'Made in Pakistan' trade fair planned

Society Business and Career
1

Great idea and a good way to go forward! Does anyone know how these free trade agreements are being set? Will the two countries allow each other’s businesses to openly and publicly advertise their goods or is it only through the governmental channel?

‘Made in Pakistan’ trade fair planned](http://www.gulf-daily-news.com/Articles.asp?Article=75470&Sn=BUSI)
NEW DELHI:

India will host the first-ever trade fair showcasing goods made by Pakistan at an exhibition in the capital in March, a report said yesterday.

The “Made in Pakistan” fair is aimed at allaying concerns that a South Asian free trade zone would lead to Indian goods swamping Pakistani markets, the PTI news agency reported.

In January, the seven-nation South Asian Association for Regional Co-operation or Saarc agreed to create a free trade area embracing Bangladesh, Bhutan, India, the Maldives, Nepal, Pakistan and Sri Lanka.

“There’s an apprehension, a fear in the minds of our Pakistani counterparts, that Indian goods would flood their markets,” said Y K Modi, one of the fair’s organisers.

“This exhibition is to make them comfortable and confident.” The fair will have 100 stalls exhibiting Pakistani handicrafts, fashion garments, melamine products, glassware, pharmaceutical and consumer goods.

The exhibition will be preceded by a conference on India-Pakistan economic ties on March 2, expected to draw 150 Pakistani businessmen.

It is aimed at helping smooth the implementation of the free trade area which will cover a region that is home to 1.4 billion people.

Trade between India and Pakistan is valued at a scant $206 million annually.

Pakistan’s imports from India in the year ended March 2001 totalled $186m while India’s imports from Pakistan stood at $60m, latest figures show.

2

Great initiative. These in any event are official channel figures, the unofficial figures are at least 3-4 times of the bilateral import figures quoted above.

I believe to begin with, the bilateral trade will only be conducted with governments' involvement to keep an eye on issues as dumping etc; as things improve and confidence levels go high, it may change.

3

Khanu Bhai, how serious is the concern that cheap Indian products will flood Pakistani markets?

And how is it going to affect the currency stuff? Are they going to trade in Rupees or $ or Euro?

4

[QUOTE]
*Originally posted by ahmadjee: *
Khanu Bhai, how serious is the concern that cheap Indian products will flood Pakistani markets?

And how is it going to affect the currency stuff? Are they going to trade in Rupees or $ or Euro?
[/QUOTE]

Dont you think similar Pakistani products would be cheaper because of the currency rate. Also India being a bigger market ( 1billion) for Pakistani goods.

1 dollar = 45 Indian rupees
1 dollar = 58 Pakistani rupee.

5

Ok, here is another article I found on BBC

**India-Pakistan thaw benefits trade **
By Monica Gupta
BBC correspondent in Delhi

Attempts to normalise relations between India and Pakistan appear to have benefited Pakistan’s trade with India.

Indian commerce ministry data shows that Pakistan’s exports to India from April to September 2003 have more than doubled to $32m, up from $15m in the corresponding period last year.
Interestingly, India’s exports to Pakistan during the same six month period have declined to around $68m, from $107m during April to September in 2002.

India’s Trade and Commerce Minister Arun Jaitley is not unduly worried about the increase in Pakistani imports.

Saarc’s importance

“I would not give too much importance to these figures. Even today the overall trade balance [with Pakistan] is in our favour,” he told reporters.

“Also with our foreign exchange reserves increasing substantially, these figures are quite irrelevant.”

He says the decision to implement free trade area in the South Asian Association for Regional Co-operation (Saarc) region by 2006 and attempts to normalise relations between India and Pakistan, will mean bilateral trade will increase.
Meanwhile, a 30-member delegation of Pakistani businessmen from the Karachi Chamber of Commerce and Industry (KCCI) visiting India says it is keen to develop joint ventures in areas of common interest.

“Textiles is one area where the two countries should work together to tackle competition from China once the textile quotas are removed in December this year,” says M Zubair Motiwala from the group.

Price differences

Bilateral trade between the two countries from 2001 to 2002 was pegged at around $200m. However, unofficial trade is estimated to be close to $2bn. According to experts there is potential to increase bilateral trade to $3bn-4bn.

Existing trade barriers between the two countries have come in way of businessmen taking advantage of price differentials.

**For example, cars in India are nearly 40% cheaper than in Pakistan; drugs in Pakistan are four times the cost of those in India. **

Raw cotton, pulses and dry fruits, however, are cheaper in Pakistan.

Story from BBC NEWS:

6

ahmad: more than 'flooding' in the literal sense of the word, let's use the word acceptance and uptake. The uptake of indian goods in pakistani markets will be high because of relatively high purchashing power of the pakistanis (i am talking on an average basis, because there are skewed population samples on both sides of the border). that is why, it may be so that pakistanis will be more open to accepting them vis-a-vis indians. I am not too sure, however if the governments are involved, then this trade will occur on the official exchange rate of both countries (which is pegged to dollar anyways) so we should not expect any change in this exchange rate, specifically because of this bilateral trade.

7

Pakola/Shan Rules

Pakistani wares on show in Delhi
By Monica Gupta, BBC correspondent in Delhi

Women’s clothes and spices produced in Pakistan are drawing the crowds at the “Made in Pakistan” exhibition being held in New Delhi.

The exhibition - the first of its kind in India has close to 300 exhibitors participating from across the border - who include over 40 women.
Farhad who runs a boutique called Ethnic Enterprises in Pakistan has brought salwar suits, dupattas and kurtis (traditional dresses worn by women in both countries) to sell at the exhibition.

“I had come earlier during the India International Trade fair in November last year. The response was very good, which is why I am here again,” she says.

‘High prices’

Another lady exhibitor Nuzrat, who is also a boutique owner, says the Pakistani salwar suits for women are better quality and have finer embroidery.

Indian buyers particularly women thronged the stalls selling suits and cosmetics, although some felt the clothes were too steeply priced.

**A stall selling Pakola, a Pakistani fizzy drink, also attracted attention. **
Qamar Pervez Khan of Pakola says this is the first time that his company has brought the drink to India.

“Our drink is a purely Pakistani product. It is popular in several countries including Afghanistan… and even the US, and we are hoping that it will gain popularity here,” he said.

Spice wars

Shan Food Industries, whose packaged spices include a product called “Bombay biryani masala”, are extremely popular back home.

**“We are hoping that our Indian brethren will enjoy our taste and flavour. Though Indian spices are also well known, we are giving them tough competition in other countries, particularly the US,” says Shan’s Khalid Idris Malik. **

Y. K. Modi, president of the Federation of Indian Chambers of Commerce and Industry, whic is jointly organising the exhibition with its Pakistani counterpart says the main objective of holding the exhibition is to educate people in India about what can be purchased from Pakistan.

Third party trade

“If the price and quality of their products is good, Indians will buy their products,” he says.

Mohammad Amin Khatri, who is the director of the Pakistan Pavillion at the fair, says the exhibition will help boost direct trade between the two countries.

“Presently a large part of the trade takes place indirectly through third countries like Dubai. Under the WTO regime, both countries have no option but to trade with each other,” he says.

Bilateral trade between India and Pakistan is presently valued at between $200-$250m, while unofficial levels are estimated at over $1bn.

Published: 2004/03/03 18:03:27 GMT