India allows Pakistani industrialists to set up industries in India. This announcement was made by Indian Commerce and Industry Minister Anand Sharma. Pakistan has welcomed the idea of liberal trade. Pakistan’s Minister Makhdoom Amin Faheem has also endorsed the idea. This initiative of foreign direct investment (FDI) will certainly be packaged in a number of attractive privileges and benefits. It is beyond comprehension that whether Pakistani politicians are too naïve to understand long-term effects of such a decision. Pakistani investors have already been shifting their investments out of Pakistan owing to the ever-growing cost of doing business in Pakistan, terrorism, kidnapping for ransom, electricity shortage, increase in crime rate and a never-ending list of such snags obstructing business and economic activities. A large number of textile units have shifted to Bangladesh, and Pakistan tops the list of investors in the UAE after Iranians. India will certainly be offering lucrative incentives to Pakistani investors to establish industry in India. Such incentives will allure these investors, especially in the light of existing business impediments in Pakistan. In the long term, these industries will create job opportunities in India. On the other hand, many industrial units will be wound up and shipped to India; leaving thousands of workers jobless in Pakistan. It will give further boost to terrorism, extremism and the crime rate. Export-related production by Pakistanis in India will boost Indian trade, whereas Pakistan’s trade deficit will further go up. Thus, severe injuries will be inflicted on the already-limping economy of Pakistan.

SHAHID SALIM,

Karachi, April 20.