Wednesday, April 27, 2011

India and Pakistan Trade Talks: Major Breakthroughs Expected

The talks between India and Pakistan trade secretaries , started in Serena Hills , Islamabad at 11.30 a.m with a delay of 2 hrs.

These talks are starting after a two years' halt caused by Mumbai attacks. Both sides have pretty high expectations from these talks and major breakthroughs are expected.

The talks are being hold to increase bilateral trade and mutual economic interests as preconditions for a longer lasting peace between the neighbors.

In case talks succeed in guaranteeing electricity imports in Pakistan from India, then it will be considered as a major breakthrough by most of the Pakistanis. Pakistan economy and society both are greatly suffering from power outages, and there is no better and immediate solution to this problem other than import of electricity from India .

India is likely to offer petroleum refined products and Electricity exports to Pakistan. According to the sources the issue of India opposing Pakistan export to EU will also be raised.

These talks are taking in the context of a will on both sides to increase economic interests to stabilize the mutual relationships.

Prime Mininster Gilani has already stressed the point that Pakistan want to engage India in positive relations.

During these talks export of Indian Petroleum products to Pakistan, lifting of tariff from Pakistani products in India, Import of Indian cotton to Pakistan, and Import of Indian Jute to Pakistan along with other measures to increase mutual trade will be discussed.

Pakistan produces only 50% of refined petroleum products. In case India provides petroleum on softer conditions, then Pakistan will cease this opportunity , as trade with India will reduce the transportation cost.

Pakistan want to import Indian petroleum goods, Indian Jute and Cotton and want India to lift tariff from Pakistani exports to India. 

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