13 August 2004	Friday	26 Jamadi-us-Saani 1425

Please Visit our Sponsor (Ads open in separate window)

ISLAMABAD, Aug 12: Two-day talks between Pakistan and India on economic and commercial cooperation concluded here on Thursday with both sides agreeing to consider proposals put forward during the meeting with sincerity and seriousness.

Official sources told Dawn that both sides discussed a wide range of proposals on promotion of bilateral trade. They agreed to take up the proposals in the next round of talks.

The Indian delegation left for Lahore in the morning to meet officials of the Lahore Chambers of Commerce and Industry. The sources said the most-favoured nation (MFN) status could not be accorded to India unless all outstanding issues between the two countries were sorted out.

The trade talks were part of the composite dialogue process under which issues of Kashmir, Wullar Barrage, Siachen, the maritime dispute of Sir Creek, terrorism and drug trafficking are to be discussed.

In reply to a question, the officials said both sides showed flexible attitude during deliberations. They said proposals the put forward during the meeting would be discussed with quarters concerned to seek their opinion before holding further discussions in the next meeting.

Sources said India wanted Pakistan to accord it the MFN status and give it transit facility to export goods to Afghanistan and Central Asian Republics through Wagah.

It may be noted that India is already exporting its products at cheap rates to Afghanistan and Central Asia through Iran. This has created an uneven competition for Pakistani products in those countries.

According to the officials, due to non-tariff barriers and high-duty structure as well as export subsidies and domestic support in India, it was not possible for Pakistani products to enter the Indian market.

Responding to a question, the officials said: "Talks need patience, issues cannot be sorted out in days. It is not possible to reach an agreement in the first meeting." They said the meeting provided a chance to discuss bilateral trade-related issues.

"The talks will continue. The issues raised during the talks require detailed analysis and study," they added. "The most important thing should be to protect the interest of the state, not of the government," the officials said.

Meanwhile, a press statement issued by the foreign office after the conclusion of talks which said: "The discussions were held in a frank and cordial atmosphere. Wide-ranging proposals were made on various aspects of economic and commercial cooperation. These would be considered further."

AFP ADDS: Commerce Secretary Tasneem Noorani, who led the Pakistani delegation, said information about the trade regime between the two countries had become 'obsolete'.

"We told the Indian delegation that we would like to update the information regarding the trade regime and Pakistan would send its business delegation to study the situation in this regard," Mr Noorani said.

India had already granted Pakistan MFN status, but Mr Noorani said despite this exports from Pakistan to India remained too low - around one-fifth of what Pakistan imported from India.

"We want to study the causes." The two sides agreed to continue the discussions. Discussions during the opening session on Wednesday focussed on removal of tariff and non-tariff barriers.

They also discussed a proposed $3.5 billion gas pipeline Iran wants to build for India via Pakistani territory. In New Delhi, an Indian government source said the Indian proposals included Pakistan granting MFN status to India.

New Delhi also suggested opening the Wagah-Atari border for trade and greater interaction among the business communities to establish joint ventures in identified areas.

It was also suggested that India and Pakistan amend a 1974 protocol on shipping to allow ships with third country flags to carry India- and Pakistan-bound cargo from each other's ports.

India offered to supply diesel to Pakistan, exchange experience acquired in compressed natural gas technology and urged Pakistan to allow Indian companies to explore for oil in offshore and onshore ventures there, Indian sources said.

Please Visit our Sponsor (Ads open in separate window)