New Delhi : A week ahead of India and Pakistan Commerce Secretaries meeting in Islamabad,Indian industry chambers Wednesday said increasing trade through third nation and lack of investment promotion pacts are impeding the economic ties between the two neighbours.
Federal of India Chambers of Commerce & Industry FICCI said lack of direct trade between two nations has resulted in surge of informal trade. "Trade through third countries is mainly conducted through agents operating in free ports like Dubai or Singapore and Central Asian countries. The size of informal trade underlines the potential of bilateral trade between two countries," it said.
FICCI insisted that Pakistan should also grant the status of Most Favoured Nation (MFN) to India. India has already granted this status to the neighbouring country. The move will help New Delhi to push goods into its neighbour’s market and improve ties.
Indian Punjab & Haryana Chamber of Commerce & Industry said: "Major confidence building and trade enhancing measure would be Pakistan granting India MFN status." FICCI said lack of investment promotion and protection agreement between two countries remains a stumbling block. "There is a need to set up an institutional mechanism that would guarantee safety of each other’s investments." India allows import from Pakistan of all but a few items in negative list. Pakistan disallows exports from India in all but selected items in the positive list, thus, restricting bilateral commerce.
It said Pakistan should follow Indian model and open trade. As per Pakistan's positive list, India canexport only 1,938 items. Pakistan currently allows India to export items like meat, edible oil, cereals, tobacco, chemicals, fertilizers, leather, cotton, silk, coffee, tea, oilseeds. Both countriesshould organize trade fairs, set up web portals to increase awareness of each other's competencies andbusiness capabilities.
On visa issue, FICCI & Punjab & Haryana Chamber of Commerce & Industry said both nations should ease restrictions and work towards speeding up approval process for business visas. The move would facilitate movement of businesses. Indian Commerce Secretary Rahul Khullar and his Pakistani counterpart Zafar Mehmood are scheduled to meet on April 27 and 28 in Islamabad. PPI
