KCCI, SGCCI sign MoU to strengthen cooperation

02 Dec '13

2 min read

The Karachi Chamber of Commerce and Industry (KCCI) and the Southern Gujarat Chamber of Commerce and Industry (SGCCI) have signed a memorandum of understanding (MoU) for strengthening cooperation between the two chambers.

The MoU was signed at the 2nd Regional Chambers of Commerce Roundtable on ‘Normalizing India-Pakistan Trade’, organized by the Federation of Pakistan Chamber of Commerce and Industry (FPCCI), in association with the Institute of Business Administration (IBA) and the Indian Council for Research on International Economic Relations (ICRIER).

At the signing ceremony, SGCCI president Kamlesh Yagnik said it is possible to increase bilateral trade volume between India and Pakistan from the current US$ 2 billion to US$ 25 billion over the next 10 years, through collective efforts of Governments and business communities of both the countries.

According to Mr. Yagnik, trade between Indian and Pakistan is currently carried out through three routes—direct, circular and informal. While the direct trade is carried out through legal channels, circular trade involves importing products of the other country via a third country.

However, a huge amount of trade between India and Pakistan is currently carried out through informal route, which requires serious attention from both Governments as it affects those who trade through the direct route by paying all taxes, he said.

Mr. Yagnik assured KCCI representatives that SGCCI would prepare an elaborate report on the problems faced by Pakistani businessmen and exporters and forward the same to the Indian Government for a review.

He suggested that both Indian and Pakistani Governments should sign a currency swap agreement, as it would prove favourable compared to the existing trading in US dollars.

KCCI representatives said enhance trade and business relations with India will result in further improvement in the quality of Pakistani products. Moreover, Pakistani items could get an opportunity for greater penetration in the Indian market of 1.3 billion people.

Last year, Pakistan became the leading market for Indian synthetic and rayon fabrics and filament yarn, surpassing the US and Saudi Arabia. In 2012-13, India’s man-made fabric and yarn export to Pakistan surged by 25 percent year-on-year to Rs. 210 million.

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