The Hindu Business Line : `Ease curbs on Indo-Pak cargo flows'

The Federation of Indian Export Organisations (FIEO) has said that bilateral trade between India and Pakistan would get an impetus and cargo flow between Indian and Pakistani ports could increase dramatically if the 1975 protocol is amended to lift the cargo restrictions imposed on both the countries.

Talks hailed

In a statement issued here on Saturday, the FIEO President, Mr O.P. Garg, hailed the resumption of talks between the two countries particularly aimed at amending the protocol to permit both countries' vessels to carry each other's cargo to different countries as well as allow third-country vessels to pick up cargo from each others' ports. This would help both countries to save cost and bring down transaction cost to their trade and industry substantially, he added.

Illegal trade

He said this would also be a major positive feature in bilateral trade as currently the two-way trade is taking place through the illegal channels through land borders, the circular or `informal" trade carried out through third countries and re-exported from there to Pakistan and the formal trade through official channels.

Mr Garg said given the fact that the two neighbours share a common border, they could gain a lot by mutual trading due to low freight costs once the amendment to the 1975 protocol is made. For instance, Pakistan imports iron ore from Brazil and Australia and tea from Kenya at higher prices. These items could be purchased at much cheaper costs by sourcing them from India. Similarly, he said, pharmaceutical products in India are about 30 per cent cheaper than in Pakistan and could fetch a good market, besides tea and coffee.

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