A day after reports of Pakistan granting the Most Favoured Nation (MFN) status to India, there is still confusion as Islamabad has not issued any clear official statement on this matter.
New Delhi maintained that it was yet to receive a written official confirmation from Islamabad in this regard.
Sources in the Ministries of External Affairs and Commerce told
However, Commerce Ministry officials said Pakistan is expected to share the details when their Government delegation visits India for bilateral talks in the third week of this month.
What has transpired so far is that after the Pakistan cabinet meeting, their Information Minister, Dr Firdous Ashiq Awan, told reporters in Islamabad about their Cabinet decision to grant MFN status to India.
Following this, the Indian Commerce, Industry and Textiles Minister, Mr Anand Sharma, had a telephonic conversation with the Pakistan Commerce Minister, Mr Makhdoom Fahim, during which Mr Fahim confirmed to Mr Sharma about Pakistan's decision to grant MFN status to India.
The Indian Commerce Ministry officials said that usually it takes a few days after the Cabinet meeting, for the minutes to be signed by the Cabinet Secretary and reach the Government. Therefore, it should take a few more days for the Cabinet decision to be officially notified, they said.
However, on Wednesday, Mr Sharma said in an official statement that, “We deeply appreciate this positive gesture that Pakistan has taken which underscores with clarity the wish which both the Governments have,” which is to “bring about a paradigm shift in mutual relations.”
“Economic engagements, removing the trade barriers and also facilitating land transportation would help the region. It will generate jobs and bring prosperity and stability,” he said.
The Indian Commerce Ministry said Pakistan's decision was a result of Mr Fahim's recent successful visit to India on the invitation of Mr Sharma.
“An early date for Mr Sharma's visit to Pakistan will be found soon,” the officials said.
FIEO welcomes move
Mr Ramu S. Deora, President of Federation of Indian Export Organisations, said the MFN status would mean greater market access for Indian goods in Pakistan. Pakistan has so far given access only to 1,940 product lines on its positive list, he said.
He expressed optimism that the bilateral trade target set by both sides of $6 billion in three years (from the present level of $2.7 billion) could be achieved early.
Mr Deora observed that India would be able to diversify its export basket to Pakistan and supply the products directly to that country, adding that they are currently being routed through third countries.
On the other hand Pakistan would be benefited as they shall be able to source the same products at a reduced price bypassing the cost of burden of trans-shipment, he said.
Exports of manmade filaments, chemicals, tea, coffee, vegetables, plastic articles and rubber products would be able to increase their market share in Pakistan imports, observed Mr Deora.
However, he added that there is a need for relaxation of visa norms for business persons. He also said investment norms, non-tariff barriers should be relaxed to take the economic engagement to a new level.