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ISLAMABAD: In what appears to be a step towards enhancement of trade with India, three agreements will be signed during Indian Commerce Minister Anand Sharma’s three-day visit to Pakistan beginning on Monday.
A customs cooperation agreement will be signed to avoid arbitrary stoppage of goods at each other’s ports, another for acceptance of certificates of internationally accredited laboratories and the third one for removal of grievances in case of any disagreement.
A senior commerce ministry official told Dawn on Sunday that the agreements would be signed on Wednesday.
Mr Sharma’s visit will mark the first visit by an Indian commerce minister to Pakistan. Top Indian businessmen and over 150 entrepreneurs and exhibitors will accompany the minister, who during his stay will also call on President Asif Zardari and Prime Minister Yousuf Raza Gilani.
On Tuesday, Mr Sharma will meet the business community in Karachi and visit an ‘India Show’ in Lahore. A one-time import of Indian goods, which are not on the positive list, has been allowed for the three-day show ending on Feb 13.The issue of multiple entry visa for businesspeople of both countries will come under discussion during the Indian minister’s visit.
Pakistan has already decided to increase the number of importable items from India and will allow only a limited number of products on the negative list. Currently, only 2,000 items on the positive list are allowed for trade with India.
A source in the commerce ministry said the new negative list was expected to be approved by the cabinet on Tuesday.
According to a diplomatic source, the Indian government hopes that a trade regime explaining the negative list will be announced during Mr Sharma’s visit.
The commerce ministry official said the new regime would help enhance economic engagement between the two countries.
Pakistan wants unhindered export of its products, mainly cotton yarn, fabrics, towels, leather items, surgical and sports goods, fruit, vegetables and pulses.
India seeks market access to its products in the field of Information Technology, engineering goods, pharmaceutical products, entertainment-related items, auto parts, steel goods and cosmetics.
AFP adds: Addressing a press conference in New Delhi, Mr Sharma said India was committed to removing barriers that restricted trade with Pakistan.
“We want to build bridges of confidence and trust which is imperative to promote two-way trade between the two countries,” he said.
An array of legal and regulatory barriers has restricted official exchanges to $2.7 billion but Mr Sharma said he was hopeful the sum would jump in the coming years.
“We hope to double this figure in a three-year period. Once direct trade through (the) land route is facilitated, there will be a manifold increase,” he said.
Deepening economic engagement between the two countries is seen as crucial to establishing lasting peace in the troubled region.
In 1996, India granted Pakistan ‘most preferred nation’ status which is intended to remove discriminatory higher pricing and duty tariffs.Pakistan agreed in principle to grant a similar status to India last year, paving the way for a radical re-organisation of trade.
At present, Pakistan maintains a list of 1,945 items allowed to run from India to Pakistan – but only 108 can be transported directly by road through Wagah.
Major items of export from India to Pakistan are sugar, cotton, man-made filaments and chemicals, while its top imports from Pakistan include fruit, mineral fuels, and organic chemicals.
Mr Sharma said Pakistan had shown the willingness to move “towards a regime which deepens and diversifies our trade”, and India, on its part, was working towards visa reforms.
