ISLAMABAD, Sept 13: After a gap of two years that saw the suspension of trade relations with India, Pakistan has unilaterally decided to take a lead by enhancing import of products from India --- a decision likely to facilitate dialogue on economic and political issues between the two countries.

This is the second attempt by Pakistan to enhance tradable imports from India in the past seven months. In February, the commerce ministry had allowed import of eight items from India, but the Indian government did not reciprocate by committing any specific deadline for reducing non-tariff barriers on imports from Pakistan.

A source told Dawn on Tuesday that the commerce ministry had approved a list of more than 18 items. This list, according to the source, would be sent to the Economic Coordination Committee of the Cabinet for approval.

After approval from the ECC, the items will be added to the list of tradable items from India. The list was formulated in consultation with the ministry of industries and production, the source said.

The prime minister, the source said, had approved the list and it included mostly machinery and raw material for industries.

However, for the first time, the government has also allowed import of printed books of all kind and newsprint from India. The newsprint import was already permissible from India, but it was proposed to be allowed via land route to reduce its cost for importers.

The approved import list includes empty aluminium alloy milk cans, accessories for leather bags and footwear, jigs and dyes for vehicles, polymers, LUFENURON Chemical for pharmacy sector, cotton linter, fungicides for leather industry and other chemicals (Ucer G-50) for leather industry.

At the same time, import of textile spinning machines, cone/bobbin winding machines, reeling machines, power looms, sewing, darning or embroidery needles, fly ash for cement industry only, thermo plastic rubber sole, traction motors and their spares, printed books of all kinds and plastic strip (a rust-proof plastic packing material).

The ministry of commerce also got approval from the prime minister for land route import of the following items from India: Polypropylene, polyethylene, pure PTA, frozen vegetables and newsprint.

At present only raw material’s import is allowed from India under temporary importation scheme for manufacturers of export items. The ministry of commerce has, however, got approval from the prime minister to allow import of accessories for export-oriented textile/leather sectors like button, zipper, hangers etc. However, the source said the ministry of commerce will notify the list of these accessories.

From 1979 to 1986, Pakistan added 42 items to tradable list with India; 249 items in 1988-89; 328 in 1989-2000; 14 in 1998-99; six in 2000-01; 10 in 2001-02; 78 in 2002-03; 80 in 2004-05 and 438 in 2008. In 2011, Islamabad added more than 26 items to the list.

Now in 2011, 1,964 items can be imported from India.

In April, Pakistan had agreed with India to change its decades-old trade system from a restricted regime to an open one (Granting Most Favoured Nation’s status to India) but conditioned it with removal of non-tariff barriers by the Indian government.

It is expected that the MFN status to India may be considered in October, 2011 with some reports suggesting that bilateral trade between the two countries could go up to $6.5 billion from the present less than $2 billion.