The future of trade liberalisation between Pakistan and India is still bleak as Islamabad is describing Wagha transit facility as a "redline"" which cannot be crossed in the current geo-political circumstances, well informed sources told Business Recorder. Pakistan and India had suspended trade talks after the Narendra Modi-led government took over and announced that they would negotiate the trade deal afresh, suspending the draft agreement finalised by the Dr Manmohin Singh government.
Prime Minister's Advisor on Foreign Affairs, Sartaj Aziz, sources said, held an inter-ministerial brainstorming session on December 30, 2015 aimed at preparing a joint strategy for Foreign Secretary level talks with India scheduled to be held on January 15, 2016. Both India and Afghanistan are using all channels to get a transit facility at Wagha border but the "permission" is the domain of national security institutions, said an analyst.
According to sources, all the stakeholders shared their views with respect to future political and economic ties with India after the recent visit of Indian Prime Minister, Narendra Modi to Lahore. The sources said Commerce Secretary level talks between Pakistan and India will be held in months to come, adding that date and venue of talks will be finalised very soon.
New Delhi, sources said, wanted to limit the talks to trade and connectivity but Pakistan insisted that talks should be held on overall economic cooperation including opening of bank branches, non-tariff barriers and implementation on three agreements signed a couple of years ago.
"Pakistan wants a wider frame in which economic engagements between the countries maybe discussed," the sources continued. When contacted Federal Minister for Commerce, Engineer Khurram Dastgir Khan who had made a lot of personal effort to ink the deal with India, confirmed that he attended a meeting wherein strategy for talks with India was deliberated threadbare.
In reply to a question, he said, Islamabad is evaluating whether India will be ready to honour the understanding reached in 2014 adding that most of the points were agreed between the two countries. An insider told Business Recorder that future talks on trade normalisation with India will be conditional to acceptance of understanding of 2014. However, Pakistan's official position is still not known on trade normalisation process.
"We will be in a better position to expedite the stalled process of economic cooperation if India agrees to restart the process where it was stalled. If they (Indians) have other ideas and thoughts, this part of comprehensive dialogue will be delayed," insider claimed.
In 2014, Pakistan was all set to grant MFN status to India relabelled as Non Discriminatory Market Access (NDMA). However, the decision was delayed due to imminent general elections in India with Pakistan reluctant to sign on the dotted line and be accused of supporting the Congress (I). Some Pakistani industry including agriculture, auto sector, pharmaceutical sector and textile sector had expressed reservations on the proposed pact between the two countries.
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