Indian High Commissioner Sharat Sabharwal has said that India is ready to implement visa liberalisation agreement and waiting for Pakistan''s go ahead signal. Addressing the members of Karachi Chamber of Commerce and Industry (KCCI) here on Thursday, he said that the new visa regime would be implemented after ratification by the Government of Pakistan.
For the first apart form liberalising business visas, tourism visa and old people facilitation visas are being introduced in the new visa regime. The High Commissioner said that the two governments had liberalised visa regime and prioritised opening of banks branches in respective countries while India had also allowed Pakistan investors to invest in India.
To a question, he said that there was no restriction on IPL to visit Pakistan. Replying another question, he said India was not violating water treaty signed in 1960. India neither stopped water flow in the past, nor going to stop it in future. "There is a mechanism to resolve dispute if any emerges," he added. He said after the recent measures from both the governments, the bilateral trade between India and Pakistan was growing rapidly and it was expected to gain further momentous in coming months.
He said increasing trade between the two countries would change the business and trade dynamics in South Asia because of the size of their economies. The diplomat said that the pace of economic growth in South Asia was slow and intra-regional trade in SAARC block was only 5 percent while in ASEAN it was 25 percent and in EU 65 percent. Consequent to Indo-Pak bilateral talks and its progress, new synergies and opportunities will be created in SAARC region.
Good growth rate in SAARC bloc has been observed in recent years. Sabharwal advised to find new avenues to promote economic integration as combined GDP of India and Pakistan was over two trillion dollars. He said that a Joint Working Group, set up by Pakistan and India, was looking into the process of re-opening Munabhao-Khokhrapar land route and air connectivity between New Delhi and Islamabad.
Talking about the trade initiatives taken by India during the last few years, the High Commissioner said that his country had agreed to bring down its Sensitive List - maintained under the South Asia Free Trade Agreement by 30 percent. According to him, under SAFTA, India has maintained a 614-item list of goods Pakistan cannot export across its eastern border. After the trade talks, Delhi will now bring down the list to only 100 items by April 2013. Pakistan has also maintained a sensitive list comprising 936 tariff lines, which it will bring down to 100 in the next five years.
On issues relating to Non-Tariff Barriers he said that India and Pakistan have recently signed three agreements on customs co-operation, mutual recognition of quality certification and grievance-addressing mechanism which will be implemented after completion of all legal formalities to streamline bilateral trade.
He stated that the negative list would be abolished by December 2012 thereafter there would be normalised WTO trade regime. India has reduced its SAFTA sensitive list by 30 percent from 878 tariff lines to 614 tariff lines. Out of 264 tariff lines being removed 155 tariff lines are pertaining to agriculture and 106 relate to textile items, he added.
He said that Indian Trade Regulators met Pakistani businesspersons and had deliberations on bilateral trade issues. He was of the view that excessive sea trade should be converted to land route via road and railways. New dedicated trade gate is being established near ceremonial gate at Wagah border to enhance trading hours up to 12 hours. Previously, trading hours were up to five hours from Wagah ceremonial gate which is also used by the visitors. To a question, he said Indian Prime Minister Manmohan Singh had accepted the invitation to visit Pakistan. However, he added, dates have not yet finalised.
President KCCI Muhammad Haroon Agar has expressed that fostering the process of regional trade and economic co-operation between Pakistan and India will bring peace and prosperity in the region. He applauded steps taken by Indian and Pakistani governments to enhance bilateral economic and commercial co-operation and to promote peace and prosperity in the region. Former Presidents KCCI Majyd Aziz, Haroon Bari, Saeed Shafiq, Mian Abrar Ahmad, Senior Vice President KCCI Shamim Firpo, Vice President Nasir Mehmood and Managing Committee Members also participated in the meeting and shared their views on Indo-Pak bilateral trade ties.