The Hindu Business Line : India-Pakistan to explore cooperation in mutually beneficial areas

`Islamabad had consistently been exploring the ways to increase its trade with India, as this would be beneficial for the people of both the countries.'

New Delhi , Aug. 9

INDIA and Pakistan today resolved to explore cooperation in the areas of mutual benefit such as civil aviation, shipping, banking, and petroleum and natural gas as part of the ongoing Composite Dialogue between the two countries.

As the two-day official talks on commerce and economic cooperation got under way on Tuesday between the Commerce Secretary of India Mr S.N. Menon and the Acting Secretary - Commerce, Pakistan, Mr Syed Asif Shah here, the discussions centred on goods and services, besides evolving a roadmap for the Joint Study Group (JSG). The decision to set up the JSG at the Commerce Secretary level was taken at a bilateral meeting between Mr Kamal Nath, Union Commerce and Industry Minister, and his Pakistani counterpart Mr Humayun Akhtar Khan at Islamabad in November 2004. On goods, the discussion centres on expansion of positive list and transit routes, and on services it would be about air, shipping, road and rail services as also financial services including insurance and banking.

In his opening remarks, Mr Menon recalled that both the countries had already exchanged concessions in the four rounds of negotiations, which had fostered immense goodwill in the business circle. He said that even as New Delhi was conscious of the fact that concessions under the SAPTA (SAARC Preferential Trading Arrangement) have not led to much boost in trade in this region, the signing of SAFTA (SAARC Free Trade Area) has brought a new hope. He said that the successful negotiations on all outstanding issues such as rules of origin, indicative sensitive list, mechanism for compensation on revenue loss and technical assistance to least developed members among SAARC, such as Bangladesh, Nepal and Bhutan, would help to operationalise SAFTA from January 1, 2006.

He hoped that measures that could be undertaken such as liberalising visa restrictions on the travel between the two countries, simplifying the rules on shipping, making easier the shipment of goods by rail and road would have a very marked economic impact. While welcoming the Government of Pakistan to open the Wagah-Attari land route, Mr Menon hoped that Pakistan would consider opening of the same on a permanent basis for a larger number of commodities.

Mr Shah noted that the two countries had begun a process of de-escalation of tension with a view to normalising bilateral relations. He said Islamabad had consistently been exploring the ways to increase its trade with India, as this would be beneficial for the people of both the countries. Pakistan recently took the crucial decision to permit the import of onions, potatoes, tomatoes, garlic, live animals and halal meat from India via the land route of Wagah, which was followed by the inclusion of vaccine and medicines for the treatment of AIDS and cancer in the list of items importable from India. He said import of raw and refined sugar from India was also allowed through the land route from last week. He said that the efforts of both the countries must aim at "developing a model of win-win commercial relationship" and he said that Pakistan has come to the meeting "with an open mind as we have a desire to move forward on all components of the Composite dialogue in a constructive manner".

Both the sides noted the quantum jump in the volume of bilateral trade, which had reached $600.77 million in 2004-05, an official release said here.

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