A crisis developing in Pakistan following increased tension between its government and that country’s military has claimed its first casualty in neighbouring India.
A 20-member business delegation of Assocham, which was to leave from here for Pakistan tomorrow, has rescheduled its visit for March, amid friction between President Asif Ali Zardari and Army chief Gen Ashfaq Pervez Kayani in Islamabad.
That apart, uncertainty looms large over a “Made in India” show organised in Lahore in February, given that the crisis seem to linger further. That event is being organised by the commerce ministry in association with the Confederation of Indian Industry, Federation of Indian Chambers of Commerce and Industry and India Brand Equity Fund.
Industry and business chambers hope the crisis would blow over soon as peace in Pakistan would be beneficial for both the countries to increase trade and commerce. According to the commerce ministry data, trade between India and Pakistan has surged to $2,666.13 million in 2011 from $344.59 million during 2003-11. The informal trade, including third country trade between India and Pakistan, was estimated at $10 billion.
Assocham secretary general D S Rawat said the chamber alone had hosted five delegations. “Only this month, India and Pakistan women’s confederation has been formed to exchange goodwill mission,” told Business Standard. “However, unforeseen circumstances forced us to reschedule to March the visit of a 20-member delegation of businessmen.”
Assocham has renewed in this month memorandum of understanding with chambers of Karachi, Lahore and Islamabad and with the Federation of Pakistan Chamber of Commerce, he added.
Rawat noted that India needs a safe, progressive and matured neighbour, which would benefit both and also the SAARC. “We are already in the process of releasing a study on post-MFN status and identifying areas of emerging businesses,” he said.
Federation of Indian Export Organisations (FIEO) admitted that only an elected government in Islamabad could ensure a headway that India and Pakistan had made to increase cooperation for boosting trade and commerce. “We would like to interact with elected government as it will help prosper the overall interest of Indo-Pak economic relations,” FIEO president M Rafeeque Ahmed said.
Next month, the commerce ministry, in association with the Confederation of Indian Industry, Federation of Indian Chambers of Commerce and Industry and India Brand Equity Fund, has organised a ‘Made in India’ show at Lahore. Many are participating in the same show. “We hope the present crisis will be over soon,” Ahmed said. “However, if the present uncertainty lingers, then it will have some bearing on the Indian participants in the ensuing event.”
World Trade Centre (WTC) said India was keen to improve trade relations with Pakistan, but noted that would be possible if there was peace and political stability. “Pakistan politics has always been volatile and unpredictable,” said Debjani Chowdhury, joint director (research), WTC. “India will have to take a cautious approach during the current crisis. Even traders will like to be cautious. Trade really cannot attain full potential during instability.”
CII said it hoped that the crisis in Pakistan would blow over soon. “We are planning to take a mission in February to Pakistan,” according to Sushanta Sen, the chamber’s principal advisor.
