Indo-Pakistan Trade and Investment relations must go ahead for regional prosperity: S.M. Muneer

Islamabad, January 31, 2013 (PPI-OT): Mr. S. M Muneer President of the India Pakistan Chamber of Commerce and Industry (IPCCI) expressed its serious concern over recent tension on Line of Control between India and Pakistan which suspended cross border trade around 20 days and also delayed Commerce Secretary level talks which was due in February.

He stated that the escalation of tensions on Line of Control not only threatens the normalization of ties and it can create again trust deficit, which was the largest hurdle in improving the bilateral relations during the past decades.

He believed that there is encouraging improvement in bilateral relations during the last year that increase Pakistan’s export to India around US$ 460 million just last nine month which is in favor of Pakistan.

Mr. Muneer further stated that the process of trade liberalization between Pakistan and India must go ahead in order to establish long-lasting peace and stability in the region. He added that the LoC tension provides an opportunity to propagate for reversal of all those measures taken so far and if recent tension doesn’t confiscate on time then the movement of goods through indirect channels again goes up which cost 25 percent more in term of transportation cost and others and also invite cross border smuggling.

He said that the normalization of bilateral trade will also stabilize the prices of commodity particularly the consumer goods prices in Pakistan. Moreover, it also enhances the export of leather products, textile items and cement.

He also suggested the customs authority of both countries to speed up the clearance of perishable goods consignment at both borders which was impeded since twenty days and already created loss to around US$ 30 million.

He said that the business community of both countries is very much keen to establish strong and significant investment and trade relations because trade and investments are indicators of growth and development, which not only create employment opportunities it also help in alleviation of poverty.

It is a time that both countries should gain from the experience of one another by diverting economic resources from non desirable to desirable areas. He emphasized on the continuous ongoing effort for the promotion of bilateral trade which would gain access to more advanced technology.

After recent development, India and Pakistan economies are more interdependent and have created many opportunities for undertaking investment in different sectors. He urged the government of both countries to develop and implement suitable mechanisms to ensure steady communication between the concerned authorities of both sides in order to prevent the reappearance of ceasefire violations and to normalize the trade and economic relations. Because this will lead to exploration of the huge trade and investment potential for economic growth, and the prosperity and success of the entire region also depends upon the better relations between India and Pakistan.

For more information, contact:
Syed Masood Alam Rizvi
Secretary General
Federation of Pakistan Chambers of Commerce and Industry (FPCCI)
B-1, Federation House, Main Clifton Road,
Karachi-75600, Pakistan
Tel: 0092-21-35873691, 93-94
Fax: +9221 3587 4332

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