No major breakthrough is expected in the two-day Pak-India talks on trade, commencing here on Wednesday.
Talking to Business Recorder, an official who is also part of Pakistan's team constituted to confront Indian trade delegation, said that Islamabad and New Delhi were very conscious on the issue of bilateral trade and both are reluctant to offer major concessions to each other.
Asked if Pakistan was considering MFN status for India, the official said that any such major concession to India was not under consideration at this time when the two countries were yet to reach any solution on other controversial issues.
The official referred to Kashmir debacle, in particular, and linked MFN status for New Delhi with workable solution on this core issue.
The official said: "Grant of MFN status to India is out of the question as any such concession could damage Pakistan in prevailing situation in many ways."
The policy makers in Islamabad have strong feelings that MFN status to India can damage Pakistan's key sectors.
There are worries about the future of agriculture and industrial sectors for the reason that in these two important areas India enjoys clear edge over Pakistan.
Indian officials are hinting at reiterating its demand that Pakistan should reciprocate it by according New Delhi status of Most Favoured Nation (MFN).
The official said "We have 2-day talks with Indian trade team and let's see what comes out of it".
Islamabad is ready to add some more items in the list of tradable items and its experts on trade have already completed legwork in this regard but the offer depends on positive response from the Indian side on demands made by Pakistani side during the talks. Islamabad wants more access for its exporters by New Delhi to Indian market.
Islamabad also wants reduction in duty on import of items from Pakistan so that its exporters could enhance their trade to India and benefit from the concession.
India has imposed 20 percent duty on Pakistan items, which the officials in Islamabad feel is irrationally higher and meant to block exports from Pakistan. It may be noted that India has granted Pakistan status of MFN which restricts India from putting in place any negative list against Islamabad but it uses high duty as a tool to discourage import of various items.
Indian Commerce Secretary Dipak Chatterjee arrived Islamabad on Tuesday for talks with his Pakistani counterpart, Tasneem Noorani. Tasneem Noorani and would be assisted by their respective teams during the parleys.
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