Efforts deferred on Pakistan-India trade boost

PAKISTAN: Efforts to boost trade with India deferred

By Ahmed Abdullah | 23 January 2013

Efforts to open up trade between Pakistan and India by the end of 2012 have been deferred after concerns were raised by some industry sectors in the two countries.

Moves to remove trade and investment barriers had led to the signing of several agreements to normalise economic relations, including a liberalised visa regime and an Integrated Check Post (ICP) at the Attari border crossing.

Pakistan also promised to grant Most Favoured Nation (MFN) status to India, in return for the Indian government removing Non-Tariff Barriers (NTBs) to trade with Pakistan

India had also supported free access of Pakistani products to the European Union (EU), and lifted a ban on foreign investment from Pakistan.

Pakistan and India are both low cost textile producers with a combined middle class population of more than 1bn.

Experts hope that business between the two countries will rise to US$10bn in two to three years from the existing level of US$2bn, after trade has been opened up.

Sectors: Apparel, Fibres & fabrics, Sourcing