Pakistan and India have agreed on opening bank branches in either country to facilitate and enhance trade between the two countries. The agreement was made during the two-day 4th Round of India-Pakistan talks on Economic and Commercial Cooperation within the framework of the Composite Dialogue held here.
The Indian delegation was led by Commerce Secretary, Shri G.K.Pillai and the Pakistani delegation was led by Syed Asif Shah, Secretary, Ministry of Commerce. The talks were held in a cordial and constructive atmosphere. The two sides recognized the satisfactory progress on the initiatives agreed during the Third Round of the talks held in Islamabad on 28-31 March 2006.
A joint statement issued at the conclusion of the talks said:-
Both sides emphasized the importance of having bank branches in either country to facilitate trade. Both sides agreed to finalise the processing of the applications for the two bank branches in either country within six months of the receipt of applications or by 31st December 2007 whichever is later.
To facilitate import of cement from Pakistan, the Indian side informed that India will complete all statutory certification related formalities on a fast track. The Indian side informed that it is also in the process of making appropriate policy changes to accept third party certification.
To facilitate import of tea from India it was agreed to facilitate and encourage the trading of tea through rail. Pakistan side noted the request for providing duty concessions on import of Indian tea,
Pakistan will nominate representatives to the Joint Working Group to discuss the issues relating to joint registration of Basmati rice as GI and the first meeting of the Group will be held at an early date. The Pakistan side raised the issue of Notification issued by India declaring ‘Super Basmati rice’ as an approved variety for export. India agreed to look into this issue.
The Indian delegation handed over a list of 484 tariff lines for inclusion in the Positive List of items importable from India. The Pakistan side agreed to examine the request in consultation with stakeholders.
The Indian side informed that a Task Force comprising of representatives from various ministries and departments of Government of India has been constituted to address the issues of Non-Tariff Barriers (NTBs) and para-tariffs. The Task Force will make recommendations in a time bound manner for removing these barriers to provide greater market access to all members of SAARC.
In order to address the issue of imbalance in bilateral trade, the Indian side invited the Pakistan side to identify twenty products of its export interest so that India could inform Pakistan about the detailed import regime on these products with a view to facilitating their import into India. Both sides will facilitate holding of trade exhibitions in each other’s country. The Indian side invited Pakistan to organize a “Made in Pakistan” Trade Fair in India.
A delegation from Pakistan was invited to visit India to see some of the IT-enabled tele-medicine facilities, with the objective of exploring avenues of cooperation in this field.
The Indian side agreed to convey a response by 30th September 2007 to the draft MOU on Assistance of Mutual Cooperation in Capital Markets conveyed by Security and Exchange Commission of Pakistan (SECP) to Security Exchange Board of India (SEBI). Both sides noted with satisfaction the progress made on laying of the optical fibre link and agreed to establish connectivity at an early date.
The Export Credit Guarantee Corporation of India Limited (ECGC) will provide detailed proposals for capacity development in the field of export insurance cooperation for consideration by Pakistan by 30th September 2007. The Pakistan side raised the issue of amounts outstanding against the Indian Post Office. The Indian side handed over an aide memoire to the Pakistan side. Both sides agreed to discuss the matter further for settling the issue.
The Indian side made a presentation on the state of development of Integrated Check-post (ICP) planned to be developed at Wagah/Attari Border at the Indian side. The Pakistan side also briefed on the state of infrastructure and proposed plan for development on its side. Both sides agreed to continue the exchange of information on the development of ICPs on either side.
Both sides noted with satisfaction the initiative to allow cross border movement of trucks, up to designated points at Wagah/Attari, for unloading/reloading of cargo. It was decided that the first technical level meeting to work out modalities would be held on 20th August 2007 at the Wagah border on the Pakistan side.
To facilitate movement of cargo it was decided that Technical Teams from Pakistan and Indian Railways will meet to decide the modalities for inter change of air braked stock and containers. Indian side also proposed that in order to reduce pressure on Attari-Lahore Rail route and to improve trade, the Munabao-Khokrapar route should be opened for freight movement. Pakistan side noted the proposal.
