Pakistan may grant Most Favoured Nation (MFN) status to its arch rival India by the end of this month.
Islamabad, March 10/Nationalturk – In a significant development which may boost ties between two nuclear armed South Asian neighbours, Pakistan may grant Most Favoured Nation (MFN) status to its arch rival India by the end of this month.
“Pakistan will extend MFN status or non-discriminatory market access (NDMA) to India by the end of this month. India in return has agreed to reduce tariffs for Pakistani exporters on up to 300 items and to eliminate non-tariff barriers,” Pakistan newspaper, The News, quoted senior unnamed officials as saying.
They said Pakistan would get maximum tariff concessions for its export-oriented industry. “Under it the existing negative list of 1,209 items will be abolished and trade at the Wagah border will be opened round the clock”.
‘Level playing field to Pakistani traders’
The officials said India has agreed to provide a level playing field to Pakistani traders for which it will relax its restrictive tariff regime for Pakistani products and will give tariff concession on various products pertaining to Pakistan’s strong sectors such as textile, cement, surgical instruments, and sports.
“The World Bank is also on board for trade liberalisation between the two countries and will extend grants which are to be used to develop infrastructure on both sides of the Wagah border with the aim to facilitate trade,” they said.
The officials said army is on board but maintained that under the deal India will not be given transit facility for its goods to have access to markets in Afghanistan and other Central Asian States.
‘Pakistan can reach out to biggest market’
If Pakistan grants MFN status to India and India reciprocates by providing trade concessions, then Pakistan will easily reach out to the biggest market of over 1 billion people and India will have access to 200 million people.
“Pakistan’s existing exports to India stand at $350 million which will surge in one year up to $1 billion and if Pakistani entrepreneurs play smartly, then Pakistan’ export will go up to close to $2 billion in one year soon after the tariff concession and abolition of NTB (non-tariff barriers) under the MFN deal,” Pakistan officials said.
India has already granted MFN status to India.
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Asia News/ NationalTurk Pakistan News
