Pak to try for more concessions from India

Pakistan will try to get more concessions for its products from India as it switches over to a negative list regime that will allow the import of about 6,000 Indian items, Commerce Secretary Zafar Mahmood said today.

A day after the federal cabinet paved the way for giving India Most Favoured Nation (MFN) status by clearing a proposal to switch over to a negative list regime for trade instead of a small positive list, Mahmood said December 31 had been set as the time-frame for phasing out the negative list of 1,209 items.

"The phase out period will be till December 31, 2012, and till then we will continue talks with India and we will try to get more concessions from them for our exports," Mahmood told the media.

"We prepared this list of 1,209 items after consultations. These items cannot be exported by India to us. Other than these, the export of about 6,000 items from India will be allowed," he said.

The cabinet’s decision dominated the front pages of Pakistani newspapers, and the headline in the Dawn read: "Restriction-free trade with India after December”.

Reports said the negative list largely comprises items used by sectors which, experts say, are apprehensive that trade with India could affect their monopolies, including automobile makers, pharmaceuticals and textiles.

India accorded Pakistan MFN-status in 1996 but Islamabad had not reciprocated so far due to opposition from political parties and elements who claimed free trade with New Delhi would dilute the country’s stand on the "core issue" of Kashmir.