F.P. Report
KARACHI: Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Wednesday said trade with India will reduce inflation in Pakistan. Direct import of raw material and other inputs will also reduce the cost of production and boost exports, he said.
Mian Zahid Hussain said that the most effective way to provide relief to the people by reducing inflation is not a controversial and impractical package but restoration of trade relations with India.
Talking to the business community, the veteran business leader said that it has been decided to give priority to economics over politics but restoring trade relations with the neighbouring country whose economy is double than Russia remain hostage to politics.
He said that some trade with India is taking place through the UAE, but it increases the prices and makes production and exports more expensive.
Realizing the situation, trade should be opened with India so that the cost of production and inflation in the country can be reduced. Mian Zahid Hussain said that cotton production has been reduced to eight million bales due to continuous rains and other issues and to make up for the shortfall, cotton is imported from countries like the USA and Brazil which cost billions of dollars, but the neighbouring country is ignored.
This year the production of tomatoes in the country is likely to exceed the average of 5 million tons to 9 million tons, which will cause a market crash and farmers will be ruined.
In many places, farmers will prefer to plough the crop instead of selling tomatoes, which will have devastating economic consequences for them. On the other hand, tomato production in India is much less than expected, and it needs this vegetable, so Pakistan should send surplus produce to India to earn foreign exchange and save local farmers by balancing the prices in the local market.
Date farmers in Sindh are already facing severe difficulties due to the suspension of trade, which should be given relief.
Mian Zahid Hussain further said that India imports $400 billion worth of goods annually which includes some of Pakistan’s imports through the UAE and all its benefits go to the third country.
If Pakistan can get a 2% share in Indian imports, it will be 8 billion dollars, but this opportunity is constantly being ignored for the sake of politics.
