Pakistan to give MFN status to India, with a condition
Updated: Jan 27, 2014 02:02:04pm
New Delhi, Jan 27 (KNN) Pakistan will grant India the most favoured nation (MFN) status from next month with a condition that India announces lower duties on 250-300 Pakistani items, according to Dawn News.
After getting an assurance for market access, MFN status will be granted to India through the issuance of a statutory regulatory order (SRO), a high-ranking official in the ministry of commerce told Dawn.
The MFN status means abolishing the negative list of 1,209 items, it added.
Pakistan has sought access for 250-300 of its items at lowered duties, and has handed over the list to the Indian government.
Pakistan People’s Party government had opened the market for Indian products in 2012, but due to the general elections there last year, the deal was not fully closed.
Pakistan’s Commerce Minister Khurram Dastagir Khan said the Wagah border in Punjab would be declared a dry port by the end of February.
The move came after the recent trade talks between Indian Commerce Minister Anand Sharma and Dastagir.
The NDMA has been suggested as a new name for MFN in an attempt to reduce the political fallout.
But, Dastagir Khan said, this can only happen if India gives market access to products identified by Pakistan.
These items have been listed in the sensitive list of South Asia Free Trade Area (Safta). Textiles and chemicals, which form the bulk of these products, are currently subject to higher duties by India, according to the report.
According to some Pakistani media reports, some of the traders of the country too are dissatisfied with the decision.
“India granted MFN status to Pakistan in 1996 but trade balance remained heavily in favour of New Delhi. Since 2008, the deficit has almost increased by four times in favour of India, according to a leading industrialist who had been a former office-bearer of the Lahore Chamber of Commerce and Industry,” a Pakistani media reported. (KNN Bureau)
After getting an assurance for market access, MFN status will be granted to India through the issuance of a statutory regulatory order (SRO), a high-ranking official in the ministry of commerce told Dawn.
The MFN status means abolishing the negative list of 1,209 items, it added.
Pakistan has sought access for 250-300 of its items at lowered duties, and has handed over the list to the Indian government.
Pakistan People’s Party government had opened the market for Indian products in 2012, but due to the general elections there last year, the deal was not fully closed.
Pakistan’s Commerce Minister Khurram Dastagir Khan said the Wagah border in Punjab would be declared a dry port by the end of February.
The move came after the recent trade talks between Indian Commerce Minister Anand Sharma and Dastagir.
The NDMA has been suggested as a new name for MFN in an attempt to reduce the political fallout.
But, Dastagir Khan said, this can only happen if India gives market access to products identified by Pakistan.
These items have been listed in the sensitive list of South Asia Free Trade Area (Safta). Textiles and chemicals, which form the bulk of these products, are currently subject to higher duties by India, according to the report.
According to some Pakistani media reports, some of the traders of the country too are dissatisfied with the decision.
“India granted MFN status to Pakistan in 1996 but trade balance remained heavily in favour of New Delhi. Since 2008, the deficit has almost increased by four times in favour of India, according to a leading industrialist who had been a former office-bearer of the Lahore Chamber of Commerce and Industry,” a Pakistani media reported. (KNN Bureau)
Loading...
