Re: India and Pakistan in historic trade boost.
what industries? so far trade seems to be all kinds of produce filling in gaps in local production. tomatoes! cattle! you guys make it sound like the blooming semiconductor industry of multan is under severe threat from indian imports.
Farmers are the largest population in Pakistan, importing cheaper tomatoes, cattle or wheat affects Pakistan a lot.
Re: India and Pakistan in historic trade boost.
Trade with India is a waste of time. We get no economic benefits out of it. Why do you think people who work for the World Bank in the past 8 years never thought of pushing better trade ties? They got 7 FTA's signed in those 8 years to extend our trade. They established EPZ and cut taxes and import duties. But no trade with India....why?
Because it makes no sense economically. Forget politically.
Re: India and Pakistan in historic trade boost.
We should just do trade in those commodities wherein it is beneficial to both. Eg:-cement is being imported from pakistan to india as it will bring down the costs in india. But cheaper diesel can be bought from india to pakistan, but pakistan is not willing to do that.
Re: India and Pakistan in historic trade boost.
pak has the highest prices on food in the subcontinent currently. and a wheat surplus which undergoes a lot of political manipulations. trading produce and wheat alone brings benefits to pakistan.
india is on an infrastructure-building spree, there is a serious cement shortage. pakistan has a cement industry not in full production selling cheaper cement.
why is this not economically sensible?
Re: India and Pakistan in historic trade boost.
pak has the highest prices on food in the subcontinent currently. and a wheat surplus which undergoes a lot of political manipulations. trading produce and wheat alone brings benefits to pakistan.
they might fear loosing many jobs..that too sensitive farming jobs.
Re: India and Pakistan in historic trade boost.
When trade is opened up or India is given MFN status that allows all products to travel across the board. Lets take cheaper wheat products.
In any economy the distributers shall seek the lowest cost for the commodity they wish to sell. So in the case of wheat the distributers shall buy cheaper Indian wheat instead of Pakistani wheat. Though the consumer is better off, the economy and the average person is not. Since the majority of Pakistan's work force is in agriculture, they do not get paid for their work. If they do not get paid, they can not buy other domestic goods like a radio. That affects the radio market in Pakistan.
One sector in the economy doing poorly affects all other sectors. In Pakistan if the income from agriculture decreases, all other industries will take a hit.
Open up other sectors and I will show you why it doesn't benefit Pakistan.
Re: India and Pakistan in historic trade boost.
Irrespective of what pakistan does, indian government should import some stuff from pakistan or any other country, to keep the inflation under control.
Re: India and Pakistan in historic trade boost.
punjab arguably has the most fertile plains of the subcontinent. there is no place with a higher per unit area production of wheat. how then can they lose out on farming jobs? how can pakistani wheat be more expensive than indian wheat, if it isnt chaudhry politics?
Re: India and Pakistan in historic trade boost.
When trade is opened up or India is given MFN status that allows all products to travel across the board. Lets take cheaper wheat products.
In any economy the distributers shall seek the lowest cost for the commodity they wish to sell. So in the case of wheat the distributers shall buy cheaper Indian wheat instead of Pakistani wheat. Though the consumer is better off, the economy and the average person is not. Since the majority of Pakistan's work force is in agriculture, they do not get paid for their work. If they do not get paid, they can not buy other domestic goods like a radio. That affects the radio market in Pakistan.
One sector in the economy doing poorly affects all other sectors. In Pakistan if the income from agriculture decreases, all other industries will take a hit.
Open up other sectors and I will show you why it doesn't benefit Pakistan.
we need not do free trade. when the prices are brought under control of any commodity, the imports could be automatically stopped. and there shouldn't be more job losses as well. I don't know the details of whether this will work out or not, but should be possible
Re: India and Pakistan in historic trade boost.
punjab arguably has the most fertile plains of the subcontinent. there is no place with a higher per unit area production of wheat.
Inspite of all that, both india and pakistan are still wheat importers i guess.
Re: India and Pakistan in historic trade boost.
Fertile soil has nothing to do with it. It has to do with economies of scale. More people produce more goods which lower the costs and thus in theory should lower the price.
That is why larger economies like China and India are a threat to the EU and US and not Malaysia or Singapore.
Re: India and Pakistan in historic trade boost.
we need not do free trade. when the prices are brought under control of any commodity, the imports could be automatically stopped. and there shouldn't be more job losses as well. I don't know the details of whether this will work out or not, but should be possible
This is not a bloody water tap that you turn on and off. Its commerce worth billions of dollars.
Re: India and Pakistan in historic trade boost.
Fertile soil has nothing to do with it. It has to do with economies of scale. More people produce more goods which lower the costs and thus in theory should lower the price.
firstly, agriculture isnt a manufacturing type of industry. land/soil, climate, and good practices trump number of people involved.
secondly, even if manpower was important, punjab is one of the most densely populated areas in south asia.
wheat prices in pakistan have nothing to do with true demand or supply.
Re: India and Pakistan in historic trade boost.
This is not a bloody water tap that you turn on and off. Its commerce worth billions of dollars.
that I will leave for commerce and beaurocrats to decide. After that, left to them to decide.
Re: India and Pakistan in historic trade boost.
Ssingh, sorry that outburst was uncalled for. I apologise.
Queer, manpower affects agriculture like any other industrial because it is the variable input by which production increases.
And let me get this straight you are stupid enough to say that wheat prices have nothing to do with supply and demand?
Re: India and Pakistan in historic trade boost.
you are clutching at straws.
wheat prices in pakistan, yes. nothing at all to do with supply or demand. pure state-sanctioned manipulation.
Re: India and Pakistan in historic trade boost.
Queer is right in this case.
OMG, I am agreeing with a queer!!! 
Re: India and Pakistan in historic trade boost.
Let me get this straight you are saying in pakistan the entire distrubution network for wheat is run by the Government? Now that is sheer stupidity.
Anyway I made my point earlier that distributers shall buy cheaper goods to sell. Which in turn means that Pakistani wheat is not bought. If it isn't bought, the farmers aren't paid.
Re: India and Pakistan in historic trade boost.
your whole argument is that indian wheat is cheaper. which is not true.
fact: pak is the one who is exporting wheat to india.
please do not argue about matters you are clueless on.
Re: India and Pakistan in historic trade boost.
LMAO!. Look at your own post ....
[quote]
pak has the highest prices on food in the subcontinent currently. and a wheat surplus which undergoes a lot of political manipulations. trading produce and wheat alone brings benefits to pakistan.
india is on an infrastructure-building spree, there is a serious cement shortage. pakistan has a cement industry not in full production selling cheaper cement.
why is this not economically sensible?
[/quote]
Ohh but I forgot, wheat is not a food product.