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"A decision to accord MFN status to India was taken in fact in March, 2014.But we were informally conveyed we should wait for the new government to take over in May. So, I see according MFN status or NDMA (none do scrim amatory market access) to India happening once talks resume," Pakistan High Commissioner Abdul Basit said here.
However, according to Basit, for a long-standing economical relationship should not be onesided. "One may wonder while India granted MFN status to Pakistan in 1996, why we have waited for so long for according the same. The reason is the balance of trade between India and Pakistan is highly in favour of India," he said during his speech on Indo-Pak trade relations organises by Calcutta Chamber of Commerce. trade between the two countries stood at about $2.7 billion in 2013-14. Of this India's export to Pakistan was $2.064 billion and important from Pakistan stood at $541 million. "There should be much more inter-dependency in trade," he added.
Although Pakistan had agreed to grant MFN status during a secretary-level agreement in September 2012, it has not happened yet as the bilateral relation has come under stress for various political and border issues.
India and Pakisra have a preferential trading arrangement under the South Asia Free Trade Area (Safta) process. But some of trade benefits to India are blocked through a negative list maintained by Pakistan. The neighbouring country also restricts imports from India by allowing only 137 items through the land route via the Wagah-Attari border.
MFN status or NDMA will mean abolishing or linberalising the negative list altogether while maintaining a list of prohibited items that cannot be imported.
Basit is likely to meet West Bengal Chief Minister, Mamata Banerjee, tomorrow.
