Top officials of India and Pakistan began talks on Monday to flesh out a plan to open up trade between the countries, after Islamabad said it would grant Most Favoured Nation (MFN) status to its arch rival.
Commerce Secretary Zafar Mahmood and his Indian counterpart Rahul Khullar are holding two days of discussions in New Delhi aimed at doubling annual trade in the next three years to $6 billion.
The visit followed the federal cabinet’s decision on November 2 to grant MFN status to India, reciprocating a move made by New Delhi in 1996. “The cabinet not only gave its full approval but also mandated the Commerce Ministry to achieve complete normalisation of trade” with India, Mahmood told the meeting in New Delhi.
Mahmood said Pakistan “hopes to cover a lot of distance” in this week’s talks. “We will have interactions in the spirit of mutual cooperation and confidence so please have trust and faith in the process (as) times have changed and the world is coming closer,” he said.
“Through this meeting we want to create an atmosphere through which the composite dialogue can go forward,” Mahmood said.
Khullar said India welcomed the MFN status that was intended to remove discriminatory higher pricing and duty tariffs that stood as barriers to exports between the South Asian neighbours.
“Our business communities, our politicians and our citizens are looking to both our delegations to deliver a substantial breakthrough – not only for full normalisation of our trade relationship, but to go beyond and lay a strong foundation for preferential trading arrangements,” Khullar said.
Analysts have said the decision to ease trade barriers could open enormous opportunities in sectors such as agriculture, textiles and pharmaceuticals for the two countries.
Khullar also said India and Pakistan had reached a “broad agreement” to liberalise business visas which would help spur cross-border trade. “We are hopeful that an agreement shall be finalised during the next round of home secretary level talks, slated for December,” he told the delegates.
India’s Commerce Minister Anand Sharma has said he would lead a trade delegation to Islamabad next February at the invitation of his Pakistani counterpart, Makhdoom Amin Fahim.
