More trade with Pakistan after most-favoured nation status: Officials

NEW DELHI: India's trade liberalization with Pakistan will only move after Islamabad honours its commitment to open up border trade and grant most-favoured nation (MFN) status, officials said on Monday, indicating New Delhi's tougher stance in the wake of escalated tension at the border.


Sources told TOI that the Trade & Economic Relations Committee (TERC) headed by Prime Minister Manmohan Singh, which met on Monday, reviewed India's trade relations across the globe and Pakistan was one of the issues on the agenda. While trade ties in Saarc were seen to have improved, Pakistan appeared to be the only weak spot as even the democratically-elected government had failed to implement what was agreed at the level of commerce secretaries in September 2012.

In fact, the Pakistan government has now linked improved trade relations with political talks, including demilitarization of Siachen and a solution to Sir Creek dispute. "We sincerely want to move forward on trade but at the moment it seems that it is not really defensible in Parliament and in front of the people unless there is some political movement... One step forward on political issues will yield five steps forward on trade and economic issues," Pakistan's junior trade minister Khurram Dastgir Khan had told Indian reporters in Karachi in September.

India, which has gone beyond its commitment and reduced the sensitive list by 30% to 614 items, is now insisting that Pakistan reciprocate. If Pakistan grants MFN and removes all restrictions on trade through the land route at the Wagah-Attari border, the sensitive list will be pruned by another 30% and then reduce it to just 100 items. "We are ready with our list and it will be of interest to Pakistan but for that Pakistan has to show some urgency and meet its commitment," said a senior government official.