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Last minute glitches seem to have delayed Pakistan's transition to a negative list approach, a move which would have allowed all items other than those on the list to be freely exported from India to Pakistan, leaving India Inc disappointed.
Pakistan's Cabinet deferred the matter because all the stakeholders were not on board, Ms Firdous Ashiq Awan, Federal Minister for Information and Broadcasting, said adding that the interior and textile ministries had certain issues.
According to an official statement issued by the Pakistan Press Information Department, “The Cabinet considered and directed the Ministry of Commerce to consult all stakeholders before the preparation and finalisation of negative and positive lists for trade with India.”
However, the Cabinet approved the signing of cooperation and mutual assistance in customs matters agreement, bilateral cooperation agreement on mutual recognition between Pakistan Standard and Quality Control Authority (PSQCA) and Bureau of Indian Standards (BIS) – which would help the cement industry – and agreement on redressal of trade grievances between Pakistan and India.
The three memorandums of understanding are expected to be signed during the bilateral meeting between the Commerce Ministers of India and Pakistan in Islamabad on Wednesday.
According to reports in the Pakistan media, the cabinet was to consider a proposal to allow the commerce ministry of Pakistan to replace the positive list of 1,963 with a negative list of 636, for imports from India.
The negative list will be phased out in three instalments on a quarterly basis with quarters ending on June 30, September 30 and December 31, 2012.
The sectors on the list included food and agriculture, minerals; chemical; pharmaceutical; plastics; rubber; paper and wood; textile and clothing; ceramics; iron and steel; and auto.
Last year, Pakistan's Cabinet had given a mandate to its Commerce Ministry for complete normalisation of trade with India.
The FICCI President, Mr R.V. Kanoria, said, “I don't think the sentiments of the business community are being correctly understood…while the businesses are thinking of partnerships, but politically, they are not acting…”
Asked if he will take up the issue with the political authorities at the bilateral meetings in Islamabad, he said, “We will convey this to the political leadership of Pakistan.”
The CII President, Mr B. Muthuraman, said, that though the industry is disappointed, he was hopeful it will come through. “At least we have started a conversation,” he said.
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