baby steps first. First export bulk raw commodities (cement, cotton, vegetables/fruit/grain, ore, chemicals etc) through select Arabian Sea ports and land border crossings - where monitored Indian and Pakistani trucks can enter upto 20 kms into each other's territory to unload at road or railway heads for inland trans-shipment by national carriers. Then incrementally build to more trade, industrial set-ups and joint- ventures.
Recommend
0
Jan 02, 2016 07:57am
@parveez As far as I can remember, in 1991 India realised that protection didn't help and stopped it. The economy grew faster after that.
Recommend
0
Jan 02, 2016 08:00am
@A Pakistani How can anyone succeed in international trade following such practices? In India, goods meant for export are superior to what's sold locally: "export quality".
Recommend
0
Jan 02, 2016 08:38am
@Pramod
Do Not Agree at all
Look what is happening at Nepal & Bangladesh
Total Control of India Including Policitical & Economical
Pakistan Was Create because of 2 Nation Theory
India has Never Shown keen to Pakistan
Look to History & Its full of Hatesiam
If you ask Shiva Seena They will tell about Pakistan
We should Distance from India&Carry on China All Front Relationship & Will See change in Pakistan
Recommend
0
Jan 02, 2016 01:32pm
I think unless we don't trade on a lot of goods our economies cant prosper. A free market with limited taxation will increase competition and improve prosperity on either side.
The only people against trading are the ones with vested interests or a hateful mentality.
Pakistani cement is of a higher quality than what is currently produced in India- whereas Punjab and Gujarat can export power to energy starved Pakistan especially since we do not have a national grid setup in India yet.
That's just a small example of how this relationship can be mutually beneficial. By twining itself with India, it will ease any fears on the Pakistani side that India will attack it or obliterate it. Because let's be honest.. money talks.
Recommend
0
Jan 02, 2016 04:49pm
@abbas : Tata would have invested in steel and vehicle manufacturing and not the trade only . Manufacturing facilities at Pakistan definitely would have benefitted the domestic populace. Pakistan to strive hard to get production plant at Pakistan from chinese investors.
Recommend
0
Jan 02, 2016 09:10pm
Pakistan buys Indian goods routed through Dubai. It is the Pakistani consumer who suffers. Why not be direct ? Best to work for a South Asian Common Market. Pakistan can join when it feels it is in its interest to do so.
Recommend
0
Jan 02, 2016 11:41pm
West will never allow this. they will continue to create problem between these countries. But Pak & Hind has learned. May be they will act smarter and get united and rule the world
Recommend
0
Jan 03, 2016 12:17am
@Irfan
And don't you know China has never threatened to crush or isolate Pakistan? Don't you know China doesn't actively seek to undermine Pakistan on the international stage? It's not just hegemony which is the problem, it's the person who seeks to dominate you who also matters. Indians are obsessed with both undermining Pakistan and now also to economically dominate us. Yes some liberal Indians will deny this but read the editorial section on basically any Indian paper and you'll see what I mean.
I'm all for visa liberalization with India, but when it comes to trade, China is the better bet, and China is the more likely country to become a super power.
Recommend
0
