Commerce Minister Anand Sharma's visit to Pakistan: Wait for negative list just got longer

LAHORE: Pakistan has ruled out a switchover to a negative list during the ongoing visit of commerce minister Anand Sharma.

Pakistan's commerce minister Makhdoom Amin Fahim told reporters on Monday that he did not want to set a fresh deadline. "If we set a new deadline today and tomorrow we slip, it will not be good."

However, consultations were on and the country would try to honour the February deadline, said Fahim, who received his counterpart, Sharma, at the Wagah-Attari border on Monday.

Fahim's statement comes on a day when Pakistan's Supreme Court indicted Prime Minister Yousuf Raza Gilani for contempt of court, a development that is likely to impede a meaningful dialogue on establishing normal trade ties between the two often hostile neighbours.

Sharma and Fahim, however, said a new liberal visa regime for business travellers would be announced soon. "Both sides have exchanged drafts and a formal announcement will be made soon," Sharma said.

India admitted it had lagged behind in setting up an integrated check post at Wagah to facilitate movement of goods from Pakistan. "I have told Mr Fahim that we will be ready by April 30," Sharma said.

Political compulsions have restricted direct trade between the two countries. Pakistan imports just 1938 items from India, based on a positive list, against 9,000 items from other countries.

The proposed negative list is expected to be much shorter and will allow import of more Indian goods. The culmination of the trade liberalization process would be the grant of most favoured nation status to India, warranted both under the WTO and Safta. India granted MFN status to Pakistan in 1996.

"Our cabinet has already approved grant of MFN to India. Now we are moving towards implementing it. Processes take time. Both sides are discussing it," Fahim said.

Indian businessmen who have accompanied Sharma on the four-day visit said the process of opening up trade would be long drawn.

Lalit Suri Hospitality Group's Jyotsna Suri said the bonhomie between the two was a good signal, but it will take time to build confidence. India's automobile industry is hoping that Pakistan allows import of automobiles and parts when it moves to the negative list, but the local industry is reportedly resisting the move.

This correspondent is in Lahore at the invitation of FICCI.