It isnt necessary to give the MFN status to India to get through the pipeline...the pipeline is more important for India as compared to Pakistan...
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*Originally posted by durango: *
So all those opposing giving MFN status to India, oppose the gas pipeline from Central Asian states to India via Pakistan?. Why is Pakistan so desperate to have India included in this pipeline project. Pakistan tends to gain a lot from this pipeline and without India it would not be feasible.
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That is all the more reason to stop it. Pakistan should stop everything which benefits India. Infact, It's not even necessary for Pakistan to have any trade relations with India. Why do they want cheap Indian products. They should be using high quality Pakistani products.
"Pakistan to declare INDIA 'Most Favored Nation'" :D:
mar na jatay agar a'aytabar hota. like it going to happen any time soon.
u r so right :k:
It would be a great mistake for Pakistan to declare MFN status to India. The main reason being there is no comparative trade, India is directly competing with Pakistan in the same products. Although some of our companies will do well, the problem will get intessified for others. Such as Steel Products, etx. As well there is the problem of foreign companies, they will more likely invest in India since it would give them economies of scale. Hence our Auto industry, would be heavily hit. China is allready causing us misery in the textile markets, and MFN with India will be very dreadful for us. WE should rather focus on providing nations such as Bangladesh, Sri Lanka,etx trade access to Pakistan, as it will benefit us. We are allready getting cheap tea from Sri lanka. Hence granting MFN status to India will mean a mass unemployment and misery for the masses.
Pakistan should declare all countries of the world as "Most Favored Nation".
That would simplify things. The consumers in Pakistan should have the choice to buy stuff at the lowest rate. Pakistani industries would have more incentive to be competitive with international companies. Pakistani farmers should produce in better and smarter manner to retain their competitive advantage.
With WTO and other newer international agreements, these protectionists policies will have to go anyway. They are never too helpful, in the long run... either to the consumer nor to the producer. They are just a way to hide our lack of competence and to fleece our Pakistani consumers by selling them low-quality stuff at higher prices.
prosperous and self-confidant pakistan is good for india .
stabilty and prosperity in both countries not just one country will
lead to real peace.
It would be a mistake to all of a sudden just open up for competition. The countires that do well in those circumstances are the ones who have allready developed. And then they can bombard the countires with cheap goods hence the less developed country is unable to develope its own industry. I'm not suggesting that we close our borders and not let anything in. What I'm suggesting is first we need to develope are industry let it mature, like how the auto parts industy is in pakistan. And then slowly remove trade restrictions. Otherwise if you want to just open up your borders, then be ready for increased poverty and massive unemployment and the collapse of industries. competiton is good, but first we need to let the industries stand on there own and then introduce internal competion then we go into external. anyways thats my two cents
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*Originally posted by Bhadsha: *
first we need to let the industries stand on there own and then introduce internal competion then we go into external.
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Internal competition? What is that?
And how long do you propose we let the "industries stand there own"? Pakistan's major industrialization started in Ayub Khan's regime. That was in the 1960's. Right now, we are in 2003. Thats 40 years. There are a host of reasons why our industry (and our agriculture) is not where it should have been had we capitalized on the momentum of 1960's, but the primary factor which is apparent is the massive nationalization and protectionist policies of the 1970's. Check out our Industrial growth charts from 1960's to 2000 and read up the Economic guides issued for these years. They provide a commentary on whats wrong with our industry and agriculture sectors.
In summary, as long as we insist on protecting our industry from outside competition, we may feel, we are sustaining growth and protecting labor, but effectively we are burdening our country with inefficient and non-competitive infrastructure. And screwing up the consumer, full time.
And lastly, despite how much we'd want to protect our economy, we must remember that Pakistan is a signatory to WTO. What do you think will be happening as WTO's regulations will keep on getting into effect? Will we be able to keep our our economic borders closed out? Granting India MFN is probably not even that big a deal. We have much bigger issues to deal with.
We should identify objective parameters and then compare our industry against those benchmarks. When I was in Pakistan, a number of our Industries were going for ISO certification. I am sure the process is on-going. Trade agreements are always quid pro quo. If we create restrictions, the other countries (e.g. India) will do likewise. We should allow our industry to compete with rest of the world. Let them prove their mettle. If they are not good enuf, they are not in the right business. Either shape up or ship out.
Well, I will be talking about the difference between Indian government and Pakistani government's attitude in handling trade and agricultural sectors. While Pakistani industries are loaded with taxes, the rate of taxes on Indian industries are less, hence making their goods cost effective. The farmers in India are provided with subsidies in power, water, fertilizers, hence their vegetables are also cheaper in Pakistan. If Pakistan gives India the MFN status, within a few years Pakistan will just become a shuttle state of India, having no industry of its own, ie. totally dependent upon India for survival.
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*Originally posted by Faisal: *
Pakistan should declare all countries of the world as "Most Favored Nation".
That would simplify things. The consumers in Pakistan should have the choice to buy stuff at the lowest rate. Pakistani industries would have more incentive to be competitive with international companies. Pakistani farmers should produce in better and smarter manner to retain their competitive advantage.
With WTO and other newer international agreements, these protectionists policies will have to go anyway. They are never too helpful, in the long run... either to the consumer nor to the producer. They are just a way to hide our lack of competence and to fleece our Pakistani consumers by selling them low-quality stuff at higher prices.
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If necessary, we should only import things that are woth importing from india, with standards and adequate monitoring set on quality...
instead of giving India the MFN status, we should move towards giving that status to China, and the remaining neighbouring states excluding India. When we feel that our industry can compete with the Indians then only we should give them the MFN status. We shouldnt get carried away with the Indian demands and in return lose our way.
India is doing the same. Why do you think that they are not granting the MFN status to China?
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*Originally posted by Faisal: *
In summary, as long as we insist on protecting our industry from outside competition, we may feel, we are sustaining growth and protecting labor, but effectively we are burdening our country with inefficient and non-competitive infrastructure. And screwing up the consumer, full time.
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And I am saying, once more, that in the short term and the long term, protectionist policies are (1) Not permitted, and (2) Not beneficial.
If India is promoting its industry by lowering taxes, then what stopping us from re-evaluating our tax base? Farm subsidies is a hotly contested area of taxation. Personally, I don't agree to those. I think agriculture should be treated like any other business, cz it is, after all, a business. Why should tax-payers be subsidising farmers for not using efficient methods of harvesting and producing crops? Natural disasters is something else. Anyway, thats another long discussion.
Pretty soon, India and China and Pakistan and all other signatories will be continuing to streamline their local taxation, customs duties and other trade matters in line with requirements of WTO. That will level the playing fields for local industries and their foriegn competitions. These issues of granting MFN's will and are becoming kinda moot.
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*Originally posted by zaavia: *
India is doing the same. Why do you think that they are not granting the MFN status to China?
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Your whole argument is based on one simple logic - 'India is not granting MFN status to China, that's why Pakistan Shouldn't grant it to India' . India grants MFN to China is India's business, Why should India Grant MFN status to China when China has not done that to India ?
That said - I am not saying that Pakistan should grant MFN status to India, It's Pakistan's business not mine.
About India-China trade do some reading and you will find that India stands to gain more than China incase both countries decide to grant MFN to each other.
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*Originally posted by zaavia: *
instead of giving India the MFN status, we should move towards giving that status to China, and the remaining neighbouring states excluding India. When we feel that our industry can compete with the Indians then only we should give them the MFN status. We shouldnt get carried away with the Indian demands and in return lose our way.
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Granting MFN status to China would be a total disaster for Pakistan. China's industrial base is significantly stronger and cheaper than India's is. If you fear a strongly negative balance of trade with India, the situation will be dramatically worse if MFN status is given to China.
What the government need to do is pass laws to increase the comptetiveness of Pakistani industry. Make the workforce even more flexible, and lower the taxation burden on industry. Provide subsidies (careful monitored by the NAB) to industries to enable them to get contracts abroad, etc etc. The main priority must be to strengthen Pakistan's industrial base before anything else happens.
Water from India Ok
Land from India Ok
Smuggled goods from India Ok
Hindi movies OK
Legal imports from India? oh no!
Get real dudes 
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*Originally posted by Asif_k: *
Actually, Pakistan should not do any business with India at all - MFN or No MFN. They should have their trade relations with China at least they can get the QUALITY chinese products. That will really boost their Industry bases in Pakistan and must be in Pakistan's interest. ;)
PS :- Please Read the full Article, It will tell you more about the MFN. :)
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I agree with you but...yes there is a but. Bad relations with India would be very harmful. Think of the consequences of war with India. It is like having a fireworks exhibit in the living room. hehe
Chinese split units hit local AC industry
http://www.dawn.com/2003/05/20/ebr1.htm
LAHORE, May 19: Several hundred workers employed by three window air-conditioner manufacturers of the country may lose their jobs because of an increased influx of the low-cost Chinese split units that have almost wiped out the demand for the former.
“Our production of window air-conditioners has dropped to 5,000 units this year from 30,000 only two years ago due to the drastic fall in the rates of the split air-conditioners. It’s obvious that we may be forced to shut down window air-conditioner facility next year, and retrench labour if the situation does not change,” says PEL’s General Manager (Manufacturing) Homaeer Waheed
MFN is a WTO principle. It means that we wont tax the Indian products any higher than what we tax the rest of the world. If imported beef has a 20% tarrif. India gets the same percentage instead of one that was 50%. This is just an example. But honestly it is not that big a thing. It is basically a non-discrimination principle. It is GATT Article 1 and you guys can read it on the WTO website.
Little knowledge is never a good thing. Read up on MFN first.
It will make no difference at all except in revenue generated by the government.