The Hindu : Pak. Ministries divided over attending SAARC meet

Online edition of India's National Newspaper
Tuesday, Dec 24, 2002

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International

Pak. Ministries divided over attending SAARC meet

By B. Muralidhar Reddy

ISLAMABAD DEC. 23. The Pakistan Foreign and Commerce Ministries are divided over the issue of attending a SAARC conference, scheduled later this month in Kathmandu, to review the progress on the South Asian Free Trade Agreement (SAPTA).

"Serious differences have erupted between the Foreign and Commerce Ministries over the contentious issue of free trade with India as both have taken divergent positions on whether to attend a forthcoming regional conference at Kathmandu this month or not'', the English daily, The Nation, said in a front page report.

Quoting official sources, the daily said the Commerce Ministry was opposed to giving any "concessions" to India after it forced postponement of the SAARC summit proposed here in January. The Ministry reportedly felt that India was not serious in helping regional countries earn economic benefits through free trade. The report said Islamabad was yet to decide on its participation in the SAARC meet.

On the other hand, the Foreign Office officials think that Pakistan should not miss any opportunity to have a dialogue with India, as it would help reduce tension between the nuclear rivals.

The paper said that Pakistan was unlikely to extend any trade concessions to India until the Iranian President, Sayed Muhammad Khatami, completed his visit to India next month. Mr. Khatami arrived here today on a three-day visit for discussions with the Pakistani Government on a wide-ranging subjects.

"Already facing an uncertain future, the cancellation of the Kathmandu round of talks among the commerce secretaries would make a serious rupture in trade relations among the SAARC countries, whose close cooperation is the key to kick-start economic growth in South Asia," the daily said.

SAARC had pledged to provide free market access to member countries by 2003 through SAFTA.

To facilitate conversion to free market economy on the pattern of ASEAN and European Union, SAPTA was signed.

Under SAPTA, the regional countries give preference to trading goods among themselves.

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Pak. Ministries divided over attending SAARC meet