scorecardresearch
Follow Us:
Saturday, May 28, 2022

India-Pak bilateral trade seen at $8 bn

Opening up of Attari-Wagah border and Pak's granting MFN status to India can increase trade.

Written by Agencies | Bangalore |
April 11, 2012 7:45:03 pm

Opening up of the integrated checkpost at Attari-Wagah border and Pakistan’s granting the Most Favoured Nation (MFN) status to India can increase bilateral trade to USD 8 billion within two years,from USD 2.6 billion at present,industry chamber Assocham.

Islamabad has committed to bury the negative list of 1,209 items by the end of this year and move to a regime that is in line with WTO rules.

“This is a very welcome step towards reduction of barriers to bilateral trade,” said an Assocham study – ‘The Potential of Indo-Pak Economic Engagement in Post-MFN Scenario.’

“The decision to move towards a negative list approach will go a long way in saving time and costs incurred by third country trade route that encompasses in almost 20,000 items,which could otherwise follow the bilateral route,” Assocham President Rajkumar Dhoot said while releasing the study.

Best of Express Premium

Weekly Horoscope, May 29, 2022 – June 4, 2022: Libra, Aries, Pisces and o...Premium
Heat rising over Kerala rally, PFI in no mood to backtrack on ‘camp...Premium
‘Monetisation’ axed, MeitY’s fresh draft to ‘encourage’ cos to share non-...Premium
Supreme Court directions on sex workers: history of the case, and where i...Premium

Nearly 6,000 items can now be imported into Pakistan from India as against less than 2,000 items earlier. India granted MFN status to Pakistan in 1996 but Islamabad agreed to a time-frame of granting the same to India during Commerce Minister Anand Sharma’s visit in February.

The two countries will soon open up an integrated check post at Attari-Wagah border – which will raise the number of trucks crossing the border to about 600 from the current 150 – and ease visa rules for business travel. The issues figured in talks between prime minister Manmohan Singh and Pakistan president Asif Ali Zardari on April 8.

Pakistan has expressed willingness to give India transit facilities for trade with Afghanistan and Iran – especially in energy and infrastructure projects.

India has developed high competitiveness in the services sector. Based on qualitative and quantitative analyses,several areas with potential for cooperation in the near future have been identified.

They are: petroleum products,iron and steel,pharma,chemicals,automobiles,heavy industries,electricity trade,small and medium enterprises,IT and IT-enabled services,telecom,transportation and financial services.

“Integrated check posts with faster customs clearance facilities need to be established to normalise trade relations,” said Dhoot in a statement. “The establishment of a joint business council and a joint study group can be supportive to the process of trade normalisation.”

Informal trade between India and Pakistan via third countries like the United Arab Emirates (mainly Dubai),Singapore and Hong Kong is estimated at USD 5-7 billion.

Legalisation of trade is expected to reduce costs and increase government revenue by collecting duties on imports,said Dhoot.

For all the latest News Archive News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
Advertisement
Advertisement
Advertisement
Advertisement