R. SURYAMURTHY
New Delhi, Dec. 25: The Centre today said trade relations between India and Pakistan had not been snapped but official talks were on hold.
“Trade flows have not been stopped but trade talks at official and business levels have been put on hold for the moment,” Jairam Ramesh, the minister of state for commerce, told The Telegraph.
In the wake of the Mumbai terror attacks that strained relations between the neighbours, New Delhi has put on hold a secretary-level meeting in January on expanding trade between India and Pakistan and a “Made in Pakistan” trade show in the capital in February.
Reports quoting Pakistani TV channels said India had banned import of meat, poultry products and some other items from Islamabad through the Wagah border.
Nasir Memon, the chairman of the Pakistan parliament standing committee on commerce, has called for economic sanctions against India and a ban on exports to the neighbouring country.
Denying any such move, Ramesh said “only forward movement in deepening economic relations between the two countries has been put on hold for the moment”.
Officials said India planned to review all trade and economic co-operation agreements between the two countries.
The strain in relations could scuttle India’s plans to promote trade with Pakistan.
The plans include removing Pakistan from a list of countries from where foreign direct investment is not allowed for security reasons, opening branches of SBI and Bank of India in Pakistan, trading in 1,938 items compared with the current 13 and opening the Skardu-Kargil route in Jammu and Kashmir for commerce.
India’s central bank RBI and State Bank of Pakistan had earlier agreed to grant permission to two branches of commercial banks of India and Pakistan to start services on a reciprocal basis.
India has suspended land trade through the Muzaffarabad-Srinagar route. But it has not stopped trade through other land border trade points.
The government is also reconsidering a pact with Pakistan for a comprehensive economic treaty.
The treaty, had it come into force, would have provided benefits like removing tariff rate quotas for imports. India would have removed all non-tariff barriers in phases in a mutually agreed time-bound manner.
The annual trade between India and Pakistan stands at $2.3 billion (Rs 11,040 crore) with the balance heavily tilted in favour of Delhi.
Pakistan imports from India some $1.95 billion (Rs 9,360 crore) worth of products, including fruits, vegetables, seeds, spices, maize, soy bean, mushroom, medicines, chemicals and cotton.
Its exports are worth $400 million (Rs 1,920 crore).
Source : THE TELEGRAPH