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Global Round Up

  • KIPS Bureau
  • Apr, 2019
  • 299
  • National

TOP STORY: INDIA COULD BE ON A LOSING WICKET

The trade war with Islamabad could cost New Delhi $1.8 billion

A Commerce Ministry source has announced that Pakistan may even consider a complete ban on imports from India or an increase in tax and duty rates. A complete ban on Indian films and television channels is also another option.

The volume of trade between India and Pakistan is about $2.15 billion. Indian exports to Pakistan are worth $1.8 billion, while Pakistan’s exports to India are worth $350 million.

More than 40 Indian soldiers were killed in Pulwama district of the Indian-Administered Kashmir in February. New Delhi has accused terror network Jaish-e-Mohammad while Pakistan has asked India to provide any evidence to prove the claim.

In reaction to the attack, India revoked Pakistan’s Most-Favoured Nation status, which affects trade. New Delhi has also raised duties on major Pakistani products as a protest against the Pulwama attack.

Around 300 lorries carrying cement, one of Pakistan’s major exports to India, were stuck a day earlier at the Wagah border after duties were suddenly increased 200 percent. This made importing them very expensive or nearly impossible. Shipments of 170 containers by sea also came to a grinding halt.

The Indian market accounts for a quarter of Pakistan’s total cement exports. In the last financial year, Pakistan sold India $23 million worth of cement. Fruit and vegetable exporters will also bear the brunt of the reaction since they exported $41 million in production.

Economist Dr. Ashfaq Hassan Khan says Pakistan is not dependent on India as far as trade is concerned because there are no normal trade ties between the two counties. Mr. Khan also says the trade between the two countries is based on quick imports from India to bridge a gap in case there is any shortage of products like tomatoes, onions or sugar.

He then goes on to saying ‘extremist elements’ in the Indian government are fuelling anti-Pakistan sentiments in an effort to win the upcoming elections while the other reason behind this conspiracy seems to be the hearing of the case against India’s Kulbhushan Jadhav in the International Court of Justice.

Pakistan imports cotton yarn, textile, sugar, machinery and chemicals, among other items from India while India mainly imports cement, textile, leather products, vegetables and fruits from Pakistan.

But, with a strategic location along a key international trade route, India and Pakistan have some inherent advantages to make themselves a regional logistics hub. If the two countries isolate themselves from one another, their strategic significance to economies in the region, China included, will be reduced.

The current economic interaction between India and Pakistan is a hard-own achievement that should not be interrupted by a terror strike. Terrorists would be pleased to see that a trade war adds to the instability factors affecting South Asia. Should New Delhi and Islamabad fall into the trap of terrorists? The answer is no.

China is an onlooker of the ongoing India-Pakistan conflict, and it regrets the two countries’ economic losses, which could have been avoided. However, China is not just an onlooker but a participant in the South Asian economy. As an important economic partner of both India and Pakistan, China is willing to try to promote the India-Pakistan economic cooperation.

Courtesy of Samaa TV

INTERNATIONAL

TALIBAN TALKS DRAG ON

The top American envoy seeking to broker peace in Afghanistan has met one of the Taliban’s co-founders for the first time, as the latest round of talks get under way in Qatar. Special representative Zalmay Khalilzad says he has held a working lunch with Mullah Abdul Ghani Baradar before ‘moving on to talks’. Mullah Baradar was recently released from a Pakistani prison. His presence in Qatar is thought to improve the chances of a deal.

ABE BACKS BASE SHIFTING

Japanese Prime Minister Shinzo Abe has said plans to relocate an American military base on the Island of Okinawa will continue, despite a referendum rejecting the move, with some 72 percent of voters in the non-binding poll opposing the construction of a new base to replace the one at Futenma.

BAGHDAD BEAMS AT TEL AVIV

A senior Iraqi official has said his country will be interested and willing to establish relations with Israel if the Jewish state signs a peace deal with the Palestinians, though the official says Iraq will not move forward on any level without a Palestinian state.

CANBERRA CHIDED OVER AID

Aid groups have slammed Australia’s ‘bizarr...

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