The Hindu Business Line : Pakistan `allows' duty-free import of meat, vegetables

ISLAMABAD'S reported decision to allow duty-free direct import of meat and certain vegetables from India and other neighbouring countries, to tide over domestic shortage, has been cautiously welcomed by the Commerce Ministry since official confirmation is yet to arrive.

The decision by Pakistan to allow duty-free import of beef and mutton and tomato, onion, garlic and potatoes from neighbouring countries, including India and China, to meet the domestic demand and to rein in prices, would definitely help enhanced export of these items.

When contacted, Mr K.T. Chacko, DGFT, told Business Line: "India adopts a guarded policy on livestock export in order to protect the seed pool and any export needs to get approved by the Department of Animal Husbandry," though meat and meat preparations could be exported.

However, he welcomed the decision to source more Indian goods, which would help place bilateral relations on a better footing.

The apex chambers of commerce and industry too could not immediately react to the development.

Latest official statistics show that India's exports to Pakistan during the first eleven months of 2004-05 saw growth of 85 per cent at $439.49 million from $237.73 million in the corresponding previous period.

On the other hand, imports from Pakistan during the period amounted to $85.60 million, compared to $54.43 million earlier, marking a growth of 57 per cent.

As the balance of trade is decidedly in favour of India, the permission to source more imports would only boost official trade flows from India, according to trade policy experts.

Currently, Islamabad restricts imports from India to a list of 768 items; the permitted items include minerals, chemicals and other raw materials and most manufactured finished goods, machinery, bulk drugs and pharma products, and textile products. Food items are out of the list.

Now, in the backdrop of the composite dialogue India and Pakistan have been having and in the light of the recent visit of the Pakistani President, Mr Musharaff, the recent permission augurs well.

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Pakistan `allows' duty-free import of meat, vegetables — Cautious welcome from Commerce Ministry