According to a government statement quoted in the AP report, Pakistan will “phase out restrictions on imports from India by December.”
The statement further said that once the "negative list" of goods had been eliminated by December this year, then "the process of trade normalisation between the two countries would be completed."
A press release from the Cabinet detailed that 1209 items on the negative list will be eliminated.
At present, Pakistan maintains a list of 1,945 items allowed to run from India to Pakistan, only 108 of which can be trafficked directly by road through Wagah.
The release further quoted the Information Minister Firdous Ashiq Awan, who called for bilateral trade to be expanded to other areas beyond the Line of Control.
Indian Minister for Commerce, Industry and Textile Anand Sharma appreciated Pakistan’s decision to liberalise trade between the two countries and said “the move would open business opportunities,” IBN Live India reported.
"This will mark a dramatic shift in the lines that can be traded as now almost 90 per cent items can be traded with Pakistan as opposed to 17 per cent earlier," Sharma was quoted in the report.
"I am happy that this has been achieved. We believe that strengthening economic engagement between India and Pakistan lies at the heart of building enduring peace and stability in this region. Flourishing trade is the biggest confidence building measure among any two nations," Sharma further said.
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@Pakistani Agnostic: Good luck bro. A lot of your shia brethren came running back. Even my sunni Pakistani friends dont want to go back. And if your are unfortunate to be a Ahmedia, then you are suicidal to go back. Patriotism works as long as you live abroad. Reality on the ground is different. I'd love to hear from you in 5 years.
this is not good news at all,our market will get eaten up,gobbled consumed just like the media,our businesses are already struggling, and quality of products will suffer as well,
I'm loving it. Together we can win. Aren't we more alike than different? I can't wait to have delicious Shan masala. Fed up with MDH and Everest. :)
@D C Bhardwaj: I am a student pursuing chartered accountancy and i would go back once i complete my designations. I have a right to be patriotic because its my land
@Pakistani Agnostic Dear if you loves your country products so much then why you left your motherland. Be practical man.
@Vijay K: Are you living under rock? I only buy made in Pakistan products in Toronto and it has been relatively easy.
This is great if it comes to fruition and some hitch (real or contrived) does not stall the process.
Open up, trade is good, it expands consumer choice, reduces prices because it fosters competition. Of course some industries will be hurt others will earn less monopoly profits! They need to be safeguards for the former and no tears shed for the latter.
If this goes through, it could boost our potential growth rate by 1-2% od GDP with similar benefits accruing to the other side.
Protectionism is a dead-weight on any economy. It breeds inefficiencies.
Those economies that do well and grow fast are OPEN not closed to trade. This is an empricial fact and not a fantasy.
@ Indian Posters who are explaining why this deal is good.
Guys this deal will never materialize , its a fool's paradise, we have been hearing this what from 1996? how dumb should they think us to believe it will done within end of this year.
For all those people who are afraid of this trade relationship, please remember it is our fear of each other which has kept us apart and given chance to extreme rightist to misguide us. Rightist do not want common people from both countries to trade, communicate and mix because they feel they are loosing power. Trade is a good step, next step should be opening up tourism for each other and relax visa restriction, final step would be to lower our skepticism for each other and build trust and friendship which our future generations will benefit from.
if india do the equel trade with pakistan ,
@Babloo: No Mr.Babloo...its foolishness on your part to carry the burden of the past....and justifying the prevailing status quo between the two countries. Times have changed and past has no place in shaping the feature except to be cautious in modalities.
@Ramanujam: Right on spot bro...but it is good that most Pakistanis are in favour of this tie up.As for oppossition to the deal, we even have a group in India who is against the deal. the group made a hue and cry when Pkaistan exported cheaper Cement to India. We should avoid insane voices and proceed with normalization of trade..this will benefit both. GOOD LUCK
@mentelisco: Your opinion is flawed. Mutual trade is bound to have positive impact.Get rid of this fear factor of the size of Indian economy. There are smaller countries who have prospered with mutual trade with neighbours.Indian industry has lot to offer to Pak. Every thing depends upon the quality and cost of your products...improve it and succeed.
great move.it will definitely improve both our relations with and also our trdae parameters
@lmao: "The thing is Chinese companies dont know the consumer mentality of Pakistanis, but Indian companies will be able to exploit Pakistani consumers very easily because Indian and Pakistani consumers have very similar mindsets. This deal will heavily benefit Private Indian companies who will eat up Pakistan."
Have you considered that the reverse would be true as well i.e. Pakistani businessmen would very well understand Indian consumer mindset? Why do you have such a low confidence in your compatriots? The goods that they sell to the world are goods they are competitive in and should now be able to sell to a bigger market. The goods they import from elsewhere, if they import from India instead, the cost will be lower for Pakistanis due to lower transportation costs. Is that a bad thing?
Whats wrong with implementing it today? Pakistan govt is renown for making statements about what's going to happen tomorrow or in the future - unfortunately not many of those pronouncements ever materialize.
@ParvezM: "When is India going to open their markets for our products? How about subsidies to Indian producers and all the other restrictions." India gave the MFN status to Pakistan in 1996. What subsidies are you referring to? Most products do not get subsidy. Yes fertilisers get some subsidy in India but on the other hand in Pakistan the petrol even today after all the increases is cheaper than in India and transport costs are higher. So some inputs are cheaper in India and some are more expensive. Overall it is a wash.
this will Discourage local manufacturer and also creates competition at the same time
We condemn the product invasion of India into our territory, lol.
@Farhan Zaheer:
Actually it is a landmark decision for Pakistan!
India had given the titel to Pakistan nearly two decades ago.
@mentelisco: "I have seen how you have taken over BD markets, cheap low quality products made in sweatshops."
If they are cheap low quality products, people do not have to buy them. Secondly sweat shops in India out competing Bangladesh? Are you serious? BAsically you are saying that Indian labour is cheaper than Bangladeshi labour. Where are you getting your facts from?
The products India sells to Bangladesh are not the ones that Bangldesh used to export to ANY country. When it comes to textiles - which is Bangladesh's primary export to the world, it is competitive with India as well and BD textiles come to India not the other way around.
When is India going to open their markets for our products? How about subsidies to Indian producers and all the other restrictions. Go ahead and look at the numbers for Bangladesh exports to India and tell me why the imbalance.
India is a incorrigible fool and stupid to continue to give concessions to Pakistan in expectation and promise of reciprocation that never ever materializes and is always out their in the distant future that never comes.
Godspeed!
@mentelisco: What mess? Ad homieums with no substance. You obviosly have no clue about the effects of competition on societies. After Indian market was opened to foreign countries with superior products in the ninties, the same sort of whining was heard in India too from people like you. Thanks to that act, Indian companies have evolved and have shown that they can compete and even beat products from other countries. So stop being a scared puppy and let the Pakistani companies get some competition so they can evolve and up their game. Competing with your brotherly Arabs wil only keep you down at their level.
Ending Pakistan's trade restrictions with India or India's trade restrictions with Pakistan must be done on a trial basis for a limited time. It should be win-win for masses on both sides of the border and not fill some specific pockets. It should be 3rd part reviewed and monitored. If it achieves the "set goals" then do more. If results are lower than expected then make corrections. If its one sided then move on to other initiatives.
its easy to throw out theories from text book, just look at the Indian mess in Bangladesh and SriLanka.
@mentelisco:
What has India done to Bangladesh and Srilanka???
Be kind enough to enlighten me, Sir.
Landmark decision for the people of both countries who can now get efficient products in less price tags. Now, the companies from both countries improve the quality of their products for competition.
This will also help the efficient companies who can import cheap raw material from the other country and earn more profits.
The world is heading towards regional trade, why not the two big countries of South Asia?
@mentelisco: Dude, please talk sense... we have signed FTA with worlds biggest and cheapest exporter CHINA, that has almost completely destroyed local industries. Millions of jobs are lost as small and medium business are all closed by cheap chinese imports, and the big business are nose deep in chinese loans. If you have to worry, then worry on the current bleak situation and how the chinese have total control of our economy. Lets talk about India when we see the real facts later.
@amused: yeah right, and what aboout the "aam economy" of pakistan and what about the "aam industry". I have seen how you have taken over BD markets, cheap low quality products made in sweatshops.
Wouldn't be surprising if India becomes Pakistan's biggest trading partner in a few years.
This is very positive step. It will benefit people of both countries
So it is final India takes over Pakistani business, thats if there is any.
get ready to be eaten by the indian like they have done to bangladesh and srilanka. thankyou govt for your last blow!
Good move... !!! Hope it works out well for both countries