LoC tensions: Pakistan will not grant MFN status to India

Minister of State for Education Balighur Rehman said the status will be made on the basis of mutual interests.

ISLAMABAD:

Pakistan will not grant status of Most Favored Nation (MFN) to India till tension exists on its eastern border, Minister of State for Education, Balighur Rehman told lawmakers on Thursday.

“We cannot grant MFN status to India at a time when there is tension on the border,” said Rehman while responding to a supplementary question by Pakistan Tehreek-e-Insaf (PTI) MNA Arif Alvi.

Alvi had advised the government to work on new strategy for promoting business relations with India. Rehman, however, did not explain how the government will modify the term MFN.



Speaking on behalf of the Minister of State for Privatisation, Rehman said a decision on giving India the status will be made on the basis of mutual interests, including the resumption of the composite dialogue process.

Relations between the two nuclear neighbours soured after killing of soldiers on both the sides along the Line of Control (LoC) last month. Islamabad and New Delhi have accused each other of violating the ceasefire.

Regarding delay in awarding the MFN status to India, Ministry of Commerce, in its reply, informed the National Assembly that Islamabad did not meet the timeline of December 31, 2012, because it was consulting with other ministries and also the private sector stakeholders to assess and evaluate a level playing field enjoyed by Pakistani exports to India. Non-tariff barriers being faced by Pakistani exporters and issues of market access of Pakistani products to India are also being considered.



“Elimination of the negative list after the approval of the Cabinet will imply the grant of MFN status to India,” stated the ministry. Responding to a question of MNA Rana Afzal of Pakistan Muslim League-Nawaz (PML-N), the minister counted various benefits of awarding MFN status to India, adding that consumers will gain access to goods at a competitive rate thus increasing purchasing power.

The ministry of commerce would bring the case for complete normalisation of trade relations with India to the Cabinet for approval after further negotiations with India. He informed the lawmakers that items under the negative list regime for trade with India had been reduced to 1,209 from over 2,000 items.

Opening of Khokhrapar-Monabao route for trade

Minister of Commerce Khurram Dastgir Khan said that a joint working group on this issue has been constituted, and internal consultations are in progress.

The first meeting of the group will be held after concluding internal consultations, he added. A decision on opening the Khokhrapar-Monabao route for trade was taken by the commerce ministers of Pakistan and India during their meeting in February last year.

Published in The Express Tribune, September 27^th, 2013.