India
and Pakistan are expected to liberalise visa rules for business travel
soon and a “ broad agreement” has been reached between the two
countries.
NEW DELHI: India and Pakistan are expected to liberalise visa rules for business travel soon and a " broad agreement" has been reached between the two countries, a senior government official said on Friday.
The move is aimed at normalising business tied between the two nuclear-armed neighbours. Earlier this month, Pakistan's cabinet unanimously agreed to grant India Most Favoured Nation (MFN) status, a long pending move which is expected to strengthen trade and bilateral relations between the two countries. The move has faced stiff opposition from some industry groups in Pakistan but both sides have reiterated their commitment to normalise trade relations.
To begin with, the two sides will issue multiple-entry visas valid for one year to prominent businessmen, Arvind Mehta, joint secretary, commerce and industry ministry, was quoted as saying at a function organised by the Federation of Indian Chambers of Commerce and Industry (Ficci). Pakistan's high commissioner to India Shahid Malik also confirmed the move.
"The one-year multiple-entry visa will allow business persons to visit up to 10 cities with no requirement of a police report and no restriction on places of entry and exit," Mehta was quoted as saying.
He said the Union Cabinet was expected to take up the issue soon. Mehta said the perception of some businessmen that open trade would swamp Pakistan with Indian goods was misplaced. "Do not be fearful of the future because things are changing," he said. The South Asian Free Trade Agreement (Safta) has several safeguards to give comfort to domestic industry as these safeguards would allow imports to be stopped if there is any disruption of domestic industry," he added.
Mehta also sought to allay apprehension that India had imposed non-tariff barriers on imports from Pakistan. Citing the case of cement import, he said there was zero customs duty on cement import, a policy signal that New Delhi welcomed cement from its neighbour.
Pakistani high commissioner Malik said there was genuine apprehension among Pakistani businessmen about the existence of non-tariff barriers. "These barriers do exist and there is no point in brushing this aside," he said and expressed confidence that the commerce secretaries of the two countries would take steps to dismantle these barriers.
Tariq Sayeed, leader of the Pakistani delegation and past president of Saarc Chamber of Commerce and Industry, noted that the potential of trade between the two countries was estimated at $12 billion in 2010, against actual trade of $2.3 billion.
"This means that both countries could tap only 27% of the available potential. The share of bilateral trade in total trade of our two countries remains less than 1% of or total trade with the rest of the world. This is perhaps the lowest ever trade proportion between any two countries of the world, a point that all of us should ponder over," he said
The move is aimed at normalising business tied between the two nuclear-armed neighbours. Earlier this month, Pakistan's cabinet unanimously agreed to grant India Most Favoured Nation (MFN) status, a long pending move which is expected to strengthen trade and bilateral relations between the two countries. The move has faced stiff opposition from some industry groups in Pakistan but both sides have reiterated their commitment to normalise trade relations.
To begin with, the two sides will issue multiple-entry visas valid for one year to prominent businessmen, Arvind Mehta, joint secretary, commerce and industry ministry, was quoted as saying at a function organised by the Federation of Indian Chambers of Commerce and Industry (Ficci). Pakistan's high commissioner to India Shahid Malik also confirmed the move.
"The one-year multiple-entry visa will allow business persons to visit up to 10 cities with no requirement of a police report and no restriction on places of entry and exit," Mehta was quoted as saying.
He said the Union Cabinet was expected to take up the issue soon. Mehta said the perception of some businessmen that open trade would swamp Pakistan with Indian goods was misplaced. "Do not be fearful of the future because things are changing," he said. The South Asian Free Trade Agreement (Safta) has several safeguards to give comfort to domestic industry as these safeguards would allow imports to be stopped if there is any disruption of domestic industry," he added.
Mehta also sought to allay apprehension that India had imposed non-tariff barriers on imports from Pakistan. Citing the case of cement import, he said there was zero customs duty on cement import, a policy signal that New Delhi welcomed cement from its neighbour.
Pakistani high commissioner Malik said there was genuine apprehension among Pakistani businessmen about the existence of non-tariff barriers. "These barriers do exist and there is no point in brushing this aside," he said and expressed confidence that the commerce secretaries of the two countries would take steps to dismantle these barriers.
Tariq Sayeed, leader of the Pakistani delegation and past president of Saarc Chamber of Commerce and Industry, noted that the potential of trade between the two countries was estimated at $12 billion in 2010, against actual trade of $2.3 billion.
"This means that both countries could tap only 27% of the available potential. The share of bilateral trade in total trade of our two countries remains less than 1% of or total trade with the rest of the world. This is perhaps the lowest ever trade proportion between any two countries of the world, a point that all of us should ponder over," he said
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