Indo-Pak border to be upgraded by Feb to allow spurt in trade

International check posts at the India-Pakistan border will be upgraded  by February 2012, at a cost of Rs 150 crore to cope with the spurt of trade that the governments of India and Pakistan expect will be forthcoming in the rest of the year following Most Favoured Nation treatment to India  by Pakistan.

Senior officers in the Ministry of Home Affairs (MHA) explained that every day 200 trucks take goods to Pakistan while flow of import from the western neighbour is limited to 70-80 trucks but it could increase substantially once the rules are changed in Pakistan.

“Our job is of a facilitator and to maintain security but there are other ministries involved in the process. We have been asked by the commerce ministry to finish upgrading international check posts by February 2012 so we are expecting that the flow of goods from Pakistan will rise after that. There are hurdles from the Pakistan on the most favoured nation status but we expect them to be over soon,” said a senior home ministry officer.

A recent India visit of Pakistan traders and foreign ministry officials who met the National Security Advisor (NSA) Shiv Shankar Menon agreed that infrastructure was inadequate and it was a valid complaint. The bureaucrats of home ministry also met their Pakistani counterparts to discuss the urgent measures which must be taken.

According the plan of the home ministry, these international check posts will be a ‘sanitised zone’ which will have cargo terminals with adequate personnel from customs, x-ray scanners that could checks the goods coming to country, amenities for people, sheds and service stations. The international check posts at Attari-Wagah will be upgraded at a cost of Rs. 150 crore and the process has already begun.

"The business communities between India and Pakistan are very friendly, especially in Punjab where traders know each other so we expect the volume of trade to increase. But to estimate the percentage increase in trade is difficult. The existing infrastructure with customs and immigration is inadequate. To have better trading ties between the countries, the two sides would need better warehouses, place to park vehicles, banks and fuel outlets. It is true that all these facilities are inadequate and work has to be completed at the earliest,” the officer added.

The commerce ministry estimates suggest that total trade between India and Pakistan stands at $2.6 billion for now but with adequate help from the two governments this could be taken up to $6 billion by 2014. The Indian trader community is exporting cements, sugar, textiles to Lahore and essential items of fruits and vegetables while the major imports from Pakistan is limited to river stones and sometimes rice.   

Senior officials also said that the Border Security Force (BSF) has been asked to do a detailed report on the number of additional personnel that would be needed for the international check posts to maintain security and not allow any illegal items to be smuggled in the country.