Jamiat Ulema-i-Islam-F Chief Maulana Fazlur Rehman. – File Photo

ISLAMABAD: Indian Commerce Minister Anand Sharma has been invited to visit Islamabad for signing three agreements next month on removal of non-tariff barriers in bilateral trade.

“We have extended a formal invitation to the Indian commerce minister through the Pakistani High Commission in India,” an official said here on Tuesday after a briefing given to the Special Parliamentary Committee on Kashmir on trade liberalisation with India.

The committee’s Chairman Maulana Fazlur Rehman had sought the briefing from the commerce ministry on the issue of granting India the status of most favoured nation (MFN).

The last meeting on the issue had been postponed because of the absence of Commerce Minister Amin Fahim.

The signing of the proposed agreements on customs cooperation, mutual recognition and redressing grievances is expected to remove all tariff and non-tariff barriers that hinder Pakistani exports to India.`We asked the Indian government to get prior approval from relevant departments for signing these agreements during the minister`s visit, the secretary is reported to have said during the in-camera briefing.

The crux of the meeting was that Pakistan is set to change its trade regime from a positive to negative list as part of a liberalisation process.

Trade of items in the negative list will not be allowed.

Local industries have initially proposed 1,000 items for the negative list, the secretary said. The list is expected to be completed early next month.

Currently, Pakistan has 1,958 items in the positive list for trade with India. The secretary said the negative list would be trimmed to a reasonable level.

Asked about delay in finalising the negative list, the secretary said the federal cabinet was the appropriate forum to take a decision.

He assured the committee that a sufficient level of protection would be ensured to local industries before completion of trade liberalisation with India to culminate in the granting of MFN status.`The ministry of commerce will give a transparent presentation to the cabinet in February for a final decision on MFN,` he said.

He said the singing of the agreements would provide a level playing field to Pakistani exporters.

`The federal cabinet has already empowered the commerce ministry to normalise trade relations with India on the basis of non-discrimination, which means MFN status,` the secretary said.

He said the ministry was working on the agreements to be signed next month.

Currently, Indian exports to Pakistan stand at $1.6 billion and Pakistan`s exports to India at $500 million.

Some members of the committee questioned the government`s move for de-linking trade liberalisation with India from core political issues.

The secretary admitted that after granting the MFN status the trade balance would remain in favour of India.

He said a widespread campaign would be launched soon to inform local industries of the challenges and opportunities in the post-MFN trade regime with India.