After Liberty Gate, Pakistan, India opens Trade-Gate at Wagah Border

In an apparent bid to enhance bilateral ties between the neighboring countries, Pakistan and India on Friday opened Trade-Gate at Wagah Border.

Giving positive response, India not only permitted Foreign Direct Investment (FDI) from Pakistan but also inaugurated a second Integrated Check Post (ICP) on the border at Attari.

Indian Commerce Minister Anand Sharma after holding a meeting with Pakistan’s counterpart Makhdoom Amin Fahim observed, “As part of the initiatives to promote trade, India has in principle agreed to allow FDI from Pakistan”.

The procedures and necessary requirements for allowing investments from Pakistan were in the formulation stage and would be notified soon, he added.

However, the procedure is expected to be far from swift since it is not just a negotiation between the bordering states but also among various ministries within India.

Although India is badly needed an injection of foreign investment in civil aviation, but according to experts the chances of permitting Pakistani FDI in civil aviation were thin.

Furthermore, India and Pakistan have showed agreement to allow the opening of each other’s bank branches in their territories to facilitate financial dealings and ensure smooth traffic.

According to the minister, a very positive situation has emerged after State Bank of Pakistan (SCP) and the Reserve Bank of India (RBI) had held several rounds of talks in this regard.

The India minister commented, “Both RBI and SBP are in favour of opening up of branches on both sides of the border”.  Later, Pakistani counterpart endorsed the statement, saying that both sides were on the same page on this issue.

Following the practical steps taken by Pakistan, India would also carry out a review of the sensitive trade list during the next few months as a confidence-building measure; Sharman said announcing that an India-Pakistan Business Council will be established in a little while.

Speaking at the occasion, Amin Fahim said that talks were in process between the two countries on exploring opportunities of textile sector.

He asserted, “We have also decided to open up negotiations in the hospitality, education and tourism sectors and experts would be constituted to work out the modalities for talks”.

The political and business leadership of duo states gathered at the Indian side of the border at Attari, near Amritsar, to inaugurate a second Integrated Check Post (ICP).

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Posted by Faisal Farooq on Apr 14 2012. Filed under Business, Latest News, National, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.