Free trade with India after December 2012, Federal Cabinet

Free trade with India after December 2012, Federal Cabinet

On Wednesday, the Federal Cabinet has opened doors for free trade with India, increasing the number of products to be imported from 1,946 to 5,600.

The decision claimed superiority over the objections of Ministry of textile and industries, which had been forcing the government to restrict trade with India in order to save the local manufacturers.

The cabinet’s decision has allowed almost 90 per cent of all those products that India usually exports while before this decision only 17 per cent of Indian export goods were allowed to be imported in Pakistan.

It has also been unveiled that from January 1, 2013, India will be allowed to export its all commodities in Pakistan without any hindrance. In contrast, the ministry of textile and industries wanted to extend the restriction for the next five years.

Information Minister Dr Firdous Ashiq Awan told that the Cabinet had collectively decided to switch from the positive trade list to negative trade list with India.

“The products from negative list will be completely phased out by Dec 31.”

On the other hand, the ministry of industry proposed their reservations over the timing of staging out of the list while the commerce industry remained in disagreement with industries ministry’s proposal of phasing out in five years.

The information minister expressed that full fortification will be provided to the local industry and defence laws will be summoned in case of any loss to national manufacturers from the import.

“This perception should be dispelled that the Kashmir cause will in any way be compromised,” she said.

The decision was warmly welcomed by Indian Commerce Minister, Anand Sharma, who said, “I am happy that this has been achieved. We believe that strengthening economic engagement between India and Pakistan lies at the heart of building enduring peace and stability
in this region. Flourishing trade is the biggest confidence-building measure between any two nations.”

He said that it is a huge opportunity for Indian businessmen, as now they will be able to export their commodities to Pakistan by means of land, air and sea routes.

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Posted by Mursil Mehmood Butt on Mar 1 2012. Filed under Latest News. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry