NTBs hurting cement exports to India.

Islamabad—Despite tall claims to increase bilateral trade, the government could not get non-tariff barriers removed that have been imposed by India on Pakistani products. Gate at Wahga border opened from April 13, 2012 and since then movement of trucks crossing the border has started but with certain restrictions that only 10 wheeler trucks from Pakistani side can cross the border and maximum weight shall not be more than 40 tons per truck. Due to this reason numbers of Pakistani trucks with a loading capacity of more than 80 tons are stuck up at Wahga border by the authorities thus creating hurdles in exports.

On the other hand, scanners installed at the new gate of Wahga border are not functional and creating hurdles for Pakistani exports to India. Experts says that despite all the government claims, business and trade environment at the Wahga border could not improve and Pakistani exporters are facing difficulties due to lack of facilities at the border.

Cement industry experts says that cement is one the major commodity that is abundantly available in Pakistan and can be exported to India through this land route. But, unfortunately most of the available transportation forcement has a loading capacity of more than 40 tons. They said availability of 10 wheeler trucks with a loading capacity upto 40 tons for cement is limited and this restriction will increase the transportation cost for not only cement but also for other commodities as well, resulting in the cement industry being unable to compete in India. Experts says that Indian authorities have already imposed numbers of non tariff barriers (license restriction, lack of infrastructure, etc.) due to which cement industry is unable to perform. Now, another non-tariff barrier shall not help the industry to increase its exports and earn much needed foreign exchange for the country resulting is huge balance of trade deficit in favor of India.

According to the data available on official website of cement manufacturers the cement exports to India were around 0.5 million ton during 2011-12 but sources believe that removing of hurdles and non tariff barriers will result in quantum jump and Pakistan could reach mark of 5 million tons within a year or so.

Source : pakobserver.net