By IANS
New Delhi : Linking expansion in bilateral trade with the resolution of all outstanding disputes, including the Kashmir issue, Pakistan Thursday said it was ready to face any competition and demanded a level playing field for transacting trade with India.
“Let’s hope that we are able to resolve our political differences and create a conducive climate for enhanced economic cooperation,” Pakistan’s High Commissioner to India Shahid Malik told Indian businessmen here.
“It’s important that outstanding political issues are resolved,” he replied when asked whether it was business that should be driving politics rather than the other way round.
The interactive discussion was organised by the PHD Chamber of Commerce and Industry.
But even as the two sides try to bridge trust deficit over these issues, Pakistan was negotiating to export 60,000 tonnes of wheat to India, the envoy said.
Malik also linked the prospect of Pakistan opening up the South Asian Free Trade Agreement (SAFTA) to India with the resolution of political differences over key issues like Kashmir, which he stressed remained at “the heart of bilateral relationship.”
“The time has come to move from dispute management to dispute resolution,” he stressed.
“We are ready to discuss the positive list and non-tariff barriers faced by Pakistani exports to India. This has already been notified to the SAARC secretariat.”
“There is a continuous re-evaluation and reassessment of the positive list,” the envoy said, adding that a joint study group would meet soon to resolve issues relating to SAFTA.
When Sanjay Bhatia, president of PHDCCI, suggested that the present positive list that Pakistan is maintaining for imports from India should be replaced by a negative list, Malik said such issues have to be addressed by the composite dialogue process and the Joint Study Groups constituted by both the countries. He also referred to the Articles 19 and 20 of the SAFTA, which spell out the dispute settlement mechanisms.
Bilateral trade is expected to cross $1.5 billion this year.
Alluding to economic reforms undertaken by Pakistan, the envoy underlined that the businesses in his country are not afraid of facing competition from their Indian counterparts and demanded a level playing field for Pakistanis wishing to do business with India.
The existence of tariff and non-tariff barriers, high level of subsidy being given to agriculture sector and huge budgetary support extended to public sector undertakings by India are making it difficult for Pakistani businesses to enter the Indian market, he said.
Underlining that the potential for economic cooperation was “great”, the envoy said that there had been a “sea change” in relations between India and Pakistan over the last decade and signs of bilateral trade picking momentum were encouraging.
“The potential for economic cooperation is great. Bilateral trade has increased to over $1.2 billion registering an increase of 380 percent over the last three years.”
Replying to a question on granting Most Favoured Nation (MFN) status to India, Malik said such a decision would depend on how the larger political relationship evolves in the future.
But despite Pakistan not reciprocating India’s gesture in granting MFN to it, exports from India to Pakistan are three times higher than the other way round, he said.
The proof of the pudding lies in the eating, Malik remarked while demanding a “level playing field” for Pakistanis wishing to do business with India both in terms of tariff and non-tariff barriers.
Asked whether Pakistan was considering giving India transit rights to Central Asia, he said, “The overall issue has to be seen in the context of our political relationship.”