Well-informed sources told Business Recorder that the removal of tariff and non-tariff barriers would be on top of the agenda, in addition to expansion of current level of trade. According to initial information, Pakistani business delegation will reach Mumbai on September 26, 2011 on a five-day visit.
Commerce Ministry believes that the resumption of the composite dialogue and simultaneous progress on all the issues will establish a platform for sustainable growth in relations between the two countries. As a follow up to the composite dialogue round, considerable progress has been made by the two countries for provision of enabling environment to the business communities on both sides of the border.
Prime Minister, Syed Yousuf Raza Gilani, recently informed the federal cabinet that relations with India are moving in a positive direction. Working groups had been formulated to analyse initiatives agreed during the fifth round of Commerce Secretary level talks for bridging the two biggest economies of South Asia through regular business-to-business contacts.
On September 27, 2011, Commerce Minister will inaugurate business forum along with businessmen to businessmen meetings. The sources said Commerce Minister's visit would be useful for future commerce transactions between businesses, such as between manufacturers and wholesalers of the two countries on reciprocal basis.
"Pakistani community can benefit from cost effective and timely availability of sub components or raw material from India which can address supply chain issues of manufacturing industry of Pakistan as well as availability of one of the biggest markets for Pakistani products next door," the sources continued. Commerce Ministry argues that using B2B businessmen of the two countries can reengineer their supply chains and partnerships.
Pakistan maintains a positive list of 1945 items allowed to be imported from India. India side, sources said, would urge Pakistani Commerce Minister for transit facility to Afghanistan. While signing the suspended, Afghanistan Pakistan Transit Trade Agreement (APTTA), Pakistan had agreed with Afghanistan that it would give a side letter ensuring facilitation of trade between India and Pakistan at an appropriate time.
However, analysts maintain that each country should take the initiative to identify what injury, harm or loss could come to it or may start coming to it on account of the traffic in transit allowed to a land-locked country. There is no provision in the UN Charter or in any Convention, which prohibits a party to such an agreement from safeguarding its interests. Transit facility is allowed to land locked states through an agreement reached mutually by the parties.