Commerce Ministry has reportedly taken over the power to allow requests from importers desirous of importing different permissible goods from India via land route, well-informed sources told Business Recorder.
Earlier, such powers were vested with Prime Minister, who took decisions on case-to-case basis but were later delegated to the Commerce Ministry by the Economic Co-ordination Committee (ECC) of the cabinet in its meeting on 19 March 2009. Sources said that when the matter was put before the ECC in its meeting on March 3, 2009, a consensus emerged that due to prevalent political and security scenario, the composite dialogue under economic and commercial co-operation is not likely to be held in the near future, and the issue be deferred till the situation improves.
Interior Ministry did not want Pakistan to open trade with India in the present circumstances but Ministries of Foreign Affairs and Commerce did not agree.
Commerce Ministry, eager to have the power of No Objection Certificate (NoC) insisted on an urgent decision. However, the same day the Sri Lankan cricket team was attacked in Lahore and the Commerce Ministry insisted that the matter should only be deferred till the next meeting.
According to official documents, President Asif Zardari during a meeting with Indian Prime Minister in New York on September 24 2008 had decided to open the Wagah-Attari road link for all permissible items of trade. Ministry of Foreign Affairs had communicated the decision to all the concerned Ministries.
Commerce Ministry, in its proposal, had suggested that: (i) decision communicated by Ministry of Foreign Affairs may be implemented in a phased manner commensurate with parallel development of infrastructure on either side of the border to cater the potential spurt in bilateral trade;(ii) in principle concurrence of the Government of Pakistan to open Wagah-Attari for permissible items of trade to be fully operationalised after necessary infrastructure is developed on both sides of the border; and (iii) Minister for Commerce may be authorised to give permission of import of goods from India by road on the request of importers.
The documents further suggests that in order to facilitate trade across the Wagha-Attari road crossing, trucks of both countries are allowed to move within the respective territories of Pakistan and India for loading/unloading of cargo. This arrangement is operational since October 1, 2007.
As ascertained by the customs authorities of Pakistan at Wagha, statistics of trade with India via land since October, 2007 show that import from India amounted to Rs 3516.598 million, exports to India nil, and Afghan exports to India in transit from Pakistan amounted to Rs 2367.093 million. These statistics show that although there is no restriction on exports to India, there has been no export through this route even after facilitation of movement of trucks across the border.
A major reason, the Commerce Ministry stated, is lack of infrastructure for example godowns, weighing stations etc on Indian side of the border. In the composite dialogue, India has shared a proposal with Pakistan about the future projects to be developed to operationalise this route for bilateral trade. The project is likely to be completed in the short term, sources concluded.