April 19, 2007	Thursday	Rabi-us-Sani 01, 1428

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LAHORE, April 18: Pakistan showed reluctance in granting the Most-Favoured-Nation (MFN) status to India on grounds that India had a highly restrictive regime, former diplomat Aziz Ahmad Khan told a function on Wednesday.

Trade between the two countries had reached $1 billion in three years, and it had a potential to touch $5 billion per year, said former high commissioner to India Mr Khan. He said Islamabad was prepared to confer on India the MFN status if the other side had offered Pakistan a liberal taxation regime. Pakistan, he said, earnestly wanted the promotion of economic and trade cooperation with India because it had a huge potential in changing the destiny of the people of South Asia.

He said Indians were following a rigid approach at the ongoing composite dialogue at all the eight spheres of negotiated settlements of outstanding issues which has led the talks to deadlock.

Speaking on Pakistan-India relations at the function sponsored by the Pakistan National Forum, Mr Khan said had the Indian side shown flexibility, disputes pertaining to Siachen, Sir Creek Channel and Wuller Barrage and Tulbul Navigation Project would have been settled.

He said the deadlock was, however, no reason to be disappointed because talks were still on despite the sensitive nature of relationship between the two states and the progress made in last three years could not be called “meaningless”.

Mr Khan has been Pakistan high commissioner at New Delhi from 2003 to 2006 and in his tenure the process of composite dialogue got underway.

He admitted the United States influence sought by Pakistan worked in initiating talks after the Indo-Pak relations had touched very low ebb after the attack on the Indian parliament that brought diplomatic ties between Islamabad and New Delhi at the worst and flight, train and bus links suspended.

He said political leaders of the two countries had decided to initiate the composite dialogue identifying Kashmir, trade, terrorism, peace and security, people-to-people contacts and cultural ties areas for discussion.

Mr Khan said talks on people-to-people contacts progressed most because the civil society in both countries grabbed the opportunity to come closer.

He said the track II diplomacy, which involved political and influential people from both sides worked wonder as the number of people visiting India and Pakistan was huge.

“This shows people in the two countries want peace, improvement in trade and cultural ties and normalisation of relations so that they can meet each other and benefit from the other’s experiences,” he added.

KASHMIR: As for Kashmir, Mr Khan said a four-point proposal by President Pervez Musharraf, which included demilitarisation and joint administration of the disputed territory, was finding a place in New Delhi.

He said Pakistan had infused a new life into the settlement of the Kashmir dispute by proposing options and emphasising that Kashmiri leaders on both sides of the Line of Control should also be involved in the talks.

He said the Muzaffarabad-Srinagar bus service had not been as successful as had been expected. He said the number of passengers on the bus was negligible and if the cumbersome procedure of obtaining travel permits was made easy, the service could attract a good number of passengers.

INDIAN FILM: Mr Khan pleaded for allowing the exhibition of Indian films in Pakistan contending that such a step would go in favour of Pakistan, its film industry and artists. He said the step would help promote joint production ventures and the national cinema would be able to revive its past glory.

Mr Khan also pleaded for liberalizing visa restrictions, saying that the two countries should allow tourist visas instead of restricting visitors to certain cities.