Pakistan has put off adding some 150 items for import from India, following the new wave of tension between the two countries. Last week, Pakistan and India expelled two senior diplomats declaring them persona non grata. This came after India postponed a scheduled foreign secretary-level meeting between the two countries after the Mumbai blasts that killed around 200 people.
Days before the diplomats’ expulsion, however, foreign secretaries of both the nuclear armed neighbours had a meeting in Dhaka on the sidelines of a preparatory conference for the Saarc summit to be held in India.The diplomats’ expulsion renewed a war of words between the two countries, who have fought three major wars on the Kashmir issue. The process of expanding the "Indian importable items" list has been suspended lately amid growing tension between the two neighbouring countries, official sources said.
The ministry of industry and production, the sources said, had forwarded a list of 150 items for inclusion in the list of importable items from India but the government has delayed action on the plan. Most of items in the list are either machinery or industrial raw materials, not being manufactured in Pakistan.
A ministry official confirmed that the ministry had sought expansion in the existing 775 importable item list, but the matter has been put on the back burner as the final decision for approval lies with the Economic Coordination Committee. "Inclusion of any item in the import list, forward by any trade organisation, requires a political will which is missing owing to growing tension between the two nations," said the official.
Around 14 proposals have been forwarded to the commerce ministry and meetings with the high-ups were being held to finalise the list. The ministry of industry has recommended amendments to the Import Policy Order 2005 to meet the trade-related investment measures after the auto sector switched over from deletion programme to tariff-based system in the Budget 2006-07, which the Central Bureau of Revenue (CBR) has implementing from July 1.
In this respect, a detailed discussion within the commerce and industry ministries has been held to make sure that none of the 150 items included in the list are being manufactured locally. The meeting said the import of these items from India would be cost-effective, particularly in terms of freight charges and the products will take less time in reaching Pakistani market.
Days before the diplomats’ expulsion, however, foreign secretaries of both the nuclear armed neighbours had a meeting in Dhaka on the sidelines of a preparatory conference for the Saarc summit to be held in India.The diplomats’ expulsion renewed a war of words between the two countries, who have fought three major wars on the Kashmir issue. The process of expanding the "Indian importable items" list has been suspended lately amid growing tension between the two neighbouring countries, official sources said.
The ministry of industry and production, the sources said, had forwarded a list of 150 items for inclusion in the list of importable items from India but the government has delayed action on the plan. Most of items in the list are either machinery or industrial raw materials, not being manufactured in Pakistan.
A ministry official confirmed that the ministry had sought expansion in the existing 775 importable item list, but the matter has been put on the back burner as the final decision for approval lies with the Economic Coordination Committee. "Inclusion of any item in the import list, forward by any trade organisation, requires a political will which is missing owing to growing tension between the two nations," said the official.
Around 14 proposals have been forwarded to the commerce ministry and meetings with the high-ups were being held to finalise the list. The ministry of industry has recommended amendments to the Import Policy Order 2005 to meet the trade-related investment measures after the auto sector switched over from deletion programme to tariff-based system in the Budget 2006-07, which the Central Bureau of Revenue (CBR) has implementing from July 1.
In this respect, a detailed discussion within the commerce and industry ministries has been held to make sure that none of the 150 items included in the list are being manufactured locally. The meeting said the import of these items from India would be cost-effective, particularly in terms of freight charges and the products will take less time in reaching Pakistani market.