Duty-free import of 5 items from India in jeopardy
By Mubarak Zeb Khan
ISLAMABAD, June 13: The Indian government has linked the export of five essential items to Pakistan with a condition of permanent bilateral trade through land route.
Well-placed sources told Dawn on Monday, that New Delhi has also demanded from Islamabad an assurance in black and white that bilateral trade through land route would not be a one-time operation.
The Indian government has informally conveyed their reservations to Pakistan through diplomatic channel, the sources said and added, they would not permit export of the five items through land route until an agreement could reach in this regard.
Pakistan had announced on May 5, 2005 to allow duty free import of five essential commodities—meat, live animal, onion, tomatoes and garlic — particularly from India through land route to offset the rise in the prices of these commodities in the domestic market.
The private sector has yet to start import of live animal or halal meat or other products from India, the sources said and added the Indian government has reportedly forbidden exporters from exporting these commodities to Pakistan.
“The Indian government has been demanding permanent opening of trade through land route—Wagha border — since long”, the sources said.
On the other hand, following the announcement of the government to allow duty free import of meat and live animals, the price of meat both beef and mutton increased by around Rs10 per kg in local market.
The average price of high quality beef in New Delhi is at Rs76 per kg while good quality mutton is selling at Rs197 per kg. While in Pakistan beef is sold at Rs110 per kg with bone and Rs230 per kg of mutton.
According to the sources, the Indian government was also looking for some preferential trade agreement (PTA) with Pakistan by including these products and some other products particularly the pharmaceutical products to be exported to Pakistan.
Second, they wanted permanent opening of trade with Pakistan through land route, which they demanded to be further used for transportation of their goods meant for Afghanistan and Central Asian Republics (CARs).
The Pakistan government has given the contract of three quarantine houses at Wagha border to the private sector.
