ISLAMABAD, Aug 25: Pakistan and India are likely to exchange in October additional lists of items for concession of duty under South Asia Preferential Trade Arrangement (SAPTA) to enhance volume of bilateral trade.

Well-placed sources told Dawn on Monday the decision of adding more items to the lists for concession was taken following the request from the Saarc secretariat to the governments of two countries.

The lists would be exchanged by officials of the two countries following the finalization of draft South Asia Free Trade Area (SAFTA) treaty in Katmandu in October allowing free trade among member countries.

Pakistan had granted tariff concession to four Saarc member countries (least developed countries) on more than 400 items in November last year during the fourth round of SAPTA. However, the Indian delegation at the meeting refused to exchange list of items for concession with Pakistan.

Under SAPTA, Pakistan has so far given concessions on around 240 items at sixth digit level to India, while Islamabad received concessions on around 370 items at sixth digit level (the place of this category of items on the list containing all categories of items) from New Delhi under the same arrangement.

“There is still room for giving duty concession to India under SAPTA on 440 more items at sixth digit level,” the sources said.

At present there are only 686 items at sixth digit level on the positive list for trading with India. Of these, only 240 items are allowed for duty concession to India under SAPTA.

According to the sources, the government had already started inter-ministerial consultation to work out the items for consideration of duty concession for India under SAPTA.

“Pakistan should give concession provided India reciprocated with at least three to five folds margin so as to bridge the trade deficit,” the sources said.

This development will also result in a meaningful advance in trade relations, the sources said and added that in case the governments of two countries gave further official concessions on items, it would also result in reduction of smuggling.

Under SAPTA, Pakistan has so far given preferences in tariff on more than 763 items to all Saarc member countries, while Islamabad received preferences on around 788 items from these countries.