LAHORE: Speakers at a discussion on the pros and cons of trade with India called upon the federal government to improve trade relations with India and other regional countries while weighing up all risks and benefits.

They showed their serious concern over lack of reforms by successive Pakistani governments to enhance trade volume with India keeping in view the global market demands and competition.

The discussion was jointly organised by the Institute for Policy Reforms and the Lahore Chamber of Commerce and Industry.

Opening the debate, former commerce minister and IPR chairman Humayun Akhtar said Pakistan must weigh the risks and benefits of opening trade with India. `As normal trade with India has been under discussion for many years, rigorous assessment of cost and benefits is the only way to take a decision.

Akhtar said decision on tradewith India must harmonise among security, economic, and trade interests. Recently, IPR examined overall developments in South and Central Asia `and recognised that there were risks to our security.

Dr Manzoor Ahmad, adviser IPR and former Pakistan ambassador to the WTO, spoke largely in support of open trade and listed the speciñcrisks and beneñts of trade with India.

He said developing economies that were globally integrated experienced sustained growth. `Over 60 per cent of global trade takes place via the supply chains of multinationals who make their buying decisions in all parts of the world.

He said Pakistan`s trade policy resulted in loss in prosperity and risked further growth loss if it was lef t out from recent moves towards South Asian integration. In his view, Pakistan must find ways to build on South Asia`s dynamism.

`Past studies on Pakistan-India trade overwhelmingly showed significant economic benefits for our economy,` he said.

He wondered why Pakistandelayed normal trade relations as the government`s negative list of tariff lines since 2012 meant that substantial trade was open to begin with. Among those items still restricted and likely to face stiff competition from India, such as pharmaceuticals and auto parts, sufficient legal remedies are available to protect them.

He said some agriculture products facedunfair competition from India, but those tariff lines were already open for import. Again, Pakistan has and must exercise measures to protect its farmers.

He said: `Possible synergies fromlinkages with Indian industry far exceed the risks to some of our industry. Suzuki would not have closed its manufacturing of Alto vehicles in Pakistan, if it could access low cost Indian parts supply.

Pakistani pharmaceutical companies could become major exporters if they were to find linkages with Indian companies.

He said mostly those Indian exports presently routed through UAE would divert to Pakistan.`Some other countries that export to Pakistan may see diversion of their products to India. This will happen because of low prices, and low transport and transaction costs. This is for our benefit. There are enough ways to prevent diversion from Pakistani businesses.

Af tab Ahmad Vohra, the head of LCCI`s Pakistan-India Trade Committee, said businesses and consumers would benefit greatly by opening trade route as it would help both exports from Pakistan and imports from India.

Vohra said new security restrictions on accessing the Wagah post are a great inconvenience for passengers and traders.

Dr Hafeez Pasha, former finance minister, urged the government to give India access to those goods which Pakistan imported from other countries and India reciprocated in the same way by importing goods from Pakistan to strategically strengthen the trade relations.

Earlier, LCCI President Ijaz Mumtaz gave opening remarks to welcome the participants.