Pakistan widens trade with India

NEW DELHI (Agencies) Pakistan took further steps towards normal trade and travel ties with India on Tuesday, agreeing to open most commerce with its larger neighbour by February and ease visa rules in the latest sign of a thaw in relations between the two countries.
We have turned the corner, Commerce Secretary Zafar Mehmood said at a joint news conference with his Indian counterpart in Delhi. We are talking of a complete normalisation roadmap. The two countries trade secretaries agreed Pakistan will replace a limited list of items India can sell across the border with a short list of items that cannot be traded, minutes of the meeting showed.
Earlier, Indias trade secretary Rahul Khullar said Pakistan would notify India by February of a negative list of items. He said both sides hope to do away with the list by the end of next year, in a concrete step to normalise commerce between the two countries.
Mehmood said the list would be drawn up within a couple of months then gradually phased out. He said an expert panel would decide in January on allowing the trade of oil products.
Both countries agreed to push for easing of visa rules that severely restrict travel across the heavily armed border. They will look at the feasibility of electricity trading and will open a second road trading post by February. Under the existing practice, both countries require businessmen to register with police on their arrival and regularly report to them. Visas are issued only for one city.
Agreeing that Islamabad has a WTO obligation to grant the Most Favoured Nation (MFN) status to India, Mehmood said: MFN is not an award or a degree which we can give to Khullar Saheb. This would not need any notification or a document. Under WTO, members are to grant MFN to each other. That obligation stands and will be completed when there is no list (positive or negative).
Khullar said once Pakistan moves from positive list (PL) to negative list (NL), the bilateral trade would improve considerably. At present, Pakistan allows import of only about 1900 Indian items, listed in the PL.
This time it is different. Its not just politicians giving statements; theres a whole roadmap chalked out with a time frame, Amin Hashwani, president of the Pakistan-India CEOs Business Forum told Reuters.
The 'negative list of items that India will initially be restricted from trading includes the pharmaceutical and engineering industries, SM Muneer, president of the India-Pakistan chamber of commerce told Reuters. Pakistani pharmaceutical and engineering companies are worried they will be swamped by Indian imports.
In contrast to the excitement in the business community, Indias defence minister sounded a note of caution.There are positive signs for a breakthrough but one should not expect a miracle, Defence Minister AK Antony told reporters at a meeting on regional security. We need to change our mindset if we really wish to reap the benefits of mutual cooperation, he said.