Indian airlines, led by the Air India, would soon be starting flights to and from Pakistan as the two countries have achieved new milestones on the trade liberalization front in recent months.
Also, Pakistani traders and industrialists want New Delhi and Islamabad to connect Mumbai with Karachi through air and sea links as businesspersons on this side of the Line of Control were serious to import from India what they have been importing from China and other countries.
“Consequent to the commerce-secretary-level talks between India and Pakistan, air connections between the two neighbors would be increased,” said Naeem Anwar, Minister (Trade) High Commission of Pakistan in New Delhi, who visited the Karachi Chamber of Commerce and Industry (KCCI) on Tuesday.
Linking air frequency to visa issuance, the minister said since the policy was being liberalized, Air India would be starting flights to Pakistan in due course. While private Indian airlines had also shown interest to start operations in Pakistan, he added.
Minister (Trade) Pakistan High Commission in New Delhi Naeem Anwer, while exchanging views at KCCI, recognized the vibrant role of KCCI and industrial activities and for socio-economic development of Pakistan.
Highlighting latest developments by Indo-Pak governments on bilateral relations, he said the two governments had prioritized the opening of banks branches across the border by March 2013.
The National Bank of Pakistan and United Bank would open branches in India while branches State Bank of India, Bank of India and Punjab National Bank would open branches in Pakistan.
New Delhi has allowed Pakistani investment in India through Indian Board of Investment Promotion. Investors across the LoC were keen to invest in this regard, said Naeem.
He said the Secretary Commerce had instructed him to brief the country’s chambers of commerce about the latest developments on bilateral trade. He said the negative list would be abolished by December 2012 and in April 2013 current 800 tariff lines of SAFTA would also reduce to 100 tariff lines.
Also, by year 2017 SAFTA sensitive list would be reduced to 100 items.
The government of Pakistan was also considering to allowing all tradable items through Wagah, he said adding recently three agreements were signed by the two governments on customs cooperation, mutual recognition and redressal of grievances that would be implemented after completion of all legal formalities.
He said according to new visa policy, business visa for small category businessmen having net income of five to 30 lacs would be given one year visa of five cities by four multiple entries with police reporting.
For big category businessmen having net income beyond 30 lacs would be given one year visa of 10 cities by multiple entries with exemption of police reporting. The authority to verify income was under consideration.
Naeem said that potential Pakistani products for export to India were textiles (home textiles, fabric), agricultural based products and agro processed products. Urging the manufacturers to capture their share of Indian markets, the minister said Islamabad had urged to rationalize tariffs of products which are on higher sides.
Information on tariffs was available online on various Indian websites, he added. Consequent to talks of Indo-Pak commerce secretaries, air connections would be increased.
Linking air frequency to visa issuance, Naeem said since the policy was being liberalized, Air India would be starting flights to Pakistan in due course, while private Indian airlines had also shown interest to start operations in Pakistan.
He also sought proposals from KCCI to identify products, logistics data, warehousing facilitates, information on required infrastructure with regards to trade from Khokrapar Monabao border which was under consideration by two governments.
He informed that in India the role of chambers had transformed and they were less dependent on subscription and were generating income in billions of rupees from exhibitions, fairs and event management. He urged the chambers of commerce in Pakistan to focus on research and development which Pakistani chambers were lacking as compared to their Indian counterparts.
Naeem also elaborated on the role of National Tariff Commission and educated the members of KCCI to opt for legal formalities in case of anti-dumping or injury to domestic industry.
He said India was offering huge subsidies for exportable items, therefore, Pakistani business community should be cautious of influx of Indian goods keeping in view viability and price competitiveness of identical domestic items.
He also asked the KCCI members to study the Indian models of business joint ventures if they were interested for same with Indian counterparts.
The minister also assured support from Pakistan High Commission in New Delhi on policy matters. One Indian company offered Karachi Metropolitan Corporation produce 8MW energy by processing the solid waste here at Karachi, he said.
Earlier in his welcome address, President KCCI Muhammad Haroon Agar said fostering the process of regional trade and economic cooperation between the two countries would augur well for peace and prosperity in the South Asian region.
The KCCI chief said it was the need of the hour that both governments, besides opening new land routes, should positively consider to connect Mumbai with Karachi through air and sea links. He said Pakistani businesspersons were serious to import from India instead of China and other countries located outside the South Asian region.
Agar also urged to formalize the informal trade which is higher than formal trade of $2.7 billion achieved in year 2011.
Anjum Nisar, former KCCI President, stressed the need for successful branding of logos “Made in Pakistan” in India and capturing its potential market.
Majyd Aziz, another ex-president of KCCI, said there should be no discrimination of categories of small or big businessmen with regard to issuance of visas. He also urged the need for opening Khokrapar-Monabao route for trade purposes.
Neighborly love in flight
