Pakistan may move to negative list approach by month-end

Confident of clearing all road blocks coming in way of strengthening trade ties between India and Pakistan, the Commerce Ministers of the two countries said that Pakistan's transition to a small negative list approach could happen by month-end. A move that is likely to lead to MFN status for India by the year-end.

Mr Anand Sharma, Commerce Minister of India, said that following the deferment of decision by Pakistan's Cabinet on Tuesday on a small negative list that would have allowed all items other than those on the list to be freely exported from India to Pakistan, he spoke to his counterpart and was informed that there was an inter-ministerial meeting held and all Ministries were unequivocal in reaffirming support to their move to a negative list approach soon.

In a joint statement issued here on Wednesday, at the conclusion of official level bilateral talks the Commerce Ministers of India and Pakistan said, that the negative list will be phased out and the timing for this will be announced by February and at that time list of items will be announced. It is expected that the phasing out will be completed before the end of this year. The understanding is that when the transition to MFN is effected, all items other than those in the SAFTA sensitive list would get preferential access at peak tariff levels of five per cent by the end of the year, the statement said.

At the end of the bilateral talks the two neighbours signed initial agreements on cooperation and mutual assistance in customs matters, bilateral cooperation on mutual recognition between Pakistan Standard and Quality Control Authority and Bureau of Indian Standards, and on redressal of trade grievances between Pakistan and India.

VISA: On easy visa availability and people-to-people contact, a long standing demand of India Inc , Mr Sharma said, the two sides have identified national industry chambers — in case of India FICCI and CII — which will endorse the lists that will be accepted by the respective missions. Modalities are being worked out, he said. It has in-principle been decided to give multiple visa to businessmen for three years and that a decision will be taken soon.

BANKING: As regards opening of bank branches, the Reserve Bank of India and the State Bank of Pakistan will meet in the first fortnight of March to give finishing touches, he said.

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