Thursday, April 28, 2011

India, Pak to initiate steps for power, petroleum trade

Recognising that economic engagement will help build mutual trust, India and Pakistan on Thursday agreed to initiate steps for trade of electricity and petroleum products between them.Besides, Commerce Secretaries of the two countries agreed on a slew of measures to realise the full potential of bilateral trade which at present is less than $2 billion.

These included recognition by Pakistan that “grant of MFN (Most Favoured Nation) status to India would help in expanding bilateral trade relations”.The agreed minutes of the two-day talks held in Islamabad between India’s Commerce Secretary Rahul Khullar and his Pakistani counterpart Zafar Mahmoood took 19 decisions, including the ones in key areas like examining feasibility of cross-border trade in electricity and all types of petroleum products. 

“Both sides agreed that increase in trade and economic engagement would help not only in the mutual quest for national development, but also contribute to building trust between the two countries,” the minutes said. 

Both the sides expressed intent to explore the feasibility of entering into a preferential trade arrangement by extending tariff concessions on products of interests to both the neighbours.

Recognising that facilitation of business visas was essential for expansion of trade, it was agreed that the private sector, through officially recognised joint chambers, would be involved in this regard. 

The last round of bilateral trade talks were held in August 2007. However, economic engagement went into a hiatus following terrorist attacks on Mumbai in November 2008. 

Courtesy : The Hindu

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