THURSDAY APRIL 28: EU's free access to Pakistan: India's support sought as talks begin

ISLAMABAD: Pakistan and India on Wednesday began their first trade talks since the 2008 Mumbai attacks with India pressing its demand for the grant of Most Favoured Nation (MFN) status while Islamabad working towards mustering Indian support on European Union (EU) decision to grant duty-free access to its goods. The two sides are also expected to move ahead on the import of jet fuel, petrol and electricity from India.
Secretary Commerce Zafar Mahmood and his Indian counterpart Rahul Khullar led the fifth round of trade talks. Diesel and furnace oil are in importable items list from India since 2008. Sources told Business Recorder that Ministry of Petroleum had proposed to Ministry of Commerce to take up the inclusion of JP-1 and petrol in importable items from India.
"The country was facing deficit of diesel and furnace oil in 2008 and therefore these petroleum products were included among importable items from India," sources said, adding that now production of oil refineries has declined due to circular debt and the country is facing scarcity of jet fuel and petrol. "Therefore, we have recommended the import of jet fuel and petrol from India," sources maintained.
The country's consumption of petroleum products currently stands at about 21 million tons, of which about 85 percent is met through imports. Indigenous crude production meets only 15 percent of the consumption, while 30 percent crude and 55 percent refined products are imported. Addressing media at the end of first day of bilateral talks, Secretary Commerce Zafar Mahmood hoped that talks would accelerate dialogue process and all issues relating to facilitation and promotion of bilateral trade would be resolved.
"The two sides will discuss all the issues of mutual interest," he said, adding that improvement in trade will economically benefit both the countries and the region. "We think that there is a huge potential to enhance bilateral trade," he added. Indian Secretary Rahul Khullar called for a quick turnaround of trade after four previous rounds of talks ground to a halt in the wake of Mumbai attacks.
He said that this process was interrupted and now must resume and continue. "It must gain a significant momentum," Khullar said, adding, "We are here for a constructive engagement to move ahead on the bilateral trade agenda." Indian officials said that talks would focus on better co-ordination and establishing systems that would boost bilateral trade in compliance with multi-lateral and regional obligations like the South Asian Free Trade Area pact.
The average annual Pakistan-India trade volume is around $2 billion. A total of 1,946 items are being traded between the two countries. The trade talks are part of the dialogue process that was revived by the two countries earlier this year after a gap of over three years.