The World Bank has reportedly decided to release technical assistance of $9 million (approximately Rs 900 million) to the Commerce Ministry with the objective of facilitating trade between Pakistan and India, well informed sources told Business Recorder. Earlier, USAID released about $36 million (about Rs 4 billion) to the Commerce Ministry with the objective of mobilising support in Pakistan to grant Most-Favoured Nation (MFN) status to India.
USAID reportedly hired the services of incumbent officials of Commerce Ministry and those with close links in the Ministry to conduct studies and organise seminars in support of Pak-India trade. USAID assistance was also spent on development of the Wagha border, the Torkham Post, establishment of a Trade Portal and strengthening of Trade Development Authority of Pakistan (TDAP) and National Tariff Commission (NTC). The sources said the US wants smooth transportation of Isaf supplies from the Torkham border.
The sources further revealed that one USAID consultant drawing $3000 per month practically took over the affairs of Pak-India trade affairs till the federal cabinet deferred its decision to grant Non Discriminatory Market Access (NDMA) or MFN status to India. Two other consultants getting $12000 and $5000 per month used their expertise to generate studies that were designed to convince anti-Pak-India trade sections that theirreservations were not relevant. According to sources, the World Bank has hired the services of one of these World Bank consultants who will be provided an office in the Commerce Ministry. Some of the incumbent officials of the Ministry have been given a verbal commitment that they will also be accommodated in future projects if they extend support for the grant of NDMA status to India.
The sources said World Bank''s assistance will be spent on further development of Wagha facilities which were substantially developed by the USAID. Some of the assistance will be used for strengthening of Pakistan Institute of Trade and Development (PITAD), a think tank of Commerce Ministry, which had proposed that Pakistan should link grant of NDMA status to India with the resolution of other bilateral political issues.
The sources said trade liberalisation talks between Pakistan and India are stalled as Indian Minister of State for Commerce and Industry did not attend the SAFTA ministerial conference recently held in Bhutan. Pakistan was represented by Commerce Minister, Engineer Khurram Dastgir. Dastigir had planned to have a detailed meeting with the Indian Commerce Minister with a view to removing confusion on the demand of Indian Foreign Secretary''s statement that India will implement the understanding reached in December 2012 and not March 2014. The minister had also decided to hold talks on some other trade-related issue.