Pakistan's decision to give India Most Favoured Nation (MFN) status is a big leap forward in bilateral relations. Paradoxically, the term of art connotes the opposite of what it means in common speech — under MFN a country agrees to treat another country equally with all the other countries with which it trades, as part of the agreement in the World Trade Organisation on non-discriminatory trade practices. As India and Pakistan are WTO members, this should have happened as a matter of course, but their uniquely poor relations ensured that even the routine was difficult. India accorded MFN to Pakistan in 1996 but Islamabad, which had linked improvement of trade ties to the resolution of the Kashmir issue, was propelled by the logic of its own position to withhold reciprocity. The change of heart now might have been prompted by a realisation in Pakistan that it can no longer afford to isolate itself from India's economic growth. As a next step, Pakistan would have to replace its positive list for trade with India with a negative list. New Delhi too has agreed to address the Pakistani grievance of Indian non-tariff barriers against its exports. But MFN status also means that Indian goods must compete in Pakistani markets with products from China or any other country, and vice versa. Both countries must now facilitate trade with each other through all possible routes, including the contentious land crossing at Wagah. They must also operationalise their part of the South Asian Free Trade Area agreement.
Prospects for improved India-Pakistan relations seem better now than at any time in the past three years. There have been some positive political developments as well: India recently backed Pakistan's entry into the United Nations Security Council; Pakistan supported another term for India's Kamlesh Sharma as the Commonwealth Secretary-General. A potential spat over the crossing of an Indian helicopter into Pakistani airspace was quickly averted — the Pakistani military sent the helicopter back after properly forcing it to land and questioning the Indian Army officers in it. There are still influential hawkish sections in both countries that stand in the way of rapprochement. The Pakistan government has drawn much criticism internally for the MFN overture to India. It can only be hoped that the forward momentum will be sustained.
Keywords: Indo-Pak trade ties, MFN status


True these fond sentiments might be shared by those PaKistanis who genuinely wish their future and welfare and apparently they dont have a voice. Expecting Pakistan to show empathy with the sufferersof 26/11 is really bit too much; but at least the likes of Rehman Malik can stop suggesting that India is hallucinating about Pak's role in the incident. An ounce concrete action in the direction of taking action against those responsible for organising the dastardly incident would go a long way in creating some degree of trust.
Enough is enough,time has come to forget the past controversies and allegations and to take some strategic and beneficial measures to be stable in socio-economic aspects and to compete to other leading nations and to fight against terrorism and increasing daily requirements. On the other side, Pakistan must also show honesty ,truthfulness and determination in his coming concerted and dedicated steps if want to see the bilateral relations for a longer period.
Finally, Pakistan's political approach changes to construct a better relation between two countries. They must realise that to own Kashmir is not the only way to proof their faith for their country people. Well, let see what more will happen in future or who will take initiative to build a strong and longer relation between India and Pakistan.
The grant of MFN status by Pakistan to India or the quick return of the Indian army helicopter that had strayed into Pakistan are doses to push us in reliving Nehru's "make believe world." The Pakistani army has a controlling say in all state matters in that country. We must be careful not to allow another 26/11 by lowering our guard!
Pakistan's civilian leadership better stop pretending as if they are in charge. The fact is they are not and any move intended to improve relationship with India is vetoed by the military leadership. India has to do her duty and put the effort in improving relation with Pakistan. But expecting anything in return, particularly from such a failing state is as good as believing in "Alice in wonderland"
Pakistan has done again a U turn as expected by many. One step forward is just to gather strength for a leap backward - has been the trend of Pakistan. Sorry state of leadership indeed.
There is tremendous potential of bilateral trade between India and Pakistan.Being neighbors and several land routes available,it' is a pity,it took so long to normalize their trading relations.According to conservative estimates,immediate potential of two way annual trade would exceed ten billion ,,dollars.Consumers in both countries will be better off.To take cue from EU countries,intra EU trade exceeds their trade with rest of the world.Normal trading relations will dismantle barriers created by mutual suspicions.
As reported by this paper elsewhere, the PM of Pakistan has denied that MFN status has been given to India. Just as I expected (see my previous post).
Pakistan's decision to give India Most Favoured Nation (MFN) status is a big leap forward in bilateral relations. This step done by Pakistan was absolutely necessary as relations will improve tremendously and ordinary Indians and Pakistanis will enjoy the good news. Improved relations are important for both nations and Pakistanis will have the possibility to buy more Indian goods.A lot happened for improved relations India recently backed Pakistan's entry into the United Nations Security Council; Pakistan supported another term for India's Kamlesh Sharma as the Commonwealth Secretary-General. Pakistan's democratic elected government shows good will and has speeded up to create a better climate between both countries. A peaceful and stable South East Asia is in the interest of all and maybe one day there could be found a solution for Kashmir.
So finally Pakistan has understood the importance improving trade ties with India or has it still not? Prime Minister of Pakistan said India has not been granted the MFN status and that 'Commerce Ministry has only been tasked to move forward on the issue in bilateral negotiations.' This is what I find most interesting about Pakistan; one India-centric decision and you've their leadership struggling to arrive at a consensus.
according to me lot of things 2 be done to trust our neighbour.first
26/11 justice must be done quickly by pak & has to bring culprits to the
book.it has to not allow its territory for terrorist as safe heaven & control terrorist groups particularly ISI.Each & every time they must
not harp on the Kashmir issue 2 justify misdeeds.They must avoid
creating confusion on important & related matters & must avoid irking.
That will create more confidence in relationship of both country.
If only Indians realized how much they've lost by forcibly holding on to J&K! What India lost, China gained (by making sizable investments in Pakistan). Pakistan imports most of what it needs from China. Had India displayed common sense and maturity in the years after Partition, the scenario would have been very different.
I think Pakistan's approval for placing India in most favored nation category should be assessed and looked from other aspects as well. What exactly MFN list mean to Pakistani Government? Is it a list of nations in which they are planning to intensify their terrorist activity?I think its a foreboding for Indian Government. Pakistan's internal criticism is a proof of that. We shouldn't be lured by this cunning and superficially friendly move.
This editorial is premature. It turns out that India has not been granted the MFB status after all; never mind the WTO or SAARC rules that Pakistan has acceded to. Obviously Pakistan does not believe in living by any rules. What we see now is the same old Pakistani grandstanding.
A loyal and honest
attitude,from both nations to
each other's matter must
prevail properly for a long
time.
It is a good step. Like many other countries in the world Pakistan has finally recognised that the real power of a country depends upon its economic strength, and not necessarily on its military might. The latter cannot be sustained without the former and this was well demonstrated when USSR fell apart. Another example is North Korea. Hopefully people in both countries, more so in Pakistan, will benefit from this step Pakistan has taken, though very belatedly. Furthermore, one hopes such steps would help in casting away mutual fears, hatred and mistrust to normalize relations between two neighbours. That said Pakistan must change its mindset and stop supporting terrorists and spewing venom and hatred against India. If that happens, Pakistan will reap heavy benefits and dividends by befriending India.
Since we were one nation just 60 years back, it makes complete sense that we start trading more among ourselves. Business climate improvement will ensure that focus is on positives and not on negatives. We need positivity in South Asia.
The grant of the MFN status to India was long overdue as India had granted that status TO Pakistan over 15 years ago. Anway, better late than never. However, this bonhomie may not last long if the powerful Pak military is not on board completely.
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