Pakistan MFN status for India soon

NEW DELHI: Pakistan is likely to grant most-favoured nation (MFN) status to India and an official announcement to this effect is likely to be made shortly. This was stated by Islamabad Chamber of Commerce & Industry president Muhammad Nasir Khan on Thursday.

This is significant as Pakistan has always linked the issue of extending MFN status to India to the resolution of the Kashmir issue. Extension of MFN status means establishment of normal trade relations between two countries leading to free flow of goods.

At present, Pakistan allows import of goods from India based on a positive list of about 1,000-odd items and restricts trade in all others. If it agrees to extend MFN status to India, it would start trading with India on the basis of a negative list which means that import of all Indian items would be allowed except the handful of items included in the negative list.

Pakistan’s refusal to extend MFN to India has been a sticking point in the recently concluded SAFTA negotiations, with India approaching the SAARC Secretariat to sort out the issue. Addressing mediapersons at a conference organised by industry body Assocham Mr Khan said, “The issue of MFN status to India has been sorted out at the highest political level in Pakistan, and this would be conveyed to the government of India soon.”

Stressing on the need to open Wagah border to promote trade between India and Pakistan, Mr Khan said that Pakistan has wheat surplus to the extent of 40%. With the opening of Wagah border, increased demand for wheat in India could be met through cheaper imports from Pakistan which in turn would help contain inflation. Similar action needs to be taken on cement price in India which has increased substantially.

He said agricultural exports from Pakistan are likely to get affected as India and Pakistan have different seasons. Therefore, the two countries should sit across the table to make arrangement for exports and imports of agricultural products whenever required, at competitive prices. The Pakistan delegation led by Mr Khan will discuss all these issues with various ministries. He is also scheduled to meet the Prime Minister in New Delhi on Friday.