Pak’s non-tariff barrier hinders trade with India

The Dollar business bureau

India on Friday said the non-tariff barrier (NTB) imposed by Pakistan has been disturbing bilateral trade between the two neighbouring nations, and it should focus on taking regional connectivity initiatives in order  to stimulate economic growth in South Asia.

An External Affairs Ministry (EAM) Spokesperson Vikas Swarup said, “As far as we are concerned there are high non-tariff barriers (NTB) in the region, not on Pakistan but from it and Pakistan has restricted most of the importable items from India through the Wagah border.” Pakistan allows only 138 items through Wagah and this is the biggest non-tariff barrier for thousands of Indian tariff lines which have to be now routed through Karachi, raising costs even for consumers in Pakistan, the spokesperson said

“Moreover, the fact that Pakistan has not extended Most Favored Nation treatment to India, even after a lapse of close to 20 years since India unilaterally did so, is also not in keeping with WTO norms,” Swarup said.

Answering a question on Afghanistan’s decision to enter into a deal with Hizb-e Islami of Gulbuddin Hekmatyar, Swarup said, “The Indian government welcomes developments that contribute to efforts at peace and reconciliation in Afghanistan, which are Afghan-led and Afghan-owned and are in accordance with the aspirations of the people of Afghanistan for peace and stability in their country.”

He also felt that developments as significant as this may motivate others to interact or join the peace discussion with the Afghan government.

Referring to India’s new payment arrangement with Iran, EAM Spokesperson said payments in US currency continue to be banned since sanctions against Iran have not been completely lifted. In 2012-13, bilateral trade between India and Pakistan was $2.6 billion, while Pakistan’s exports to India stood at over $500 million for the first time during the year.

India exports cotton, organic chemicals, and food products containing prepared animal fodder, vegetables, and plastic articles, to Pakistan. Major items imported by India include copper and copper articles, salt, cotton, sulphur, earth and stones, fruits and nuts, and organic chemicals.