Market Access More Important than MFN - Pak Minister - Meena Menon,
The Hindu
Ok, if MFN is a mere phrase, then grant it and fight for market access. After all, you can even take the fight toWTO as you usually seek 'international justice' in bilateral matters such as Rann of Kutch or IWT etc.
The big question is the MFN status. What are the main areas which need clarity and which you will be talking about?
There is a sense that India, which gave MFN to Pakistan in 1996, did not give it market access. These two go together unfortunately. Pakistan on the other hand might not have given MFN to India but has given substantial market access and this has now been reflected in our trade figures. {So, it makes all the more easy to formally grant MFN which, as per you, is a mere jargon} The trade balance has in fact increased manifold in favour of India. Pakistan’s exports last year were $327.496 million while Pakistan’s imports from India totalled $1809.867.
MFN as a designation and a technical term WTO and India can ask for but we have been talking to the Indian government to say, let’s call it non discriminatory access (NDA), or as some call it, non discriminatory market access. NDA is a more useful and workable term. {When the whole world has agreed on MFN, this terrorism-alone exporting country wants to call it by a different name}
In Pakistan there are certain sectors that have reservations on trading with India. Agriculture is one of them. The others are pharmaceutical, auto parts and automobiles, the synthetic fibre based clothing or fabric. {Why should pharmaceutical sector of Pakistan have any problem with opening it up to Indian drugs ? After all, they do not produce any drugs, they do not discover anything, they have no R&D, they have nothing. And, drug prices in TSP are very high. Common folks would benefit immensely if drugs are imported from India as they would pay much less. Also, automobiles ? Why should they have reservations ? After all, they make only Sitaras ? Instead of importing from European counries at high price, they can get latest automobiles at a much cheaper price from India.}
The other issue of course is that trade does not happen in a vacuum. In order for trade to be established on a firm footing- an equally crucial part, which people tend to forget, is investment. Trade and investment must flow across the borders and for investment to take place there must be a certain comfort level. {Look who is talking about comfort level ? } That can only come from the peace and the political side. MFN is also connected with that — how the Pakistani nation perceives India as conducting itself and similarly, and how the Indian people perceive the Pakistani government as conducting itself.
What are issues that need to be addressed to create a level playing field?
As we see it, the very strict visa regime from India is the biggest non-tariff barrier. This impaired facility of businessmen from both sides who are unable to travel to the other country is the biggest non tariff barrier. The fact that we don’t have a banking relationship, that’s also an impediment to trade. We hope to make some progress on that when I go to India.
In agriculture there is this whole complex of phytosanitary issues which we need to deal with. Three agreements in 2012 specifically aimed at reducing non tariff barriers but both countries are yet to implement them. First of all we need to evolve a recognition of standards that we hoped would happen which hasn’t yet. {There is no worthwhile standards organization in Pakistan. We realized that when we started importing cement from them about five years back. When we subjected the Pakistani cement to Indian testing and it failed, they cried wolf and since then have been complaining of this as a non tariff barrier. What they want is that India as a big brother and with a small kafir Hindu heart must simply accept whatever a momin sends across the border, including terrorism, because they are 'entitled' to that.} The other was customs facilitation and the third was visa- on all three agreements we are hoping [to] start implementation and we hope the Indian government will reciprocate.
Is the ball in your court for MFN? And when do you hope to grant it? Will it be after the new government [in India] this year?
No, the ball is in both courts when it comes to abolition of the negative list on Pakistan side, the reduction of non-tariff barriers on India’s side. We will deal with whoever [comes to power after the elections]. There is enough momentum on trading relationship and also on peace. We are serious in having a peaceful relationship with all [our] neighbours and a robust economic relationship and peaceful South Asian region. Giving MFN depends on what kind of expression of goodwill the new [Indian] Prime Minister [after the elections] will make towards Pakistan - if there is great progress on non tariff barriers, visas etc. I think there are certain steps that we need to take before we reach the final stage of achieving a normal trade relationship. Ultimately, MFN has to be given. {He has clearly articulated the redlines for MFN. Three years back, when Indian ministers and the Press, went gaga over the imminent grant of MFN - some even said it had already been granted - we said here in BRf that Pakistan was just baiting us and it would not happen.}
What about trade restrictions at the Wagah border. Is there some move to make things easier for goods to go across to India?
This is going to be a major agenda in New Delhi. We just need an agreement. We will talk about this. We need to work through the day, have double or triple shifts. We are also going to talk about containerising the cargo. Scanning would move things quicker. Wagah facilitation is an issue, and we hope to have closure. {All the problems at Wagah are due to TSP. They do not have modern scanning facilities. They allow much less number of importable items through truck here etc.}
Do you think the environment is right for trade and business between India and Pakistan? Are there any issues the business community would like to take up with the government in India?
The issue is the goodwill of the Indian government, which we appreciate. The desire and willingness for peace have to percolate down to customs official — that hasn’t happened. When we talk of non-tariff barriers, most Indian officials simply come back and say this is not something that is Pakistan-specific. {Which is quite true. TSP cannot expect us to dilute Ts&Cs for Pakistan alone, which in any case is an enemy country sponsoring terrorism against us from President downwards. They should be pleased and grateful that we have decided to trade with them in the first place.} This willingness and goodwill of the Indian government have to reach down to the officials. Unless that happens, things won’t change.
Is there any progress on banking?
The State Bank of Pakistan (SBP) has just written a letter to the Reserve Bank of India. The original understanding reached in 2011 was to allow two banks each to [open branches in the other country] but when I was accompanying the Punjab chief minister [Shabaz Sharif] to Indian Punjab and Delhi recently and when we met the Indian commerce minister, we were told the Indian government has since reduced the restrictions. It was no longer the issue of how many banks. Any bank that applies from Pakistan and fulfils the legal criteria, we were assured, will be given a licence to operate in India. It has not happened yet. SBP has written to RBI that there are three banks which are interested in opening branches. We have goodwill and understanding but we cannot open bank accounts. Another thing we need progress on is maybe to allow roaming on cellular networks — it’s a big issue.
And just slightly over a month back Dawn was reporting that the Islamic Republic of Pakistan’s Prime Minister was claiming a 5.1 GDP growth rate 
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