Pakistan decision to declare India MFN state-Paradigm shift

In a widely hailed decision, the cabinet unanimously approved Most Favoured Nation status for India on Wednesday. The decision deserves unreserved commendation, and were the PPP government to consider this as one more jewel in its crown, one would not grudge it. Business communities in both countries have welcomed the move. It is clearly a win-win move, which should have come years ago, especially in view of the fact that India granted this status to Pakistan 15 years ago. The fact that MFN is reciprocal in nature, i.e. trade privileges granted by one party extend to a reciprocating party, has meant that by not granting this status to India earlier, Pakistan has been hurting its own potential for export to India all these years. Meanwhile, India has come across as the more pragmatic country. Pakistani businessmen admit to having eyed Indian markets for a long time, especially given the plummeting purchasing power of consumers at home. MFN status for India should prove to be a sorely needed boost for local industry. Currently, official trade between the two countries stands at a paltry $2.7 billion, a fraction of the potential that may be assessed by contrasting this with last year’s Pak-China bilateral trade of $ 9 billion.
Today, the level of trade between neighbours Afghanistan, Pakistan and India is amongst the lowest level of regional trade anywhere in the world. No doubt, this bleak state of affairs is a legacy of the historic enmity between Pakistan and India, and the 30 year war in Afghanistan. In a larger context, the granting of MFN status to India is one of the crucial steps forward towards expanding regional trade and connectivity and placing Pakistan at the centre of it. Without the creation of positive ties with our immediate neighbours, such an outcome would be impossible. Opening up of trade and liberalisation of visas between Pakistan and India, especially for the business and tourism industries, lays the foundations for Pakistan serving as a strategic link on the new Silk Route from Central Asia through to India, with Pakistan benefitting not only from direct trading, but also transit fees.
It is a relief that at least one of the two players perceived to be against normalisation of ties with India is now on board. The Pakistan Army, which has traditionally held the reins of foreign as well as security policies of the country even during ‘democratic’ times, backs the move. The other, the religious lobby, remains obstinately opposed. Religio-political parties have once again raised the Kashmir issue, denouncing the MFN decision as hurting the Kashmiris’ cause. One might ask them how much help fighting wars, creating movement barriers and blocking trade has been to that cause in the last 64 years. They must give peace a chance now, and understand that interdependence of trade and the economy is key to regional peace and prosperity. Bilateral trade or a lack thereof, never has, and never will be an agency to Kashmiri freedom. As for the PML-N voicing its opposition to MFN status for India, the less said the better. It smacks of opposition for the sake of opposition. At least the party should have found a better reason for raising objections than ‘not being consulted’. It would be better for PML-N to realise that such statements only serve to strengthen perceptions of its increasing political isolation and consequent desperation. Such ill advised and ill timed statements could also potentially distill an impression of PML-N favouring politicking over national interest at a critical juncture in Pakistan’s history.
One would hope for this move to prove itself as the first step in a paradigm shift towards a relationship of mutual benefit to both India and Pakistan, and help to dull the bitterness of having fought three wars that benefited neither country’s economy or people.