Pakistan hints at MFN status, allowing more products from India

We have liberalised our trade regime with India: Naeem Anwar

The government of Pakistan, it was hinted on Friday, might soon accord 'Most Favoured Nation' (MFN) trade status to India, something it has been postponing for a considerable while. And, that it might allow imports of some more goods from this country which are presently prohibited, such as pharmaceuticals and agricultural items.

"We have liberalised our trade regime with India. Last year, we shifted to a much smaller negative list; only pharmaceutical and agricultural items are left. Consultations are on with these groups and very soon, these products will be allowed and trade will also be normalised," Naeem Anwar, minister (trade) at the Pakistan high commission said here.

The negative list which became operational from March 21 last year contains 1,209 items that India cannot export to Pakistan, including pharmaceutical and agricultural products. India can export around 7,500 items there. Earlier, under a small 'positive list', India could export 1,946 items. Some of these items of export were vegetables, meat products, animals, fruits, tea, spices, palm oil, crude oil, sugar, cotton and organic chemicals.

"MFN status must be given to India. We have exceeded the WTO stipulation. We must do it soon; there is no need to delay," asserted Zubir Ahmed Malik, president, Federation of Pakistan Chambers of Commerce and Industry.

Malik added the governments on both sides were considering the idea of allowing trade through multiple points, to decongest the Attari-Wagah border post. He also said it was important, for trade relations to be stabilised, for the visa regime to be relaxed.

Echoing the point, Arvind Mehta, joint secretary of India's commerce department, stressed a visa system for easy movement of business people within each other's countries should be accelerated.

He said bilateral trade could touch $50 billion a year from the $2.6 bn at present, if informal trade through other countries could be stopped and trading between the neighbours was normalised.