Pakistan and India have agreed to allow each other''s shipping companies to lift other countries cargo from their respective ports, which the government hopes would improve trade with Bangladesh, sources in the Commerce Ministry told Business Recorder here on Tuesday.
The sources said the Federal Cabinet has given green signal to the Ports and Shipping Ministry for signing amended protocol on shipping services with India in 1985, but the latter refused to revise the agreement due to political reasons.
Both the countries signed shipping protocol in 1975 to provide bilateral shipping services, but later on felt the need to amend the protocol enabling respective shipping companies to lift cargo of third country from their ports, the sources added.
For this purpose, Pakistani cabinet approved amendments to the protocol in 1985, but it did not materialise, as the then Indian government response on the proposal was not positive.
The sources also said that during secretary-level talks on economic and trade co-operation held in New Delhi on August 9-10 last year, the Indian government indicated their willingness to take up the matter of amendments to the shipping protocol.
Accordingly, the technical-level talks were held on December 8-10 in Karachi where both the sides agreed to incorporate amendments to the protocol as approved by the Pakistani cabinet in 1985.
The sources said the Ports and Shipping Ministry had sought the comments of the commerce and foreign affairs ministries, which they endorsed with the proposed revision in Para 3 and 5 of the shipping protocol 1975. However, the Interior Ministry gave its concurrence in the cabinet meeting.
The sources also added that with the signing of revised pact with India, shipping companies of both the countries would be allowed to lift cargo from each other''s ports destined to other countries.
"The protocol would benefit Pakistani shipping industry, especially the private sector and also facilitate trade with Bangladesh," the sources maintained.
The Federal Cabinet, the sources said, discussed the issue in detail in its meeting on March 2 and allowed the concerned ministry to sign agreement with India as soon as possible. The date of signing the amended protocol has yet to be finalised.
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