Pakistan, Inc.: Indians not allowed

NEW DELHI: The ambition of Indian companies like Tatas and the Bajaj Group to to tap business opportunities in Pakistan is likely to remain a dream. Islamabad seems to be reluctant to clear investments from across the boarder.

“It is understood that Pakistan has decided not to entertain any investment plan by Indian firms,” a source in the government said.

It has been noticed that Pakistan has discouraged VSNL’s attempt to pick up an equity stake in Pakistan Telecom Company (PTCL). “Similar interests shown by companies like Bajaj Auto, Tata Motors, Tata Consultancy Services have not been moving at a satisfactory pace,” the sources said. According to Ficci sources, a number of Indian companies were interested in expanding their business activities in Pakistan.

Tatas had been exploring opportunities in the neighbouring country for their steel and auto businesses. Tata Consultancy Services was interested in setting up centres of excellence in Pakistan, while Dabur was also exploring possibilities of setting up manufacturing units in the country.

Even as Pakistan is apprehensive about the inflow of Indian investments, it is willing to resolve other business-related issues. It is expected that the issue of importing molasses from Pakistan may soon be resolved and the product could be transported by wagons instead of barrels. The two governments have in-principle agreed that infrastructure on both sides need to be developed. “The government is examining a study prepared by RITES relating to import of molasses from Pakistan,” an official source said.

RITES was assigned the task to prepare a comprehensive project report, keeping in view all aspects including security concerns and tanker-railways compatibility. In return, New Delhi is willing to part with Indian expertise in the field of the capital market.

“The Indian institutional capacity for market development and regulation can be shared with Pakistan,” the source said. The Securities and Exchange Commission of Pakistan (SECP) and Sebi would co-operate with each other in leaning institution capacity and market regulations of the two sides, it said.