India has offered Pakistan 500 megawatts (MW) electricity as well as laying of pipeline for the transportation of refined petroleum products to Pakistan, a senior Commerce Ministry official said. Both the countries also held discussion on resumption of air link between New Delhi and Islamabad, revision of agreement on avoidance of double taxation and starting of railways service on Lahore-Amritser and Lahore-Ludhiana tracks.
"Indian government has offered Pakistan 500 Megawatts (MW) of electricity as well as laying of a pipeline for the transportation of refined petroleum products to Pakistan and we are keen to import petroleum products and electricity from India," a high official who attended the meeting told Business Recorder here on Thursday.
The official informed about the quantity of petroleum products, Pakistan wanted to purchase from India said that it will totally depend upon the requirement of Pakistan and the Indian government is ready to fulfil Pakistani oil needs. When he was asked about the quality of Indian refined petroleum products which is on Euro-II standard against Pakistan's Euro-IV standard, he said that the Indian government will provide Pakistan refined petroleum products as per Pakistani standards so it was not an issue.
Pakistan consumes 6.9 million tons of diesel every year, of which domestic oil refineries produce 3.2 to 3.4 million tons and the rest is imported. Furnace oil demand stands at about 9 million tons, of which domestic refineries produce about 2.5 million tons and the remaining is imported. The country is working on some new power plants, which will increase demand of furnace oil in years to come. Both the sides also discussed import of 200 million cubic feet of Liquefied Natural Gas (LNG) per day from Delhi, for which it would be able to swiftly start deliveries.
Pakistan Commerce Secretary Muneer Qureshi led the Pakistani delegation while Indian delegation was headed by his counterpart S R Rao. The high-level 19-member Indian delegation led by the Indian commerce secretary had arrived in Islamabad on Wednesday for two-day talks, which are expected to conclude today (Friday). During the talks both the countries agreed upon promotion of regional co-operation by opening of the air services and land routes among the two neighbours.
Both the countries on the second day of bilateral talks discussed following issues: (I) Review of decisions took at the sixth round of talks held November 14-16, 2011 (II). New areas of co-operation among the two countries, which includes (a) removal of investment restrictions (b) liberalising air services (c) start of courier services and (d) co-operation in telecommunication services. (III) Promotion of Small and Medium Enterprises (SMEs) (IV) Trade via Wagha-Attari border (V) Removal of Non-Tariff Barriers (NTBs) and (VI) Phasing out of negative list.
Pakistan and India are expected to formally sign three crucial agreements at the end of the talks to boost economic activity between the two countries as they move ahead with the trade liberalisation process adopted a few months ago. Both the sides also discussed up-gradation or revision on the convention on avoidance of double taxation singed between Pakistan and India.
Both countries had already vetted the draft agreements from their respective cabinets for signing. Pakistan had already opened the doors for trade with India by raising the number of items that can be imported from that country from 1,946 to almost 5,600 since March 1, 2012. To reciprocate this major shift in Pakistan's policy towards India, the Indian government had last month lifted ban from foreign investment from Pakistan to create goodwill for further deepening the liberalisation process between the two countries.