ID :
13503
Wed, 07/23/2008 - 11:52
Auther :
Shortlink :
http://m.oananews.org//node/13503
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Pakistan signals readiness for Indian investment in country
Islamabad, July 23 (PTI) The Pakistan government has signalled its readiness to allow Indian investment in various sectors by unveiling measures to encourage India-based firmsto set up units in the country for making C.N.G. buses.
In a significant shift in stance, Pakistan unilaterally included measures in its new trade policy to encourage Indian investment for manufacturing C.N.G. buses. The measures allow the import of test consignments of CNG buses by any Indian manufacturer who makes a firm commitment to set up units inPakistan.
An official in the Board of Investment told the Dawn newspaper there is no law that could bar Indian investment inPakistan.
Pakistan has a liberal investment policy, but the official said both countries generally discouraged bilateral investments. Through the move on the C.N.G. buses, the Pakistan government has signalled its readiness to "embraceIndian investment in other sectors", the official said.
The Pakistan government has invited at least three Indian companies – Tata, Reliance and Essar – to a meeting of potential investors in the power sector to discuss the development of the Thar coal power project. The meeting is dueto be held late July or early August.
Pakistan's efforts at liberalising trade with India are in line with ruling Pakistan People's Party (P.P.P.) co-chairman Asif Ali Zardari's assertion that the new government wants to improve economic relations and will not allow the Kashmir issue to come in the way of greater economiccontacts.
Meanwhile, Pakistan has diverted global trade worth over U.S.D. 4.1 billion towards India following the inclusion of 438 new importable items in the positive list over the past 10months.
Pakistan's tradable list with India had 591 items in 1997 and the figure was enhanced to 1,938 items this year. The government added 302 items to the list October 2007 and 136items July.
This expansion has led to the widening of Pakistan's trade deficit with India to U.S.D. 893 million in 2006-07 from U.S.D. 73.736 million in 1999-2000. With the latest expansionin the list, the deficit could touch U.S.D. 1.5 billion.
Official figures for the July-March period of 2007-08showed Pakistan's trade deficit with India stood at U.S.D.
1.095 billion. Pakistan exported commodities worth U.S.D. 200 million to India in the July-March period of 2007-08, whilethe value of imported goods during the period touched U.S.D.
1,295 million.
Pakistan's exports to India have stagnated betweenU.S.D. 200 million and U.S.D. 400 million.
While unveiling the new trade policy last week, Commerce Minister Chaudhry Ahmed Mukhtar said Pakistan was "gradually liberalising" trade with India. He said the government had approved the import of 136 new items fromPakistan, including fuel oil and diesel and C.N.G. buses.
However, not everyone is in favour of the expansion of trade with India. The Pakistan Association of Automotive Parts and Accessories Manufacturers has flayed the decision to allow the import of C.N.G. buses. Association chairman M.A. Malik urged the government to take back the decision. PTI RHL
In a significant shift in stance, Pakistan unilaterally included measures in its new trade policy to encourage Indian investment for manufacturing C.N.G. buses. The measures allow the import of test consignments of CNG buses by any Indian manufacturer who makes a firm commitment to set up units inPakistan.
An official in the Board of Investment told the Dawn newspaper there is no law that could bar Indian investment inPakistan.
Pakistan has a liberal investment policy, but the official said both countries generally discouraged bilateral investments. Through the move on the C.N.G. buses, the Pakistan government has signalled its readiness to "embraceIndian investment in other sectors", the official said.
The Pakistan government has invited at least three Indian companies – Tata, Reliance and Essar – to a meeting of potential investors in the power sector to discuss the development of the Thar coal power project. The meeting is dueto be held late July or early August.
Pakistan's efforts at liberalising trade with India are in line with ruling Pakistan People's Party (P.P.P.) co-chairman Asif Ali Zardari's assertion that the new government wants to improve economic relations and will not allow the Kashmir issue to come in the way of greater economiccontacts.
Meanwhile, Pakistan has diverted global trade worth over U.S.D. 4.1 billion towards India following the inclusion of 438 new importable items in the positive list over the past 10months.
Pakistan's tradable list with India had 591 items in 1997 and the figure was enhanced to 1,938 items this year. The government added 302 items to the list October 2007 and 136items July.
This expansion has led to the widening of Pakistan's trade deficit with India to U.S.D. 893 million in 2006-07 from U.S.D. 73.736 million in 1999-2000. With the latest expansionin the list, the deficit could touch U.S.D. 1.5 billion.
Official figures for the July-March period of 2007-08showed Pakistan's trade deficit with India stood at U.S.D.
1.095 billion. Pakistan exported commodities worth U.S.D. 200 million to India in the July-March period of 2007-08, whilethe value of imported goods during the period touched U.S.D.
1,295 million.
Pakistan's exports to India have stagnated betweenU.S.D. 200 million and U.S.D. 400 million.
While unveiling the new trade policy last week, Commerce Minister Chaudhry Ahmed Mukhtar said Pakistan was "gradually liberalising" trade with India. He said the government had approved the import of 136 new items fromPakistan, including fuel oil and diesel and C.N.G. buses.
However, not everyone is in favour of the expansion of trade with India. The Pakistan Association of Automotive Parts and Accessories Manufacturers has flayed the decision to allow the import of C.N.G. buses. Association chairman M.A. Malik urged the government to take back the decision. PTI RHL
