Pak, India to double trade to $6 bn

Mumbai: Pakistan and India Wednesday agreed to ‘normalise’ their economic relations, setting an ambitious target of more than doubling bilateral trade to $6 billion within three years. Pakistan has also agreed to implement all the obligations under the South Asian Free Trade Area (SAFTA) Agreement,-meeting long standing demands from India.

The two nations, with commercial engagement of only $2.7 billion, ‘agreed to jointly work to more than double bilateral trade within three years ...to USD six billion,’ said a joint statement issued after a meeting between Commerce and Industry Minister Anand Sharma of India and Pakistan Commerce Minister Makhdoom Amin Fahim.

‘The ministers affirmed that fully normalised commercial links... would strengthen the bilateral relationship and build the bridges of friendship, trust and understanding for mutual benefit of their people and promotion of prosperity in South Asia,’ it said.

Fahim, who is accompanied by a 50-member business delegation, is the first Pakistan Commerce Minister to visit India after more than 35 years. Before coming here, he met Indian businessmen in Mumbai in the last two days. For normalising business ties, the ministers ‘agreed that all mutual obligations contracted under SAFTA would be implemented with full sincerity’.

On India’s demand for the Most Favoured Nation (MFN) status by Pakistan, Fahim said, ‘things are moving forward according to plan. We are looking forward to achieve the target’. The Pakistan side said it will allow imports from India on all but a few items (in negative list). Petroleum imports would also be allowed.

As a goodwill gesture, New Delhi will support Islamabad in WTO for the European Union’s proposal to extend duty benefits to Pakistani textiles, a concession given by the EU on account of floods in Pakistan. ‘India will be constructive and supportive as and when the WTO takes up this matter,’ Sharma said.

On Pakistani demand for allowing cross-border investments, he said India would take an early decision. ‘It is engaging our active and constructive attention at the highest level and you can expect an early decision,’ Sharma said. Doubling of bilateral trade would also be facilitated through an MoU signed between the India Trade Promotion Organisation and the Trade Development Authority of Pakistan.

Copyright NNI (News Network International), 2011