Trade with India to inch up exports – Alfalah Securities Limited

Karachi: Pakistan is in final stages of granting the “Most Favoured Nation” (MFN) status to India to bolster trade between the two countries. So far the opening of a dedicated international trade gate at Wagah- Atari border has been postponed till April 30, 2012 as the Indian side has yet to complete the construction work.

According to Alfalah Securities Limited, Pakistan has allowed only 1,946 items of imports from India, whereas New Delhi has permitted imports from Pakistan of all products except a few items in the Indian negative list. According to industry estimates, the MFN status between the two countries can result in approximately USD 10 billion bilateral trade by 2015. The sectors and respective number of item in the proposed negative list included, food and agriculture 16, minerals 3, chemical 4, pharmaceutical 32, plastics 74, rubber 24, paper and wood 55, textiles and clothing 77, ceramics 15, iron and steel 25 and auto sector 311 to protect the local industry. Moreover, after the commencement of trade with India, Alfalah Securities Limited believes Pakistan would be in a better position to supply Cement, to India through Wagah-Atari border and the local cement companies would reap the benefit from higher exports since having excess production capacity. Pioneer and Maple Leaf Cement being closest to the Wagah border is expected to benefit the most from an increase in cement exports to India.

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