The Hindu Business Line : India, Pak to review air services, shipping pacts

The Commerce Minister of Pakistan, Mr Humayun Akhtar Khan (left), being greeted by the Minister for Commerce and Industry, M. Kamal Nath, and the Federation of Indian Chambers of Commerce and Industry President, Mr Onkar S. Kanwar, during a meeting with Indian businessmen in the Capital on Monday. — Kamal Narang

New Delhi , Sept. 19

INDIA and Pakistan will soon initiate a dialogue to renegotiate their existing aviation and shipping agreements, besides looking to liberalise the visa regime.

This was indicated by the Pakistani Commerce Minister, Mr Humayun Akhtar Khan, at an interactive meeting with captains of Indian industry.

"The visa regime is an issue that is going to come up for bilateral negotiations. It is my endeavour and that of the Pakistan Government that it would be liberalised as much as possible," he said.

The meeting had been jointly organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the PHD Chambers of Commerce and Industry (PHDCCI). He made it clear that all sections of society and not only business community should be able to visit each other freely.

On the civil aviation agreement, the Minister said that it is to be renegotiated shortly. Indications are that the Governments will give the nod to private sector airlines of the two countries to fly between India and Pakistan.

Currently, Pakistan International Airlines operates between Pakistan and India and Indian Airlines is the only airline from India operating in the two countries.

"We have no problem in having an open sky policy between India and Pakistan. Any of the airlines from India and those from Pakistan should be able to go to any destination in either of the two countries," Mr Khan said.

He added that the Governments of Pakistan and India were ready to take a re-look at the their existing shipping agreement and see how they could be improved. Mr Khan described the shipping agreement between the two countries as "grossly outdated".

On Indian industry's demand that Pakistan should have a negative list for imports from India. Mr Khan said his country has already signed the SAFTA.

"Negotiations are on schedule and I do not think there will be any stumbling blocks. It is going to come into effect from January 1 next year and be fully implemented in the next 10 years.

However, in respect of India and Pakistan, it will be implemented in about 5 years time."

The President of the India Pakistan Chamber of Commerce and Industry, Mr Onkar S. Kanwar, suggested that Pakistan should have a negative list of trade with India instead of having a positive list of only 769 items of import from India.

He suggested that items that Pakistan felt was in nascent stage and needed protection could be placed in the negative list.

"This will maintain your (Pakistan) comfort level while at the same time, vast areas of trade will open up," Mr Kanwar said.

Assuaging Pakistan industry's fears that any trade with India would hurt its manufacturing sector, the Commerce and Industry Minister, Mr Kamal Nath, said that India was looking at sustainable trade. "India is not keen to have trade relations with Pakistan that would hurt the manufacturing sector there. It should be a win-win situation for both countries," he added.

The Minister highlighted that India's imports from Pakistan has gone up by 150 per cent ($29.18 million) during April-August this year as against an export growth from India of 8 per cent ($155.18 million) during the same period.

He added that economic engagement was one of the most important ingredients in normalising relations with Pakistan.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page