The much-awaited India-Pakistan Joint Business Council got formally notified today which will seek to increase bilateral trade and investment between both the countries, thereby paving the way for entrepreneurs from both sides to forge greater business ties with each other.
The body, which will be set up under the aegis of Ministry of Commerce and Industry, will constitute 15 industrialists and businessmen from both sides. The Indian side will be co-chaired by Sunil K. Munjal of Hero MotoCorp Ltd.
The idea to create a joint business council was mooted during first commerce secretary level talks between India and Pakistan in April 2011. Some of main duties and responsibilities of the body are yet to be worked out. Initially, it was decided that the council will have 10 prominent business personalities from both countries.
The council is expected to have its first meeting August, though no date has been fixed yet. The council is expected to meet every six months and identify ways to do business on both sides with ease. It would also do advisory work by giving recommendations to the government by suggesting ways to increase two-way trade.
Earlier this week, commerce secretary SR Rao said Pakistan is expected to grant most-favoured nation (MFN) status to India by June-July once general elections are over in Pakistan. It was expected to grant this trade status to India in December last year.
In March 2012, Pakistan notified a negative list in doing trade with India banning only 1,209 items that India cannot export to Pakistan, while allowing export of more than 7,500 tariff lines.
Bilateral trade between India and Pakistan currently stands at $1.94 billion with India’s export to Pakistan reaching $1.54 billion and imports totaling to $401.19 billion in 2011-12, according to the Ministry of Commerce and Industry. Trade between India and Pakistan soared by almost nine times between 2000-2011, according to a research done by Indian Council for Research on International Economic Relations (ICRIER).
