To revive the domestic industry, the Federation of Punjab Small Industries Association (FOSPIA) has called on Members of Parliament from Punjab to seek the Centre’s intervention in signing a free trade agreement (FTA) with Pakistan. The association has written to all Lok Sabha members from Punjab, urging them to advocate for an FTA with Pakistan to prevent the destruction of local industries.
FOSPIA emphasized that local businesses could leverage Pakistan as a gateway for exporting to other countries such as Russia, Europe, and Arab nations via road routes. The association pointed out that the cost of iron and other products has risen due to Punjab’s distance from ports, making the manufacturing of bicycles, sewing machines, machine tools, auto parts, and fasteners increasingly unprofitable.
Punjab’s proximity to the Pakistan border has also hindered its business opportunities, with large companies hesitant to invest in the border state. Association president Badish Jindal noted that products such as iron goods, tractors, combines, bicycles, sewing machines, medicines, hand tools, and machinery made in Punjab are in high demand in Pakistan, which could become a significant market for these industries.
Jindal highlighted that despite the Indian government’s imposition of a 200% import duty on Pakistani products in 2019 in response to the Pulwama attack, exports from India to Pakistan have increased by 96% in the past year. Major exports to Pakistan include sugar, animal feed, chemicals, tar, clothes, and medicines.
He mentioned that the situation in Pakistan has changed, with Foreign Minister Ishaq Dar, who is also a former finance minister, emphasizing the importance of India-Pakistan trade in a recent press conference. Dar highlighted the concerns of the Pakistani business community and noted that Pakistan has to import goods from India through third countries, which is very expensive. In this context, Jindal urged the Indian government to sign a free trade agreement with Pakistan as soon as possible.
