ISLAMABAD: Pakistan said on Thursday it would restart work on improving trade ties with India when the two countries’ foreign secretaries meet in Islamabad next month.
Pakistan had pledged to grant India “Most Favoured Nation (MFN)” status by the end of 2012, meaning Indian exports would be treated the same as those from other nations, but has so far not done so. India granted Pakistan MFN status in 1999.
“When the dialogue process resumes, we hope to build on the work already done in this regard,” Foreign Secretary Aizaz Ahmad Chaudhry told a weekly press briefing.
Foreign secretary says Pakistan hopes to improve trade ties with India
The foreign secretaries of Pakistan and India are set to meet in Islamabad on Aug 25 in the neighbouring countries’ latest attempt at improving ties.
Mr Chaudhry said there were number of issues on both sides for normalising bilateral trade which included “making sure that vulnerable sectors are protected and the issue of the non-tariff barriers in India and the issue of imbalance of trade and certain other infrastructure-related issues”.
MFN status will mean India can export 6,800 items to Pakistan, up from around 2,000 at present, and the countries aim to lift bilateral trade to $6 billion within three years, officials have said.
Trade between the two countries presently stands at around $2.5bn, with Indian exports accounting for $1.75bn, according to the Karachi Chamber of Commerce and Industry.
Foreign Secretaries of Pakistan, India to meet on Aug 25
A further $3 billion is thought to be channelled through Dubai, almost all of it in Pakistani imports, though the business community believes that if Pakistan grants India MFN status the imbalance could change.
India and Pakistan have directed their peace efforts towards “trade diplomacy” in a bid to build enough trust to tackle other thorny issues, Kashmir dispute.
In August 2012, India lifted a ban on foreign investment from Pakistan except in defence, space and atomic energy in a step designed to build goodwill amid the renewed push for a peace settlement.
Published in Dawn, July 25th, 2014
