Pakistan, India trade to revive gradually

0
127

NEW DELHI – Pakistan and India are expected to take gradual steps to revive bilateral trade ties but there should be no expectations of any spectacular announcements, a top government official has said.
The two sides have decided to resume the dialogue as part of Manmohan Singh’s cricket diplomacy. Dialogue between the two neighbours came to a halt after the Mumbai attack more than two years ago. Commerce Secretary Rahul Khullar will travel to Islamabad next month to discuss modalities for pushing bilateral trade while Pakistan’s trade secretary is expected to visit New Delhi later to strengthen the dialogue process.
“Don’t expect any big bang announcements. Both sides will take baby steps. You cannot expect immediate results after there has been no dialogue for a substantial period. We have to see what they have to offer,” an official noted. The issue of granting the Most Favoured Nation (MFN) status to India by Pakistan is expected to figure prominently in the discussions but Indian officials are doubtful about any positive outcome soon.
Indian officials have claimed that Islamabad has dragged its feet on the MFN issue for years as there are apprehensions that Indian goods will flood Pakistan’s markets and hit business and lead to job losses. Official trade between the two countries is paltry and studies show that bilateral trade can grow to $11 billion if steps are taken to streamline business relations.
According to latest official data, bilateral trade between the two neighbours stood at $1.8 billion in 2009-10. A significant amount of business between the two countries is carried out through third countries such as United Arab Emirates and analysts say unofficial trade is estimated between three and five billion dollars.
Economists say opening up trade ties would help Pakistan improve its revenues by curtailing unofficial trade. Official trade between the two countries is paltry and studies show that bilateral trade can grow to $11 billion if appropriate steps are taken to streamline business relations.