Pakistan presses India for removal of trade barriers
By Ihtasham ul Haque
ISLAMABAD, June 18: Pakistan has urged India to remove tariff and non-tariff barriers to enhance trade ties between the two countries. Official sources told Dawn that once again India had been asked to extend an even playing field to the Pakistani businessmen.
A number of tariff and non-tariff barriers, sources said, had been identified between the two countries, with New Delhi making promises to remove major complaints of the Pakistani exporters and importers and other businessmen.
“The first stage was to identify these barriers and now when they have been identified, we don’t know why India is still reluctant to do the needful,” said a senior official of the ministry of finance.
Pakistan, he said, was a more open and unrestrained economy compared to India where a number of restrictions still existed.
He said a joint committee had held detailed discussions to promote increased trade and now the ball was in the Indian court to ensure level playing field. As far as Pakistan was concerned, the official said, enough had been done to the satisfaction of India and their businessmen.
Pakistan, he said, had introduced a zero-rated export regime and offered a number of facilities to its importers, aiming at promoting trade relations with outside the world, especially with neighbours, including India.
He said livestock sector had been opened to India and now the Indians exporters could greatly benefit by exporting their products to Pakistan.
The official said quarantine station had been established at the borders to ensure the import of healthy livestock products, especially meat from India. Similarly, he said that different kinds of raw materials had also been allowed to be imported duty-free from India.
“We took a strategic decision to promote trade relations with India,” he said, adding that Pakistani businessmen were now looking towards the Indian government to reciprocate by removing tariff and non-tariff barriers.
With the composite dialogue going forward, the official said, the Indian government should also fulfil its promises to ensure formal trade. It would help eliminate unofficial trade.
He said smuggling had to be eliminated by encouraging fair trade and by doing away with tariff and non-tariff barriers.
According to some reports, the ministry of commerce was not consulted by the Economic Coordination Committed (ECC) of the cabinet to allow duty-free import of five major food items from India.
The government had decided to allow the import of some essential food items from India to check inflation, specially the food inflation, which has reached to over 12 per cent.
“This decision had some good effects as the prices of essential items have started declining in the country,” another source claimed. He, however, did not like to comment on the issue of the consultation.
