South Asian Business news and information

and have started a 3 day long trade talk in the Pakistani capital, Islamabad from today (27 march 2006).  Indian  Commerce Secretary SM Menon and his counterpart Syed Asif Shah are leading their respective countries. India is seeking two things from Pakistan:

 1. Pakistan allows transit to export Indian goods to the Middle and Central Asian countries.

 2. Pakistan considers India as the Most Favored Nation, (MFN) in economic affairs.

 I informed yesterday that India is going to have a FTA with GCC countries soon. If can get land transit from then Indian companies will be able to send goods quickly to the Middle East market. Central Asia is also a growing market for Indian goods.

 On the other hand, Pakistan is an attractive market for Indian companies and Pakistani economy is doing well these days. So getting MFN status from will make it easier for Indian companies to export there. Indian team in the trade talk is arguing that SAFTA has been ratified by all the member countries and that is why a close trade relationship is its logical consequence. 

India is also asking Pakistan to consider importing tea and services medical, construction and tourism sectors from India.

 Do you think the Indian expectations are logical? Should Pakistan agree?