A new wave of cooperation

Dialogue between India and Pakistan has always been a roller-coaster ride and successive attempts to garner support and coordination between the two nuclear-armed neighbours as often been interrupted by the escalation of violence and border tensions. In this context, recently concluded visit of a Pakistani delegation to India appears to be promising. Among the most eagerly awaited developments, India has formally assured Pakistan that it will withdraw its opposition to duty waivers offered to Pakistan by the European Union. The two sides also appear to be moving briskly on the fronts of visa liberalisation, trade facilitation as well as cooperation in the fields of social development, including offering treatment in India for Pakistani children suffering from heart disease. Speaking to BR Research, prominent industrialist Mirza Ikhtiar Baig from textile sector revealed that the two countries have agreed to boost bilateral trade from $2.7 billion to $6 billion in 3 years. "There is immense demand for cement, textiles and light engineering products in India," said Baig, adding that "exports of bed linens and lawn as well as electrical fans from Pakistan can quickly grow" in Indian markets. MCB has recently opened a branch in India, which is expected to facilitate local exporters selling goods in India. On the other hand, Pakistan is expected to import cotton, chemicals, iron, steel, and raw materials for cosmetics and pharmaceutical products from India; while greater participation in the fields of jewellery, sugar, fruit, vegetables and information technology sectors has been pledged. Pakistani business professionals have often complained that Indias visa policies towards the country are unreasonably restrictive. However, these distraught individuals may have a cause for celebration as Indian representatives have assured that visa processing times will be slashed from three months to one week. Similarly, the current limitation of allowing Pakistani visa holders to visit just three Indian cities will be relaxed while multiple entry visas, valid for up to one year will be issued to Pakistanis, as agreed in the recently concluded talks. During a meeting with Indian customs authorities, Ikhtiar Baig urged the need for drastically reducing non-tariff barriers which have severely limited market access to India for Pakistani products. He also highlighted the need for developing cold storage and warehousing facilities to facilitate cross-border transport of perishables. An end to Indias opposition to EUs duty waiver for Pakistani goods promises to be a boon for the local textile industry. Out of 75 items in the list of products eligible for duty waivers across Europe, 65 are related to the textile sector. Industry insiders expect these concessions to bring an additional $300 million in export revenues to Pakistan. Friendly relations between India and Pakistan can help both countries boost economic activity significantly. Building trust between the traditional foes will also allow both developing economies to draw down their military spending in favour of much-needed social and developmental expenditures. One hopes that the renewed efforts to build conducive climate for greater cooperation will continue unabated in the future.