Welcome FEVICOL .

Its an Indian product which has made it’s appearance recently on some shops in the city, clearly smuggled or brought via Dubai to Karachi and yes we warmly welcome it all in the sprite of friendship and peace.

I hope the governments of both India and Pakistan soon workout their differences to allow trade between both the countries, which will indeed benefit the common people on both sides of the border.

10 Comments so far

  1. verysmart (unregistered) on November 13th, 2006 @ 9:54 am

    hmm.. well the thought is good, but unless we have the pakistani products flowing in India with the same frequency, atleast I wont be all that enthusiastic.

    When business is one way between any two geographically related countries, the lesser partner always always loose out heavily, the reason being the least costs of trade makes it feasible for the exporting country to even undersell and wipeout competion both locally and internationally.

    Now consider the consequences, lets say Indian products sweep the PAkistani markets, the international companies who are looking to establish a manufacturing unit in the region will select india to establish their businesses rather than pakistan, coz on the basis of economies of scale and least cost of exports will make India the better choice rather than putting a factory or an office in Pakistan!

    Now check for yourself, choose the top 100 most famous global brands and chalk out the percentage of their manufacturing/business units presence in India and Pakistan. The results will convince you all.

    Yes the business can bring the two nations more closer, but the modern international business is the tried and tested way of warfare.

    How many Pakistani products are agreed by Indian government to be made available in Indian markets? I dont think we can name any.

    I think we all shall try to buy Pakistani products when we have the choice between Indian and Pakistani.

    Lets not go blindly too far in search of friendship before ensuring a similar attitude from the other party.

  2. Adnan V (unregistered) on November 13th, 2006 @ 10:53 am

    @verysmart: very well said …. we already have a huge trade deficit !!!

  3. Jamash (unregistered) on November 13th, 2006 @ 11:49 am

    1) There are several Pakistani products available in India “Tibaat Snow” is just one of them.

    2) The Trade between India and Pakistan is currently going on via Dubai, as a result Both India and Pakistan are loosing revenues, and the trade is limited to business tycoons like TATA and Lackson

    3) If we are worried about markets flooded with foreign commodities then we shall stop trading with China as well.

  4. verysmart (unregistered) on November 13th, 2006 @ 12:33 pm

    1) Tibet Snow is a laughing matter of a product, and hence a very bad example. Once you start counting the Indian Products in Pakistan, the amount is threating. From food stuff (meat, sugar, onion, Pan, Tobacco, Tea etc.) to textile products such as fiber to telecom items (fiber optics) and the list just goes on…. The deficit is huge and India benefits from it.

    2) All trade is not via Dubai. three categories of things; a) technology equipment b) any sort of defence deals c) items which are also manufactured in Pakistan … comes through Dubai route, and is restamped in dubai in the name of a proxy dubai organization. If you recall we have already allowed direct trade from India in many categories.

    3) China and Pakistan have no parity in terms of trade and hence shall not be compared, its like Maxico comparing its trade options against USA. so thats a non valid point..china assumed the open market policy in 1978 and has lead the market since then… most multinationals hav already established their units in China by early 1986.. Phillips is the biggest example.
    Most multinationals do not consider China in the same region with India-Pakistan-Nepal-Srilanka-bangladesh-Afghanistan, china is considered in East Asia and usually all mutinationals establish their offices seperately for china to serve HK, Taiwan, South Korea, Japan and other coutnries in South East Asia Region. however when they are looking to establish a office in South Asia region, the usuall competition is among Indo-Pak and very recently bangladesh.

    4) India opened its market post 1992 elections. and Pakistan was declared open at the same time. so the case of India having any HEAD START is ruled out. and hence we can assume that even till today there are a lot of opportunities for Pakistan to establish its businesses against their Indian Counter parts.

    5) The GDP per capita of Pakistanis is still higher than the GDP per capita of Indians, so if we sustain a trade deficit against India, it results in our money funneling to Indian masses which in turn will destroy our own industries and when the industrial processs will slow down the jobs will disappear, the GDP per capita of Pakistan will be lowered and we will become a unimportant country for any investment by the multinationals.


  5. Arsalaan Haleem (unregistered) on November 13th, 2006 @ 5:58 pm

    @ VerySmart – You indeed have the knowledge. I am impressed.

  6. ash (unregistered) on November 13th, 2006 @ 10:49 pm

    very smart
    there is some truth to what you have said but if what you said was all true noone would ever outsource or import.
    The truth is people have 3 choices, buy local do without or buy from abroad. You mentioned finances improving if a country only uses internal goods but thats half the story. Generally what that means for an individual, in this example where there is no local superglue that means either buying an over priced item (from somewhere else) or doing without.
    India used to make all its own cars based on your theory. That is the strongest argument for your case (b/c glue costs peanuts compared to cars) but now even india imports cars b/c in real life people wants their money to mean something. If you are a millionare but you cant buy what you want with your money it takes away your incentive to earn.
    Remember almost every society’s economy depends on peoples desire to earn and spend – and that money circulates. Even in pakistan we dont need more money – we need money to circulate!
    If a shopkeeper sells indian stuff some money goes to india but the pakistani guy keeps the over head.
    So while its good to buy local its not always harmful to buy foreign

  7. Jamash (unregistered) on November 14th, 2006 @ 6:54 am

    The rate of growth of the pharmaceutical industry in Pakistan is in the region of 10 – 15 %, the growing industry in Pakistan,

    Now the cost difference between pharmaceutical machineries from the west and from china is in the ratio of 5:1. The Indian machinery cost’s slightly then that of china but are better in performance because India has collaborated with west to upgrade their technology . The Indian machinery costs a fraction of a similar machine from the west and functions equally well .

    Although imports of pharmaceutical manufacturing machinery from India is banned a sophisticated channel from a third country is has been developed. The machines and it’s documentations bare no Indian labels.

    A single Injection / ampoule from India via third country costs about $230,000 while a comparable line from the west will cost about a million dollars. One manufacturer in Karachi has five such equipment Bought from India and 2 more are under shipment under a third country.

    India has a very large pharmaceutical raw material industry and supplies raw material to many countries in the west, these raw materials are of international quality and 15 – 20% less in price.

  8. Umer Zaman (unregistered) on November 14th, 2006 @ 2:51 pm

    niceeeeeeeee !!!

  9. verysmart (unregistered) on November 15th, 2006 @ 9:47 am

    No one is looking at the wholistic view.. the examples given are usually picturing a couple of industries.

    If we continue to buy Indian, we are just helping them more to create the economic gap betweeen us and them.

    By having trade brarriers all governments try to establish businesses in thier own countries even the Europeans… if anyone heard about the trade quotas imposed on china and anti-dumping laws.
    and theres nothign wrong in that…

    What will be wrong .. is the money spent by you and me on an Indian product, ending up as a bullet in one of our soldier’s heart in Siachen… (for instance, the indian group ambani brothers are a big defence equipment importers and manufacturers)

    Please refer to any good book written on the topic of International business, text books will also help you guys understand the modus operandi of the issue. I think one was written by william J hunt by the name International Business, do check it out.

  10. Abdul Sami (unregistered) on November 15th, 2006 @ 1:04 pm

    What will be wrong .. is the money spent by you and me on an Indian product, ending up as a bullet in one of our soldier’s heart in Siachen… (for instance, the indian group ambani brothers are a big defence equipment importers and manufacturers)

    Will you please stop using all American products because they are ending up as bullets against your own men in Bajaur, against innocent people in Iraq and Afghanistan?

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