India, Pak to initiate steps for trade in power, petroleum

Rezaul H Laskar
Islamabad, April 28 (PTI) Recognising that economic
engagement will help build mutual trust, India and Pakistan
on Thursday agreed to initiate steps for trade of electricity
and petroleum products between them.
Besides, commerce secretaries of the two countries
agreed on a slew of measures to realise the full potential of
bilateral trade which at present is less than USD 2 billion.
These included recognition by Pakistan that "grant of MFN
(Most Favoured Nation) status to India would help in expanding
bilateral trade relations".
The agreed minutes of the two-day talks held here between
India's Commerce Secretary Rahul Khullar and his Pakistani
counterpart Zafar Mahmoood took 19 decisions, including the
ones in key areas like examining feasibility of cross-border
trade in electricity and all types of petroleum products.
"Both sides agreed that increase in trade and economic
engagement would help not only in in the mutual quest for
national development, but also contribute to building trust
between the two countries," the minutes said.
Both the sides expressed intent to explore the
feasibility of entering into a preferential trade arrangement
by extending tariff concessions on products of interests to
both the neighbours.
Recognising that facilitation of business visas was
essential for expansion of trade, it was agreed that the
private sector, through officially recognised joint chambers,
would be involved in this regard.
The last round of bilateral trade talks were held in
August 2007. However, economic engagement went into a hiatus
following terrorist attacks on Mumbai in Novermber, 2008.

Pakistan would remove its present restrictions on trade
by land route as soon as the infrastructure to facilitate it
is completed.
For trade in petroleum products, a joint group of experts
would be set up before June 15 to discuss arrangements,
including building of cross-border pipelines and use of
road-rail route,including Munabao-Khokrapar route.
A similar group would examine the feasibility of trade in
electricity.
Both India and Pakistan agreed that to build confidence,
dispel misunderstandings and allay any misapprehensions, it
was essential that governments in both countries support
business communities.
"Necessary outreach activities would be undertaken to
bridge information gaps relating to the trade environment and
economic opportunities," the joint statement said.
In an ambitious target, the two sides also agreed on
desirability of promoting bilateral investments.
Besides, they appreciated that opening of bank branches
in each other's country is important.
A significant progress has been made in developing
physical infrastructure for trade through Wagah-Attari land
route. It was agreed that "closer coordination needs to be
ensured to open the second gate and new dedicated roads for
passenger and free traffic".
Trading hours on this land route would also be increased.
For harmonisation in customs procedures, facilitation of trade
consignments, exchange of trade data and information a
cooperation agreement would be signed.
In a reflection of New Delhi desire, it was agreed that
Pakistan would broadbase its trade basket. The consultative
process in this regard has been set in motion and information
from stakeholders is being collected to replace the present
"positive list" with a "negative list". The process would be
completed by October this year.
While India allows import of goods from Pakistan on all
but a few items in the negative list, it is other way round
for Islamabad. Pakistan disallows import from India on all but
those listed in the positive list.