Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 1039 Sat. May 05, 2007  
   
Business


Indo-Pak trade under Safta can't be delinked from politics
Says Islamabad


Pakistan has suggested that strengthening trade relations with India under South Asian Free Trade Area (Safta) cannot be delinked from political issues and wanted New Delhi to provide a 'level-playing' field for Pakistani exporters.

Addressing a meeting of Punjab, Haryana and Delhi Chamber of Commerce and Industry here on Thursday, Pakistani High Commissioner to India Shahid Malik said although economics is driving international relations, economic ties are sustainable only if there is political harmony.

Asked if Pakistan would reciprocate India's giving most favoured nation status to Pakistan in trade, Malik said, "At some stages it has a political connotation".

He said Indian exports to Pakistan are three times higher than imports from that country.

Malik asked India to address the non-tariff barriers (NTBs) faced by Pakistani exporters and said Islamabad has already informed the Saarc (South Asian Association for Regional Cooperation) Secretariat in Kathmandu of its concerns over the NTBs.

He cited India's subsidies to agriculture, small and medium enterprises and huge public sector enterprises and 'excessive' standardisation requirements as NTBs, which are hindering Pakistani businessmen seeking entry into Indian market.

Referring to another key bilateral trade issue of Pakistan's existing positive list of goods to be traded with India, Malik said Islamabad has informed New Delhi that it is willing to negotiate the issue along with the subject of NTBs faced by Pakistani exporters.

The issue is being discussed at the level of experts, he said, adding that hopefully a solution would be found.

The two countries are negotiating to expand the positive list of products to include goods like textiles and machinery and import of wheat by India from Pakistan.

Referring to another important issue under Safta --granting transit rights of goods from India to Afghanistan --, Malik said Pakistani has already allowed movement of Indian goods from its Karachi port to the Afghan border. Opening of Wagah land port for India-Afghanistan trade could be done if political issues are addressed, he added.

Trade between India and Pakistan has grown from $237 million in 2002-03 to $1.2 billion in 2006-07.