India will gain from freer mutual trade, but so will Pakistan
A paramilitary soldier stands guard as a truck crosses into Pakistan from India, at the Wagah border
It seems that the PML-N government may well be set to achieve one of its key policy goals ie bolstering trade with India. During 2013, the process of normalization was scuttled by the untoward tensions on the Line of Control (LoC) and the situation was controlled in part by the meeting of DGMOs in December 2013. That was a welcome initiative led by Nawaz Sharif himself and reportedly some quarters were not all that pleased with such a putsch from the PM’s office.
For years, the right wing and fringe extremists have abused the term Most Favoured Nation (MFN) as some kind of a ‘concession’ to India at the cost of national sovereignty. The political elites have resisted this narrative and Sharif happens to be the most consistent and clear advocate of trading with India. To bypass the constructed discourse on MFN the government is set to give India Non Discriminatory Market Access (NDMA) – on a reciprocal basis – which essentially implies sorting out some of the irrational barriers erected over the years to discourage and/or block trading with the enemy. The positive list of Pakistan comprises 8000 items, but only 1967 are importable from India while the negative list includes 1209 items. In 2012, federal cabinet approved abolishing this negative list. […]