Emergency Shadows Indo-Pak Business

Imposition of emergency in Pakistan has dealt a severe blow to its economic relations with India as businessmen from the two countries have stopped booking fresh orders.

As an immediate fallout, a business delegation from the Federation of Pakistan Chambers of Commerce, which was scheduled to visit India from November 13, has cancelled its programme.

After a series of talks between Commerce Secretaries of the two countries, India and Pakistan had recently allowed resumption of trade through land route. Besides, Pakistan had also agreed to allow trade through the line of control in Jammu and Kashmir.Though the business volume at $1.6 billion had remained low, the two neighbours recently started trade in items like cement, coal, potatoes, onions.

Aiming to achieve a trade target of $10 billion by 2010, the two countries had recently agreed to expand their basket to include items like cement and tea. Former President of the Federation of Indian Export Organisations (FIEO) O P Garg, who exports carpets to Pakistan, said that his counterparts across the border were worried. He said fresh orders have stopped.