Punjab wants the Centre to negotiate with Islamabad to boost exports to Pakistan through the land route, keeping aside the ongoing diplomatic stand-off following the Uri attack and the surgical strike.
Punjab said this would also improve India’s trade with countries that were part of Commonwealth of Independent States (part of the erstwhile Soviet Union, except Baltic States).
The Centre, however, thinks it may not be “appropriate” to take up this matter with Pakistan now.
At a meeting last month, Punjab said the Centre should “negotiate with Pakistan to reduce its negative list (items not permitted to be imported from India) and allow more items for export through the land route from Punjab.”
“This will reduce cost of transportation as Lahore is only 25 km from Punjab,” the State government said. “This will also ensure better access to CIS countries,” it argued. Punjab also wants to be invited by the Centre for future meetings with Pakistan on trade.
The Centre said in its response that given “the current state of bilateral relations, it may not be appropriate for the Indian side to take up the issues of concessions with the Pakistan side.”
The issue of inviting a representative from Punjab during the trade meetings would be taken up when trade and economic cooperation was discussed bilaterally, following resumption of dialogue.
Recently, Pakistan’s Minister for Planning and Development Ahsan Iqbal reportedly said that once the State Assembly elections in India (including in Uttar Pradesh) were over, the situation may improve for pursuing peace talks.
He also reportedly wanted India to consider joining the (over $50 billion) China-Pakistan Economic Corridor, instead of opposing the project.
Trade in goods between India and Pakistan was worth $1.32 billion in April-November 2016-17 and $2.6 billion in 2015-16. The trade balance was in India’s favour as its exports to Pakistan were $660 million and $1.7 billion more than its imports from that country in April-November 2016-17 and 2015-16. India-CIS goods trade was of the order of $7 billion in April-November 2016-17 and $9.43 billion in 2015-16.
The trade balance was in favour of CIS as India’s imports stood at $3.55 billion and $4.67 billion more than exports in April-November 2016-17 and 2015-16.
‘Revoke MFN’ demand
Following the Uri incident, there were demands for revocation of the Most Favoured Nation status given to Pakistan in 1996.
Pakistan, a member of the WTO, has not yet granted MFN tag to India (and Israel).
