Indian and Pakistani Ministers for Commerce Shri Anand Sharma and Khurram Dastagir Khan met in New Delhi on January 18, 2014. PHOTO: PID
NEW DELHI: India and Pakistan agreed on Saturday to expand movement of trucks and containers through their main border crossing to round-the-clock, signalling a thaw in relations after a year of tensions along the disputed border.
The meeting between Commerce and Textile Industry Minister Khurram Dastagir Khan and his Indian counterpart Shri Anand Sharma on the margins of 5th SAARC Business Leaders Conclave was preceded by consultations between the secretaries of commerce on matters related to economic and trade relations.
Trade ministers of the two countries meeting in New Delhi also approved a liberalised visa policy for businessmen to help expand two-way trade, which was barely $2.5 billion in 2012-13 fiscal year against a potential $10 billion.
They decided to implement the measures agreed upon before the end of next month.
Both sides hope closer integration of Pakistan with India's giant economy would help lay the ground for a lowering of political tensions between them.
"We have agreed that we will open Wagah-Attari border 24/7 for trade," Anand Sharma, India's trade minister told reporters, referring to the main border crossing in Punjab.
The border gates at the moment are open only from dawn to dusk. Pakistan also agreed to provide non-discriminatory market access (NDMA) to Indian companies.
Over the last year there was little movement on trade because of a series of incidents over military control of the line dividing Kashmir between the two countries.
Two years ago, the two countries set a goal of taking bilateral trade to $6 billion by 2014, which now seems difficult to attain. Pakistan's Commerce Minister Khurram Dastagir Khan said the country's central bank had proposed its Indian counterpart grant banking licences to three Pakistani banks, a move which would be reciprocated by his side.
"In the banking sector we are hoping to have some progress,
very rapid progress," he said.
The ministers emphasised the importance of trade facilitation measures and directed their respective ministries to work out modalities for containerisation of cargo; allowing all tradeable items by land route at Wagah; liberalization of business visa regime; enhancing operational hours at Wagah and Attari and consider other such measures as deemed necessary by the business communities of the two countries.
They agreed that both sides would convene the meetings of technical working groups of customs, railways, banking, standards organizations and energy to devise the modalities for effective implementation of all requisite measures.
With the objective of enhancing bilateral trade opportunities, FICCI and the Trade Development Authority of Pakistan are also coordinating an 'India Show" in Lahore in mid-February.
Joint Business Forum
A Joint Business Forum of Chief Executive Officers indifferent sectors have also met twice after the formation of the present Pakistan Government.
Several sub-groups have been formed by this Joint Business Forum to enhance trade cooperation in diverse sector such as textiles, tourism, energy, light engineering, Pharmaceutical and others.
The third meeting of this Joint Business Forum is scheduled in Pakistan for mid-February.
Both Indian Prime Minister Manmohan Singh and Pakistan's
Nawaz Sharif who took power last year are keen to rebuild ties.
Pakistan's economy grew at 3.6 per cent in 2012-13 and the government was forced to borrow $6.7 billion from the
International Monetary Fund to avert a default of payments.
Sharma said he will lead a business delegation to Pakistan next month.
COMMENTS (22)
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@Aschraful Makhlooq: hey behave !!!!!!!
@Bakhtiyar Ghazi Khan: You have some proof? Can you share here?
@SHB: See ,the prejudice against our religion is right there. Thanks for showing your true intention.
Most welcome sir
India killing our Pakhtun people in FATA, KP and Kashmiri, Punjabi brothers on our border yet Nawaz rewarded them with trade. How shameless is this guy?
Good initiative but it would have been even better had they opened Khokhrapar-Monabao border as well to facilitate the traders of Sindha also.
Trade between countries will be sucessful only if it is win-win.
Although this is small step but I had never hoped in my life time that relation between 2 nuclear armed nations would ever improve...Starting as hater of Pakistan as a kid and Mumbai incident and listening to Zaid Hamid like idiots I alwayz thought one day we would trash someone real hard....Lately thanks to Media on both side (more so in pakistan may be due to internal issues) i see gradual steps taken to improve relation.. going like this may be in next 30 years big things would be happening atleast younger generation of both countries would not look at eachother atleast as enemies and focus on more important issues..Only thing they would miss is fun of defeting Pakistan in cricket matches especially world cups..
Is there only one border between India and Pakistan. Some thing wrong with Picture.
Let us hope there are no beheaded bodies start appearing this time when we are talking cooperation. Let us hope there are no firing incidents across line of control and other means to stop the civilian and economic cooperation. I am not a cynic but distinctly remember the time when easy border crossings and visa policy was announced. Soon after that beheaded bodies started appearing and the whole process ceased.
This is a very good start, as by doing such things there will be reduce in costs, hence india n Pakistan will be strong in rupes, as compare to dollars
Yes absolutely. Why a direct trade is needed with India when Indian products from Dubai at higher amount are coming in Pakistan.I am sure you are a direct beneficiary of such a trade :).
@SHB: Whose true intentions? Has any government functionary made such a comment? I hope you are aware that India has as many Muslims as Pakistan, the constitution ives equal rightsgo people of all religions and unlike Pakistan we do not have separate electorates for mnorities and so no politician in India can get away with being anti-Muslim. This may seem off track as regards to the news item but is very relevant to the post i am responding to which implies some tpe of anti-Islam mindset in India.
Anyway realistically speaking the banks established are going to be corporate banks that facilitate trade and cash management. They are unlikely o be consumer banks. In light of that, the banks that open are unlikely to be Islamic banks.
@Lala Gee: Direct trade would reduce costs and hence inflation in Pakistan. I am sure you realize that routing goods through Dubai significantly adds to the cost.
India has already given non discriminatory market access. It is Pakistan which finds one excuse after another to reciprocate.