South Asian Business news and information

Some economic managers in Pakistan feel that Pakistan should grant India MFN (most favored nation) status. It will increase economic activities between the two countries. However, Pakistani government has refused to grant MFN status to India despite repeated calls from Indian officials. Now, some Pakistani managers feel that if Paksitan does not act decisively now then the country would suffer in near future.

DNA India reported:

According to sources in the ministry of trade and commerce, the setting up of a regional trading bloc by India to enhance economic, trade and investment cooperation among seven Asian countries minus Pakistan has greatly perturbed the economic managers in Islamabad.

Pakistan maintains that it has been left out of the regional trading block — BIMSTEC (Bay of Bengal Initiative for Multi Secotral, Technical and Economic Cooperation) — as a reaction to Islamabad’s persistent refusal to allow trade with India under the SAFTA (South Asia free trade agreement).

Sources said the trade and commerce ministry is in favour of granting MFN status to India given the fact that New Delhi had already conferred the same status on Islamabad unilaterally many years ago.

This is certainly not good news for the Pakistani decision makers. Being isolated is not a good thing to do in this age of globalization and regional cooperation. Pakistan cannot surely be a member of BIMSTEC as it is not situated beside Bay of Bengal. On the other hand, Pakistan does not have very good relationship with its other neighbors except China.