News
Thursday, November 03, 2011
Pakistan grants India MFN trade status
* Status will remove discriminatory higher pricing and duty tariffs that stand as barriers to export between neighbours
ISLAMABAD: The federal cabinet on Wednesday unanimously granted Most Favoured Nation (MFN) status to India, deciding also to obtain parliamentary approval for the decision later on.
The Ministry of Commerce apprised the federal cabinet on the current process of trade normalisation between India and Pakistan. The cabinet fully endorsed the efforts of Ministry of Commerce for complete normalisation of trade relations and directed them to implement in letter and spirit the decisions taken in this regard. The cabinet gave the Ministry of Commerce the mandate to take the process of normalisation forward, which would culminate in the observance of the MFN principle in its true spirit.
Minister for Information Dr Firdaus Ashiq Awan informed a post-cabinet briefing that the Cabinet meeting, chaired by Prime Minister Yousaf Raza Gilani, took a unanimous decision for granting MFN status to India after a comprehensive briefing by the commerce secretary on economic benefits of bilateral trade between the two countries and alleviation of some members concerns over relations with India on political, defence, strategic and Kashmir issues. The minister said that parliamentary approval of the decision would also be sought.
She said that the decision taken by the Cabinet would also legalise the ongoing illegal trade of Indian goods to Pakistan through Dubai and termed the decision according to philosophy of Quaid-e-Azam.
Commerce Secretary Zafar Mehmood stated that the decision had been taken to normalise trade relations between the two countries, which would ultimately lead to MFN status. The commerce secretary further stated that both countries would have to disband non-tariff barriers to move towards normalisation of trade and explained that it was not something new as both the countries had enjoyed MFN status from 1947 to 1965 and had signed four agreements.
Being the signatories of the General Agreement on Trade and Tariff (GATT), he said that both the countries were bound not to involve in discriminatory attitude in trade with any of the member countries.
“It’s a very powerful step, and a welcome step in the right direction,” Indian Trade Secretary Rahul Khullar told Reuters in New Delhi. “It’s good for business. It’s good for commerce, and most importantly it increases confidence on the economic front that both Pakistan and India are committed to moving the social and trade agenda forward.”
The information minister also said that Aghaz-e-Haqooq-e-Balochistan Package was the second most important Cabinet agenda item with the objective to review the overall progress to ascertain how far constitutional and political reforms and fiscal, provincial and administrative autonomy in the Balochistan province have been achieved since the announcement of the package. The minister claimed that the meeting was informed by the Establishment Division that 80% implementation of the package have been achieved in all the areas.
She said the Cabinet was informed that resource allocation for Balochistan has been increased from Rs 43 billion in 2008-09 to Rs 108 billion in 201-12 and over 665 prisoners have been released from various jails under the political reforms, and dialogue for return of exile leaders has also been initiated. Majority of the resolutions, 21 of the total 27, have been implemented and power of coastal guards under custom act have been withdrawn. sajid chaudhry/agencies
Courtesy www.dailytimes.com.pk