The government is likely to set up a customs clearance facility at Wagah border in a bid to facilitate trade normalisation with India which is expected by December this year, Business Recorder learnt on Friday. According to sources, both countries are in the process of finalising the agreement for customs co-operation after the resumption of formal peace talks.
The sources maintained that the Federal Board of Revenue (FBR) had been directed to install a customs facility at Wagha, facilitating traders of both countries. They said the talks between these two countries were moving in the right direction as India had given a positive response over the sensitive list of items under the South Asian Free Trade Agreement (Safta).
In return, Pakistan also agreed to grant Most Favoured Nation (MFN) status to India. The sources said that Pakistan and India also maintained lists of items allowed to be exported from both sides through the border post at Wagha. Keeping this in view, issues relating to the extension of customs clearance system at Wagha border were discussed in the collectors' conference, which was recently held in Karachi, the sources said. The sources said that major exports from Pakistan to India included fruits, mineral fuels and organic chemicals while top imports from India included sugar, cotton, man-made filaments and chemicals.