The Hindu Business Line : Indo-Pak private initiative for co-ordinated export strategy

Joint strategy
Four members from the private sector will be identified from each country to be part of the joint study group,
Possibilities for forming joint ventures could also be explored.

Our Bureau

New Delhi, Nov. 17 A joint study group between India and Pakistan is being initiated at the private sector level to explore possibilities of a co-ordinated export strategy between the two nations.

Four members from the private sector will be identified from each country to be part of the joint study group, which will make recommendations for enhancing the combined export share of India and Pakistan in the world market.

Apart from identifying the likely social cost of such an arrangement on the businesses, the group will also lay special emphasis on the cooperation in the textile sector, Mr Tariq Ikram, Chief Executive, Trade Development Authority of Pakistan said at a meeting with Indian businessmen organised by the PHD Chamber here on Friday.

Referring to the scope of such arrangements in the textile sector, he noted that the combined market share of India and Pakistan in world textile exports in segments such as garments, made-ups, and towels was far below that of China.

A joint strategy for marketing such goods in the international market would be beneficial to both the countries. Possibilities for forming joint ventures could also be explored.

proper mapping

Mr Ikram said a proper mapping of goods that can be imported from each other’s country should be undertaken at the earliest, since this will help in reducing the transaction costs. Currently, most of the goods traded between the countries are through third countries, such as Dubai and Singapore.

India can import directly from Pakistan, products such as oil and oil products, cement, fishery products, fruits and vegetables, cut and uncut diamonds, and engineering goods.

Citing the breakthrough in the case of import of cement from Pakistan to India through the Wagah Border, he said some glitches still exist and this resulted in idling of vehicles for a long time. He expressed the hope that once the political process gains momentum, such issues would be resolved.

Crucial role

“Similarly, resolution of issues like business visas, delays in issuance of visas, among others are part of a holistic package, where political considerations will play a crucial role,” he added.

Mr Ikram said the official trade between the two countries had picked up from a few million dollars in the early nineties to $ 1.6 billion in 2006. India’s exports to Pakistan are pegged at $ 1.2 billion.

Mr Zafar Mahmood, Secretary, Ministry of Textile Industry, Pakistan, underscored the need for India exporting to his country large quantities of cotton against the backdrop of India becoming surplus in the segment, with the introduction of Bt cotton and improvement of per hectare production. The other areas include ginning machinery manufacturing which is low in Pakistan as compared to India.

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Indo-Pak private initiative for co-ordinated export strategy