Last week, Pakistani Foreign Minister Hira Rabbani Khar announced that her country was finally considering granting India Most Favoured Nation (MFN) status. It has already raised a chorus of objections from some quarters of Pakistan's business and commercial communities, which fear that Indian goods might flood their markets and eat into their markets. The pharmaceutical manufacturers, in particular, have expressed their grave reservations about allowing highly successful Indian companies into Pakistan.
Consequently, it’s far from clear when this long-denied status will finally be offered to India. However, were it to come to fruition, trade between the two fractious neighbours would expand dramatically from the current paltry $2.7 billion (with about an equal amount transacted through illegal channels).
The benefits to both countries and especially to Pakistan, of a freer trade regime are apparent. However, it’s intriguing to consider the timing of Khar's announcement. It comes barely weeks after India and Afghanistan signed an agreement that promises to bolster strategic cooperation. Pakistan, which had been hoping to play a major and influential role in shaping Afghanistan's future as the United States starts to draw down its forces, now suddenly fears that India might be in a position to significantly expand its presence in Afghanistan. Accordingly, the Pakistani foreign and security policy establishments probably deemed it politic to make a nod toward India. Even while making this conciliatory gesture, Khar still felt compelled to harp on an age-old Pakistani shibboleth, namely that the Kashmir dispute needs to be resolved through a free and fair plebiscite.
Given the deep distrust of India that pervades much of Pakistan, the initial hostility of some quarters of its business community and the unwillingness of the military to adopt a more pragmatic stance on the Kashmir dispute, one is forced to wonder if the granting of the MFN status to India will help contribute to a more relaxed milieu in the subcontinent. That said, it will bear watching when this first step toward a slightly more cordial relationship actually transpires.
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Bharateeya
Glad that such a move is being contemplated by the Pakistanis. But Anti-India sentiments, often openly encouraged by their media & Govts, is so high that I was expecting them to come up with a new designation to India: LEAST FAVORED NATION! :)
Mohi
lol, funny when you say that – when countless Indian movies share the same feeling : ) .
Indian
lol, funny when you say- and Pakistanis watch such Indian movies too :P
observer925
I really doubt if much would come out of this apparent detente. Pakistan being busy lately with its western border and the US anger at its duplicity in Afghan affairs, it is just trying to soften its eastern border as a tactical move until it gets a handle on the western front.
Pakistan military would never allow normalization with India as it would raise serious question about its appropriation of Pakistani budget and the military brass lavish lifestyle at the expense of the common citizens of the country. Pakistani military will protect its power and privileges and India is too convenient scapegoat to that end.
A K SAXENA (A retired civil servant)
India getting the MFN status from Pakistan!Incredible.One wonders whether Hina Rabbani Foreign Minister made the juicy statement with the prior approval of General Kayani who is the real power behind the facade of “democratically elected” Government of Pakistan. The initiative has to come from Pakistan.Let them take follow up measures for mutual benefit with their sub-continental cousin ie India.
A K SAXENA ( A retired civil servant)
Shah
They are wasting their time. Nothing has worked in the past. Nothing is working now and nothing will work in the future. These are exercises in futility.
Pakistanis are better Political chess players than Indians.