Cabinet may approve customs cooperation pact with Pakistan tomorrow

NEW DELHI: The Cabinet is expected to give its approval to two agreements with Pakistan with a view to boost trade and economic engagement between the two countries.

These agreements relates to customs cooperation and redressal of trade-related grievances.

These pacts are aimed at streamlining trade between the countries. They seek to remove irritants that have prevented bilateral trade from realising its potential.

"The Cabinet will take up these issues tomorrow," sources said.

The memorandum of understanding on these matters was signed during Commerce and Industry Minister Anand Sharma's visit to Islamabad in February.

Under the customs cooperation agreement, India and Pakistan would be able to share trade data besides harmonisation of tariff lines.

Bilateral trade between India and Pakistan stood at USD 2.7 billion in 2010-11.

Both sides are set to hold Commerce Secretary-level talks next week. The Commerce Secretary-level talks started in November last year.

In a joint press statement of India and Pakistan Commerce Ministers on April 13, both the sides had expressed a desire that discussions may continue at the official level for possibilities of opening more land customs stations between both the countries.