Pakistan Prohibits all Imports from India, Equates
Indian Origin Goods with those of Israel
Rs 17930 cr
worth of Goods in Annual Export and Import Trade Affected by Bans between the
Two Neighbours in Last five Months
ABS
News Service
New
Delhi, 10 August, 2019. The
Director General (Trade Policy) of Pakistan Ministry of Trade and Commerce
Issued an Order on 9 august to prohibit all imports
from India into Pakistan on 9 August. With this, all imports including goods in
transit have come to a halt. Included in the ban is trade through the open
Wagah land route border with Pak. The appendix covering some 118 items in
Appendix G of Pakistan Import Policy Order 2016 have been
deleted.
The Pak 9 August Order
covers ‘Goods of Indian or Israeli origin or imported from India or Israel”.
This means that apart from Israeli goods, which were originally banned, India
too is placed in the same league as Jewish Israel which
is definite No No in Muslim countries.
The order is clear
that even exports through third country routes like Dubai are
technically prohibited. All Indian origin goods are banned whether from
Indian or non Indian ports.
Further, even transit goods from neighbouring countries of India like
Bangladesh and Nepal are covered in the ban which
specifies “all imports from India”.
It may
be recalled that following the Phulwama
explosive attack, India imposed a stiff duty of 200 percent on all imports from
Pakistan by a notification issued on 16 February. This had the effect of
cutting imports from Pak to a mere Rs 50 crores in
the April to May period of this financial year as compared to Rs 850 crores in the previous year quarter. Supplies of
essential items like Rock salt, chemicals, furnace oil, textiles and dry fruit
in transit trade form Afghanistan dried up. Now Rs
14,460 crs will fall to zero as Pakistan has imposed
the ban through a non tariff
barrier.
Arun Goyal, the Director of the Think Tank Academy of Business Studies in the Capital and author of a three volume treatise on import export called upon both
India and Pakistan to desist from fighting a war through trade. Self goals by both countries will
affect both countries, specially Pakistan which depends upon low cost essential
supplies like spices, tea, fuel, petrochemicals and machinery. India too loses
access to key supplies like energy supplies from Central Asia. The neighbouring
countries of SAARC Afghanistan, Nepal, Bhutan which
are landlocked lose out on trade with the closing up of land and air trade
corridors on the India Pak border.
He also said that WTO
should intervene as both tariff and import prohibitions violate WTO rules which designed to protect and promote trade. Both
government should restore normalcy of the suspensions at the earliest and stop
the diversion of trade to competing countries like china and South East Asia which are the beneficiaries of the trade suspensions.