Indian rice for CARs via Pakistan

FOR quite sometime it was expected that Pakistan will ultimately become a conduit for the export of Indian goods to Afghanistan and Central Asian Republics in addition to in Pakistan and that is now becoming a reality. A report in this newspaper Sunday revealed that the Indian rice exporters are eyeing export of Rice to Central Asian Republics through Pakistan to capture the vast market.

The price of Indian rice for export purposes is slightly lower than Pakistani rice because of concessions given by the government. A Pakistani rice exporter has disclosed that some visiting Indian exporters were found searching for ways to tap markets in the region and were interested to export their commodity to CARs through Pakistani land route which costs less. Though presently there is no agreement to allow the transportation of Indian goods through Pakistan to other countries but there is concern in the business community that when the MFN comes into operation, India would certainly seek this facility. Though Pakistan has delayed the grant of the MFN status to India together with the abolition of the negative list for trade due to reservations of various industries but ultimately this would be done at some point of time. Pakistani rice has superior quality and due to short distance, the country is competitive but if Indian rice export was allowed through the transit facility, Pakistani rice would lose its competitiveness. We are not against facilitating Indian goods to other countries but at the same time Pakistan will have to watch its own interests on core issues. Pakistan has suffered a lot in the past and there is consensus that national interests must be kept in view while granting MFN status and other facilities to the neighbouring country.