India opens doors further for Pakistan
After allowing foreign direct investment from Pakistan, India has approved reduced sensitive trade list by 30% and also allowed Pakistanis to purchase shares in Indian companies.
Gilani, in a statement while commenting on the recently concluded successful visit of a Pakistani parliamentary delegation to India, said India’s decision to allow Pakistani investors to invest in that country and also permission to buy shares in their stock market, including opening of bank branches by the respective countries, were a significant development, he said.
India approved reduction of 30% (264 tariff lines) from the SAFTA Sensitive list for Non Least Developed Countries (NLDCs) allowing the peak tariff rates to reduce to 5% within three years, as per agreed SAFTA process of tariff liberalisation on August 17, 2012, according to a press statement issued by High Commission of India in Islamabad. This shall reduce India’s sensitive list for Pakistan from 878 to 614 tariff lines.
The bilateral trade dialogue with Pakistan resumed in April 2011. Sustained discussions at various levels resulted in the drawing of a roadmap for an uninterruptible and irreversible trade liberalisation process. India has also agreed upon a liberalised visa regime and opened Integrated Check Post to encourage two-way trade.
Both countries have held huge exhibitions in each others countries in a bid to boost trade. Official bilateral trade between India and Pakistan is just $2.7 billion annually and heavily tilted in New Delhi’s favour. But Indian and Pakistani business community have estimated that up to $10 billion worth of goods are routed illicitly, carried by donkeys through Afghanistan or shipped by container from Singapore and Dubai.
The Reserve Bank of India decided on August 22, 2012 that a Pakistani citizen may, with the prior approval of the Foreign Investment Promotion Board of India, purchase shares and convertible debentures of an Indian company, under Foreign Direct Investment Scheme. Such Indian company should not engage in sectors pertaining to defence, space and the atomic energy, adds the statement.
Published in The Express Tribune, August 26th, 2012.
COMMENTS (7)
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@Juzar Noorani:
The mistake is that no Nation should trade and trust an Nation,which has consistently abused and commited acts of terrorism via their proxies in neighbouring countries and yet has audacity to deny their deeds simply should be left to its own devices !
@Hedgefunder: You must be joking. There is no mistake in bilateral trade ties.
BIG MISTAKE From the INDIANS !
A big step forward toward peace and friendship indeed. Go India, Go Pakistan :-)
Pakistanis should look towards Saudi for huge financial returns. Its expected that next year, Saudi capital authority will allow foreigners to buy shares of local companies. That would mean exposure to companies like SABIC (biggest chemical producer in the world) etc. Don't take this as a anti-Indian rhetoric but as a simple suggestion. I believe there would be much complications for Pakistanis investing in india
I envy India's rise.
Both the countries have no option left except co- operating in all fields. In this scenario Pakistan has more to gain.Look at the singers from Pakistan They have minted Money in India Businessmen, film- makers etc. will have large territory and Govts of both the countries would have no option but to have cordial relations.