By IANS,
Islamabad : Pakistan’s petroleum ministry has proposed the facilitation for the import of petroleum products from India. The oil imports, however, would be conditional to New Delhi facilitating the export of Pakistani cement and chemicals without barriers, a media report said Wednesday.
Dawn reported that the petroleum ministry proposed granting India the ‘Most Favoured Nation’ status so as to facilitate import of petroleum products and export of cement and chemicals.
A commerce ministry official was quoted as saying that a ministry summary on the matter would be the basis of the two-day talks between the commerce secretaries of the two countries that begin Wednesday.
Indian Commerce Secretary Rahul Khullar arrived here Tuesday for talks to boost economic engagement between the two nations.
Khullar will lead the Indian delegation at the talks here April 27 and 28. Pakistani Commerce Secretary Zafar Mehmood will lead his country’s delegation.
The trade talks were suspended in the aftermath of the Mumbai terror attacks in November 2008.
Sources said oil imports would be conditional to India facilitating export of Pakistani cement and chemicals without any barriers.
The petroleum ministry had proposed granting India MFN status about two years ago and this week, it reiterated its position.
The country consumed about 21 million tonnes of petroleum products, of which about 85 percent was through imports.
The ministry is of the opinion that the country’s total diesel consumption of about 4.4 million tonnes can be met through imports from India where prices were lower, the media report said.
On an average, diesel is priced at Pakistani Rupees 92.90 per litre as against Pakistani Rupees 75.56 in India (Rs.40).
The ministry noted that India’s Bhatinda and Panipat refineries have a capacity of about 15 million tonnes and two refineries of the Reliance Industries have a capacity of 40 million tonnes, reported Dawn.
The proposal is to allow import through Wagah border by rail and road to meet diesel requirements in northern parts of the country and through the sea route for Karachi and adjoining areas.