Return of normalcy likely in Pak-India trade relations

Islamabad

Any expectations of normalising trade between Pakistan and India is too much at the moment and far from ground reality, however, both sides are discussing ways and means to facilitate war-torn Afghanistan for boosting its trade and economy on the pressure of US and western world.

As India’s External Affair Minister Sushma Swaraj has been visiting Islamabad to participate into Heart of Asia Conference but one should not expect returning of normalcy in trade relations in one go between two nuclear arch rivals of South Asian region.

Although, Pakistan and India will have to sit on the negotiating table sooner or later in view of rapidly emerging changing economic realities where regionalism will become reality but first New Delhi will have to take steps to start the process of ice melting for moving towards the desired objective.

One top official involved in important parleys told The News on Wednesday that Afghanistan is demanding access of trucks through Wagha border to India and returning with goods for meeting its imports requirements as Kabul is asking for this facility under trilateral transit agreement as well as fresh Pakistan-Afghanistan Transit Trade Agreement.

The US, UK and European Union (EU) is asking Islamabad for ensuring regional connectivity for Afghanistan by establishing linkages between South Asia and Central Asia where Pakistan as well as Afghanistan should give access to each other for getting mutual benefits.

But Islamabad is so far reluctant to provide this major facility to Afghanistan by arguing that it is not yet ready to assent this major concession to Afghanistan for having direct access through Wagha border.

When Pakistan had struck trilateral transit agreement, it was done with this understanding that Islamabad would not allow transit facility to India for boosting its trade with regional states especially with Afghanistan.

Pakistan and Afghanistan high-ups are expecting to meet in Kabul in March 2016 so Islamabad will have to make-up its mind that how they will respond to the major demand of Kabul for allowing access of trucks through Wagha border.

On bilateral trade relations between Pakistan and India, first of all both sides would have to agree on resumption of composite dialogue process including trade ties.  Pakistan is asking New Delhi to remove its tariff and non-tariff barriers (NTBs) which are hampering in the way for boosting trade relations between the two sides.

Although, India had granted MFN status to Pakistan but its tariff and NTBs had blocked the way for improving trade for all practical purposes.

If India agrees to resolve all lingering disputes including Kashmir and other strategic issues and also moves towards eliminating tariff and non-tariff barriers then Islamabad can open up trade with India by barring few items putting into negative list.  On front of South Asian Free Trade Agreement (SAFTA), India will have to take lead for providing more incentives to other regional states for making SAFTA success story. If India restricts landlocked Nepal through unwarranted tactics then it should not expect from Islamabad for allowing using of transit route for boosting its trade in the region and up to Central Asian Republics (CARs).