India and Pakistan have decided to formulate 'minimum agreed trade agenda' for the forthcoming Foreign Secretary level talks expected to be held on April 28-29 well-informed sources told Business Recorder. Indian High Commissioner Sharat Sabharwal held a meeting with Secretary Commerce, Zafar Mahmood on Monday, which lasted for more than an hour to discus possible agenda on trade related issues for the proposed meeting of Foreign Secretaries.
The sources said Indian High Commissioner was expecting an instant positive response from Islamabad side on the proposed agenda, but Secretary Commerce explained that the government cannot give any assurance without prior consultation with the country's private sector which is a key stakeholder. Commerce Ministry, sources said, will take local industry into confidence prior to making any commitment with the Indian side, so that industry which is already facing problems due to energy crisis may not be hit by any hastily taken decision.
The sources said Pakistani side apprised Indian HC about the Non Tariff Barriers (NTBs) being imposed by his government to discourage Pakistani exports. A couple of years ago India had also promised to facilitate export of some much desired Pakistani goods to India, but there has been no movement in this regard. Pakistan also feels that India is creating hurdles in smooth implementation of South Asian Free Trade Agreement (SAFTA).
Indian High Commissioner, sources said, also repeated his country's earlier demand to grant India Most Favoured Nation (MFN) status, which Pakistan has already linked to progress on composite dialogue. Indian High Commissioner, sources said, argued that Pakistan should allow Indian exports to Afghanistan through Wagha border.
Commerce Secretary, however, did not give any response to this request. Afghanistan is allowed to use Pakistani soil to export its goods' to India through Wagha border under the US sponsored Afghan Pakistan Transit Trade Agreement. However, Pakistan has expressed willingness to give a side letter to Afghanistan meant for facilitation of Indian goods to Kabul after relations between the two nuclear rivals normalise.
When contacted, Secretary Commerce Zafar Mahmood confirmed that Indian High Commissioner met with him in his office to discuss trade relations and formulation of consensus trade agenda for Foreign Secretary level talks. Pakistan has recently allowed import of following goods from India: (i) Methylisoxazole-Sulthamoyl- acetamide; (ii) cotton waste; (iii) laboratory glass ware of all sorts; (iv) tools for tapping or threading; (v) plant and machinery for extraction and refining of rice brain oil; (vi) air break equipment and parts thereof and ;(vii) laboratory testing equipment for pharmaceutical industry with the accessories and spares.
The sources said Commerce Ministry is also making its best efforts to allow import of more than a dozen goods from India over and above the positive list. An inter-ministerial body, headed by the Commerce Minister, has been mandated to finalise the items and submit it to the Prime Minister for final clearance. The Prime Minister is leaving for Mohali (India) to watch the World Cup semi final cricket match between India and Pakistan. Prime Minister, according to official sources, will discuss all thorny issues with his Indian host Prime Minister Dr Manmohan Singh on the sidelines of the match.