Daily Times

Pakistan, India to register Basmati rice

12 key areas come under discussion in third round of composite dialogue

By Sajid Chaudhry

ISLAMABAD: Pakistan and India moved forward in 12 key areas during the third round of the composite dialogue on economic and commercial cooperation in Islamabad on 27 March 2006.

    Both countries agreed to jointly register Basmati rice to protect their international rights. They said that Basmati rice was their shared heritage and Geographic Indication Registration of Basmati rice was necessary. They decided to form a working group to discuss and finalise modalities.

    India demanded that Islamabad allow the import of 286 more Indian items into Pakistan. Islamabad assured New Delhi it would consider the demand and take a decision after consultation with stakeholders and the federal government.

    Commerce Secretary Syed Asif Shah led Pakistan’s delegation and Indian Commerce Secretary Shri SN Menon led India’s. Shah told reporters that Pakistan would decide on increasing the positive list after consulting the Economic Coordination Committee and the federal cabinet. Pakistan is already providing tariff concession on 773 Indian items on the positive list, he added.

    The leaders also discussed easing visa requirements for businessmen and tourists. Both countries’ home secretaries should discuss the matter in detail, they said. Officials from both countries’ Railway Ministry should also meet to discuss rail transportation, they added.

    Pakistan told India that the protocol to amend the bilateral Shipping Agreement had been approved by the federal cabinet. Menon said that New Delhi was trying to approve the proposed agreement and invited the Pakistani shipping and ports minister to visit India to sign the protocol. He also requested an expansion in the operations of the shipping agreement.

    On opening State Bank branches, Shah said that Habib Bank had applied for opening branches in Indian cities while no Indian bank had tendered such an application. He said that several Pakistani banks including MCB, NBP, UBL and Bank Alfalah were interested in opening branches in India.

    The two sides discussed linking both countries through an optical fibre link. Pakistan said it had completed laying down infrastructure on its side. India said that it would complete the connection on its side soon.

    India requested easing the transportation of Afghan exports through Pakistan’s land route of Wagah-Atari. The meeting decided to convene a gathering at the border of the authorities concerned to resolve the issue.

    The Securities and Exchange Commission representative told the leaders that a draft memorandum of understanding (MOU) regarding Assistance and Mutual Cooperation in Capital Markets had been sent to India.

    New Delhi also requested Islamabad to import tea from India. It was decided that both countries should encourage importers and exporters to enhance tea imports. The meeting highlighted the Revised Shipping Agreement, saying the cost of transporting tea would decrease – hence increasing the import of tea.

    Shah said that Pakistan had ratified the South Asian Free Trade Agreement (SAFTA) and tariff benefits would be available to all member countries. He denied Pakistan would not give tariff benefits to India under SAFTA, which would be operational from July 1, 2006. He said that two or three issues under the composite dialogue that need some discussion will be finalised soon and a joint statement will be issued on 29 March.

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