ISLAMABAD, Sept 21:
India and Pakistan are exploring possibilities to enhance telecommunication and air linkages to boost bilateral ties and trade.
The issues came up for discussions during the two-day Commerce Secretary level talks here. Commerce Secretary S R Rao held the 7th round of talks on commercial and economic co-operation with his Pakistani counterpart, Munir Qureshi.
Preliminary discussions were held on possibilities of better telecommunication linkages keeping in view the requirements of business communities on both sides for international roaming facilities, a joint statement said.
“It was agreed that separate sub-groups on either side would take forward this dialogue. Commerce secretaries would review thereafter,” it said.
Both the sides also discussed ways to improve air connectivity between New Delhi and Islamabad.
“It was agreed that a Joint Working Group would be formed before 15th November, which would work out a more liberalized regime of reciprocal bilateral rights for commercial flights, to ensure economic viability of this air route,” it said.
The statement said this JWG would also explore mechanisms for more efficient courier services.
It was said that against an average of about 23 flights per week between New Delhi and other important national capitals of the SAARC countries, there is as yet no direct air connectivity between New Delhi and Islamabad.
Both the sides also signed three agreements for cooperation in customs matters, redressal of trade grievances and conforming to quality standards. The step would further normalise economic relations between the countries.
“These agreements are expected to substantially facilitate bilateral trade mechanisms,” the statement said.
These pacts are aimed at streamlining trade between the countries and seeking to remove irritants that have prevented bilateral trade from realising its potential.
The joint statement said both sides expressed satisfaction on signing of the agreements and directed the relevant authorities to frame rules and procedures to fully implement these agreements.
During the talks, Qureshi said certifications, licensing and lab testing are not the only non-tariff barriers (NTBs).
He said issues like delays in customs clearance, non availability of railway wagons for cargo transport, absence of direct flights or any problem which delays the clearance of goods with no end results or change, faced by importer/ exporter is an NTB.
He reiterated that concrete solutions for all such issues are crucial for ensuring market access in the Indian markets for Pakistani exporters.
Further, it said, that in order to frame rules and procedures to implement the two agreements signed between the Customs Authorities, it was agreed that joint working group on customs would meet in the following month either at Karachi or Mumbai.
It was also agreed that on the same pattern as mutual recognition agreement between Bureau of Indian Standards (BIS) and Pakistan Standard and Quality Control Authority (PSQCA), another pact between Export Inspection Council of India (EIC) and PSQCA would be signed.
“Both sides have already exchanged the draft texts and it was agreed to complete the internal approvals before the next meeting of the Commerce Secretaries,” it said.
Further, it said, that in order to frame rules and procedures to implement the two agreements signed between the Customs Authorities, it was agreed that joint working group on customs would meet in the following month either at Karachi or Mumbai.
The statement said Pakistan has informed that summary for removal of restrictions on trade through land route has been moved to the Cabinet and said a decision to this effect is expected to be notified before October end.
It said Pakistan would transition fully to Most Favoured Nation (MFN) status for India by December as agreed earlier.
Both the sides also agreed to reduce their sensitive list under the South Asian Free Trade Agreement (SAFTA).
“…Before the end of 2017, India and Pakistan would have no more than 100 tariff lines in their respective SAFTA sensitive lists. Before end 2020, except for this small number of tariff lines under respective SAFTA sensitive lists, the peak tariff rate for all other tariff lines would not be more than 5 per cent,” it added.
As a part of this round of talks, representatives of the Civil Aviation Authorities of both the countries undertook discussions to ensure better air connectivity between New Delhi and Islamabad.
“It was noted that against an average of about 23 flights per week between New Delhi and other important national capitals of the SAARC countries, there is as yet no direct air connectivity between New Delhi and Islamabad,” it said.
It was agreed that a Joint Working Group would be formed before 15th November to work out a more liberalised regime of reciprocal bilateral rights for commercial flights, to ensure economic viability of this air route.
This JWG would also explore mechanisms for more efficient courier services, it said.
Further, preliminary discussions were held on possibilities of better telecommunication linkages keeping in view the requirements of business communities of both sides for international roaming facilities.
“It was agreed that separate sub-groups on either side would take forward this dialogue. Commerce Secretaries would review thereafter,” the statement said.
It said both the sides expressed satisfaction with the progress made in the bilateral trade relationship since last round of talks in New Delhi in November 2011.
Commerce Secretaries appreciated that better trading opportunities provided through land route would enhance mutual prosperity of the business communities and consumers of both sides of the border.
“They however, noted that there is need to further strengthen infrastructure on both sides.
“They directed the customs and the port authorities to resolve all the issues through mutual cooperation, harmonisation of customs procedures, provision of laboratory facilities, scanners, weigh bridges, cold houses, containerised services and automation of the business processes,” it said.
It said that for this purpose, meetings of the Customs Liason Border Committee (CLBC) would be held on monthly basis.
The two sides decided that outreach programmes may be held with the business communities on both sides, regarding the new investment opportunities, application procedures and regulatory issues.
It was reiterated that the road map drawn in the earlier Ministerial meetings, for liberalised and preferential trade regimes would be scrupulously adhered to.
To further deepen the preferential arrangements under SAFTA and to provide level playing field to Pakistani exporters in comparison to concessions allowed by India under SAFTA to rest of the countries in the SAARC region, both sides developed a long term plan, it added.
The Secretaries also reviewed the progress on issues such as enhanced trade for petroleum products, trade in power and reciprocal opening of Bank branches.
They asked the relevant stakeholders on both sides to speed up the mutual consultations so that concrete progress is achieved within the next six months.
During the review, India informed its willingness to consider export of gas up to 5 million cubic metres per day, for an initial period of five years.
The CLBC would also explore the possibilities of organising meetings between the relevant importers and exporters at Wagah-Attari border, it said adding it was decided that this Land Customs Station would operate seven days a week, the statement said.
Both the sides emphasised on the need to carry more trade traffic through the railways.
For this, it was agreed that the Railway Ministries of both the countries would hold joint coordination meetings on a monthly basis, at the appropriate levels.
Issues on availability of sufficient number of rakes for interchange was also highlighted by the Pakistan Railways.
“It was noted that the earlier agreed provision of 3-4 interchanges a day has not been adhered to due to current trade patterns.
“A viable solution is to allow High Capacity Wagons (HCW) from Pakistan which carry three times more load than the regular wagons,” it said adding the Indian Railways agreed that specifications already provided by the Pakistan for HCW would be examined and conveyed accordingly within two months.
On exploring the possibilities of opening new land routes for trade, Pakistan informed that a working group on Munabhao-Khokhrapar has been constituted. Indian side has already conveyed constitution of a working group.
It was agreed that meeting of the group on Munabhao- Khokhrapar would be held in October at New Delhi.
On FDI, Pakistan sought clarifications on investment through “Government Route” and its implications for investment by its investors in India.
Both sides agreed to encourage two-way investment and to enhance investor confidence.
Pakistan said that India’s offer on BHEL has been received and is under active consideration.
“BHEL (an Indian PSU) made an offer to cooperate with the Pakistan side in setting up 500 –2000 MW capacity in coal/hydro or Gas power plants, as per their requirements,” it said.
India also indicated its willingness to cooperate with Pakistan in areas of wind and solar energy.
India made an offer for meeting the requirements of Pakistan Railways for up to 100 locomotives.
Further, Pakistan also emphasised to cooperate in SMEs. It said that sectors like surgical instruments, cutlery, fans, leather and marble products have a huge potential for trade.
The Secretaries directed TDAP and ITPO to provide better guidance to chambers and business people on customs procedures, import regulations and ways to organise exhibitions.
To form a Joint Business Council (JBC) as an additional institutional framework for regular and sustained dialogue between the business communities, India and Pakistan agreed to exchange names of 10 prominent business persons from each country for the purpose within a month.
“The endeavour would be to have a first meeting of this JBC before December and its recommendations would be duly considered for taking forward the ongoing trade and investment dialogue,” it said.
“The JBC would also explore measures for increasing other related activities between the people of both countries”.
Both sides also reviewed possibilities of greater trade cooperation in sectors of agriculture and information technology.
“Relevant stake-holders would be encouraged to take forward economic cooperation in these areas. Cooperation for increasing cotton yield in Pakistan through trials of suitable Bt cotton seeds, would be given more focused attention,” it added.
The 8th round of talks would be scheduled to take place in India in April 2013.
In the meantime, co-chairs of the JWG on economic and commercial cooperation and Joint Secretaries of Commerce of India and Pakistan would meet in December at Islamabad. (PTI)
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