IIIA - IAKISJA

5totos lopet oo
I\C!C^I\ IIIA1IC!:
lebruary 2012
IIIA - IAKISJA
5totos lopet oo
I\C!C^I\ IIIA1IC!:
lebruary 2012
repared by:
LoknaLh Acharya
Asslstoot ultectot, llccl
Ashlma Marwaha
keseotcb Assoclote, llccl
LxecuLlve Summary ...................................................................................... 1
ChapLer 1: 8llaLeral 1rade 8elaLlons ............................................................. 3
ChapLer 2: lnvesLmenL Scenarlo ................................................................. 19
ChapLer 3: Llne of ConLrol 1rade ................................................................ 23
ChapLer 4: oLenLlal SecLors of CooperaLlon ............................................. 29
ChapLer 3: Lnergy CooperaLlon .................................................................. 33
ChapLer 6: lnfrasLrucLural and ollcy lmpedlmenLs.................................... 39
ChapLer 7: Lconomlc CosL of ConfllcL and .................................................. 43
CurrenL Lconomlc 8elaLlons
ChapLer 8: ollcy 8ecommendaLlons.......................................................... 49
llCCl's lnlLlaLlves ln losLerlng lndla-aklsLan.............................................. 33
Lconomlc 8elaLlons
aklsLan Lconomy ln llgures....................................................................... 37
Appendlx: !olnL SLaLemenL of Lhe 6Lh 8ound of 1alks on ........................... 67
Commerclal and Lconomlc Co-operaLlon beLween
Commerce SecreLarles of lndla and aklsLan
1AIII CI \C!1I!1
XFCUTIVF SUMMARY
IXCUTV :UMMA!Y
3
1rade lnLegraLlon beLween lndla and aklsLan
aklsLan's 1rade ollcy wlLh lndla
8eneflLs of lndla - aklsLan 1rade
lndla and aklsLan are Lhe Lwo mosL populous and largesL economles of Lhe SouLh Aslan
8eglon. Powever, offlclal bllaLeral Lrade remalns negllglble and nelLher counLry falls ln Lhe
caLegory of Lop Lradlng parLners of each oLher.
aklsLan's share ln lndla's LoLal exporLs lncreased from 0.33 percenL ln year 2001-2002 Lo
0.99 percenL ln year 2010-2011 and lmporLs from aklsLan as percenLage of LoLal lmporLs
of lndla, marglnally decllned from 0.13 percenL ln 2001-2002 Lo 0.09 percenL ln year
2010-2011.
1he formal Lrade beLween lndla and aklsLan lncreased from uSu 144 mllllon ln 2001 Lo
uSu 2.7 bllllon ln 2010-11.
1he lnformal Lrade lncludlng Lhlrd counLry Lrade beLween lndla and aklsLan ls esLlmaLed
aL uSu 10 bllllon. 1he lnformal Lrade has flourlshed as aklsLan only allows lmporLs from
lndla based on a poslLlve llsL of 1938 lLems. 1rade Lhrough Lhlrd counLrles or clrcular Lrade
ls malnly conducLed Lhrough agenLs operaLlng ln free porLs llke uubal or Slngapore and
Lhe CenLral Aslan 8epubllc (CA8) counLrles. 1he slze of clrcular Lrade underllnes Lhe
poLenLlal of lmprovlng bllaLeral Lrade beLween Lhe Lwo counLrles.
Whlle aklsLan allows exporLs Lo lndla, lL has malnLalned a poslLlve llsL of 1938 lLems
(vlde lmporL pollcy order of aklsLan 2008) whlch were offlclally lmporLable from lndla.
Cn Lhe oLher hand, lndla has exLended Lhe MosL lavored naLlon SLaLus Lo aklsLan and
does noL lmpose equlvalenL formal resLrlcLlons on exporLs Lo or lmporLs from aklsLan.
lndla- aklsLan Lrade amounLs Lo less Lhan 1 per cenL of lndla's global Lrade. Powever, Lhe
volumes of Lhlrd counLry Lrade and lnformal Lrade lndlcaLe Lhe Lremendous poLenLlal for
bllaLeral Lrade beLween Lhe Lwo counLrles. Several resLrlcLlons on offlclal Lrade compel
boLh Lhe counLrles Lo lmporL cerLaln goods from far off sources, whlch Lhey can easlly
lmporL from each oLher. lncreased bllaLeral Lrade would ensure cheaper raw maLerlals
and low LransporLaLlon and lnsurance cosL whlch would LranslaLe lnLo quallLy goods aL
compeLlLlve prlces for boLh Lhe counLrles. Whlle consumers would galn ln Lerms of lower
prlces, hlgher purchaslng power and greaLer cholce of Lraded goods, manufacLurers wlll
have access Lo Lhe wlder markeLs ln Lhe nelghbourhood. 1he CovernmenL would have
revenue galns by brlnglng lnformal Lrade lnLo Lhe formal channel. ulLlmaLely, Lhls would
resulL ln a wln-wln slLuaLlon for everyone.
AL presenL lnvesLmenL flows from aklsLan are noL allowed lnLo lndla. Also, no lndlan
lnvesLmenL has been done ln aklsLan. 1here exlsLs a large poLenLlal for cross border
lnvesLmenLs. lndla and aklsLan have common mulLlnaLlonal companles operaLlng ln
Lhelr counLrles. 1hese can acL as meanlngful condulLs for Lrade and lnvesLmenL.
rospecLs of lnvesLmenL for MnCs and lndlan lnvesLors ln aklsLan
4
bILATFRAL JRADF IFLATIONS
CIAIJI 1
IAT!A 1!A IATONS
?ear 2011 wlLnessed breakLhrough developmenLs ln lndla-aklsLan Lrade negoLlaLlons.
1he recenL meeLlngs beLween Lhe Commerce MlnlsLers of boLh Lhe counLrles and a
commlLmenL from aklsLan Lo granL MosL lavoured naLlon (Mln) sLaLus Lo lndla are seen
as ma[or developmenLs ln Laklng forward Lhe bllaLeral relaLlons of Lhe Lwo counLrles. 1he
Commerce MlnlsLers of boLh Lhe counLrles whlle acknowledglng Lhe facL LhaL currenL
level of Lrade ls much below poLenLlal, vowed Lo lncrease lL from uSu 2.7 bllllon Lo uSu 6
bllllon ln 3 years' Llme. A number of sLudles have aLLempLed Lo esLlmaLe Lhe poLenLlal
level of bllaLeral Lrade. 1hese esLlmaLes range from uSu 6 bllllon Lo as hlgh as uSu 42
bllllon. 1he bllaLeral Lrade beLween aklsLan and lndla, Lhe Lwo largesL economles and
Lradlng naLlons ln Lhe reglon, has Lrlpled ln lasL slx years buL sLlll remalns below Lhe
poLenLlal Lrade. lndla-aklsLan Lrade relaLlons have lmpllcaLlons aL Lhe reglonal level as
well. When lL comes Lo SouLh Asla, Lhe slLuaLlon ls dlsappolnLlng because lnLra-reglonal
Lrade has remalned sLagnanL aL less Lhan 3 percenL of Lhe LoLal Lrade ln Lhe lasL LwenLy-
flve years.
ln Lhe llghL of recenL moves Lowards lmprovlng economlc and commerclal Lles, Lhls sLudy
aLLempLs Lo examlne Lhe lssues concernlng Lhe move Lowards llberallzlng Lrade wlLh
aklsLan and prospecLs for lndlan lnvesLmenL ln aklsLan.
AL Lhe Llme of lndependence, lndla was aklsLan's ma[or Lradlng parLner accounLlng for
70 percenL of lLs LoLal Lrade. ln comparlson, lndla accounLed for less Lhan 3 percenL of
aklsLan's Lrade ln 2010-11. 1he share of aklsLan ln lndla's Lrade aL presenL ls less Lhan 1
percenL. lndla and aklsLan are Lhe Lwo mosL populous and largesL economles of Lhe
SouLh Aslan 8eglon. Powever, offlclal bllaLeral Lrade remalns much below Lhe poLenLlal.
Slnce, 1973 when 1radlng CorporaLlon of aklsLan, a sLaLe owned company, was allowed
Lo lmporL 40 commodlLles, aklsLan has gradually lncreased Lhe number of commodlLles
permlLLed Lo be lmporLed from lndla. lL was only ln 1982 LhaL prlvaLe corporaLlons ln
aklsLan were allowed Lo lmporL from lndla. aklsLan sLarLed Lradlng wlLh lndla based on
poslLlve llsL approach whlch lncluded Lhe approved lmporLs from lndla. 1rade sLarLed
plcklng up correspondlng Lo Lhe number of commodlLles ln Lhe poslLlve llsL, whlch
reached 371 lLems by 1989.
lndla - aklsLan 1rade 8elaLlons
7
8
ln 1996, lndla and aklsLan boLh were slgnaLorles of SouLh Asla referenLlal 1rade
AgreemenL. lndla granLed aklsLan Mln sLaLus and aklsLan declded Lo expand lLs
poslLlve llsL Lo lnclude 396 lLems. 1he bllaLeral Lrade sLood aL uSu 180 mllllon. 8y 2003
Lrade beLween Lhe Lwo counLrles had lncreased Lo uSu 602 mllllon and Lhe number of
commodlLles Lraded lncreased Lo 770 lLems. 1he number of commodlLles ln aklsLan's
poslLlve llsL were lncreased Lo 1073 by 2006. 8y 2007-08 Lrade had lncreased Lo uSu 2.2
bllllon.
1he decllne ln global Lrade followlng Lhe subprlme crlses lmpacLed lndo-ak Lrade as well.
Powever, Lhe bllaLeral Lrade plcked up ln 2009-10. aklsLan's poslLlve llsL for Lrade wlLh
lndla was furLher lncreased Lo 1938 lLems and Lhe LoLal Lrade recovered from uSu 1.8
bllllon ln 2008-09 Lo uSu 2.7 bllllon by 2010-11. 1he bllaLeral Lrade balance aL presenL ls
heavlly ln favour of lndla.
I|gure1: Ind|a's 1rade w|th ak|stan: 1948-2010

2300
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LxporLs lmporLs 1oLal Lrade
5ootce. ultectloo of 1toJe 5totlstlcs, lMl.
aklsLan's share ln lndla's LoLal exporLs lncreased from 0.33 percenL ln 2001-2002 Lo 0.99
percenL by 2010-2011 and lmporLs from aklsLan as a percenLage of LoLal lmporLs of
lndla, marglnally decllned from 0.13 percenL ln 2001-2002 Lo 0.09 percenL by 2010-2011.
1he formal Lrade beLween lndla and aklsLan lncreased from uSu 144 mllllon ln 2001-02
Lo uSu 2.7 bllllon 2010-11.
llgure 3 shows lndla's Lrade wlLh selecLed SAA8C counLrles. lL can be seen LhaL lndla's
Lrade wlLh aklsLan has been lncreaslng ln recenL years, buL remalns lower Lhan oLher
economles of Lhe reglon. ln Lhe afLermaLh of Lhe global flnanclal crlsls, ln Lhe year 2008-
09, lndla's LoLal Lrade wlLh Lhe world had lncreased by 17 percenL, before conLracLlng by
4 percenL ln Lhe followlng year. 8uL Lrade conLracLlon wlLh lLs SAA8C Lradlng parLners was
much more lmmedlaLe. lndla's Lrade wlLh SAA8C fell by almosL 12 percenL ln 2008-09 and
furLher decllned by 3 percenL ln 2009-10. lnLeresLlngly Lrade wlLh aklsLan decllned only
for one year before marglnally lncreaslng by 2 percenL ln 2009-10. lL needs Lo be noLed
LhaL lndla's Lrade wlLh aklsLan as compared Lo Lhe pre-crlsls level has recovered much
slower compared Lo lndla's Lrade wlLh oLher SAA8C economles, lL ls hlgher by a facLor of
27 percenL wlLh 8angladesh and nepal and around 31 percenL hlgher wlLh Srl Lanka, Lhe
lncrease ln Lrade wlLh aklsLan was hlgher only by a facLor of 19 percenL.
I|gure 2: Ind|a ak|stan8||atera| 1rade (2001-2011)
0
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LxporLs Lo aklsLan lmporLs from aklsLan
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5ootce. Mlolstty of commetce & loJostty, Covetomeot of loJlo
9
1able 1 glves Lhe commodlLy wlse exporL aL 2 dlglL level PS Code. lndla exporLed uSu
634.01 mllllon worLh of sugar Lo aklsLan ln 2010-11. 1he sudden splke ln Lhe sugar
exporLs was due Lo shorLage of producLlon ln aklsLan. lollowlng whlch, aklsLan had
walved of a 23 percenL duLy on raw sugar ln SepLember, 2010.
1he share of Lop 3 commodlLles (aL 2 dlglL level) accounLed for around 70 percenL of LoLal
exporLs from lndla Lo aklsLan, of whlch LexLlles conLrlbuLed 38 percenL.

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S8l LAnkA uS8 AklS1An l8 nLAL 8AnCLAuLSP C1PL8S
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I|gure 3: Ind|a's 1rade w|th SAAkC Countr|es
5ootce. Mlolstty of commetce ooJ loJostty, loJlo. Note. Otbets locloJe Afqboolstoo, 8botoo ooJ MolJlves
2
0
1
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1
1ab|e 1: 1op I|ve Lxport Items from Ind|a to ak|stan {liqure ln u5u Mi//ion)
S No nS Code Commod|ty 2009-2010 2010-11
1 17 SuCA8S Anu SuCA8 1.07 634.01
CCnlLC1lCnA8?
2 32 CC11Cn. 242.77 401.82
3 29 C8CAnlC CPLMlCALS 308.29 273.78
4 34 MAn-MAuL llLAMLn1S 419.78 234
3 7 Lul8LL vLCL1A8LLS Anu 39.83 74.03
CL81Aln 8CC1S Anu 1u8L8S.
5ootce. Mlolstty of commetce ooJ loJostty, Covt. of loJlo
10
lndla's ma[or lmporLs from aklsLan are glven ln 1able 2. 1op 3 commodlLles accounLed
for 63 percenL of Lhe LoLal lmporLs. 1he bllaLeral Lrade beLween Lhe Lwo counLrles ls
heavlly concenLraLed lnLo a few commodlLles.
1he facL LhaL a large number of lLems are Lraded beLween lndla and aklsLan Lhrough
lnformal channels presenLs Lhe case for poLenLlal lncrease ln bllaLeral Lrade. 1he lnformal

Lrade beLween Lhe Lwo counLrles malnly Lakes place Lhrough Lwo rouLes: Cne ls
smuggllng across Lhe borders and oLher ls Lhrough a more clrculLous rouLe, lnvolvlng a

Lhlrd counLry. lnformal Lrade happens ln goods LhaL are noL on aklsLan's poslLlve llsL and
hence cannoL be lmporLed legally (harmaceuLlcals, cosmeLlcs, [ewellery) and have a
hlgh lmporL Larlff ln aklsLan (e.g. 8eeLle leaves, LracLor Llres). LsLlmaLes of lnformal Lrade
vary from uSu 300 mllllon Lo flve Llmes Lhe slze of Lhe formal Lrade. 1he maln lLems of
lmporL from lndla are cloLh, Llres, pharmaceuLlcal and LexLlle machlnery, cosmeLlcs,
llvesLock and medlclnes. 1hey accounL for roughly 80 percenL of Lhe LoLal lmporL value.
lnformal 1rade
1ab|e 2: 1op I|ve Import Items from ak|stan to Ind|a {liqure ln u5u Mi//ion)
5ootce. Mlolstty of commetce ooJ loJostty, Covt. of loJlo
S No nS Code Commod|ty 2009-2010 2010-2011
1 8 Lul8LL l8ul1 Anu nu1S, LLL C8 46.41 62.98
Cl18uS l8ul1 C8 MLLCnS
2 27 MlnL8AL luLLS, MlnL8AL ClLS Anu 9.33 36.99
8CuuC1S Cl 1PLl8 ulS1lLLA1lCn,
8l1uMlnCuS SuS1AnCLS, MlnL8AL
WAxLS
3 23 SAL1, SuLPu8, LA81PS Anu S1CnL, 42.38 40.43
LAS1L8lnC MA1L8lALS, LlML Anu
CLMLn1
4 29 C8CAnlC CPLMlCALS 47.01 32.67
3 32 CC11Cn 39.1 22.43
11
1
Whlle aklsLan's lnformal exporLs malnly conslsLs of LexLlles . 88 percenL of Lhese Lrades
2
are rouLed Lhrough Lhlrd counLrles . 1he maln lmpllcaLlons of lnformal Lrade are: (l) loss
of revenue for Lhe exchequer and (ll) lncreased cosL for Lhe consumers. 1he cosL of
LransporLaLlon goes up by 1.4 Lo 1.7 Llmes when Lhe lndlrecL rouLe Mumbal- uubal-
karachl ls used lnsLead of Lhe dlrecL rouLe Mumbal - karachl. 1hls ls a clear lndlcaLlon
LhaL aklsLan should open up lLs Lrade wlLh lndla. 1he ma[or rouLes for lnformal Lrades
are from uubal, Slngapore and AfghanlsLan.
PlCP 1A8lll
1P8CuCP
SLClllC 1AxLS
ln lnulA
PlCP 1A8lll
ln AklS1An
nC1Cn
AklS1An'S
CSl1lvL LlS1
INICkMAL
1kADL
1
kboo, 5bobeeo kofl, lolsol nop 5bobeeo, MoeeJ osof ooJ Asko 1ooveet 2007. keqloool loteqtotloo, 1toJe
ooJ coofllct lo 5ootb Aslo. 5ostolooble uevelopmeot lollcy lostltote, lslomoboJ, loklstoo.
2
1ooejo, Nlsbo 2006. loJlo loklstoo 1toJe. lcklk wotkloq lopet No. 182. New uelbl. loJloo cooocll fot
keseotcb oo lotetootloool cooomlc kelotloos.
12
3
1rade negoLlaLlons afLer 8esumpLlon of ComposlLe ulalogue rocess
Cne of Lhe ma[or componenLs of Lhe composlLe dlalogue process relaLes Lo enhanclng
economlc engagemenLs beLween Lhe Lwo counLrles. 1he Lrade beLween Lhe Lwo
counLrles Lends Lo prosper wlLh lmproved bllaLeral pollLlcal relaLlons. 1he 3Lh round of
lndla-aklsLan Lalks on Commerclal and Lconomlc Co-operaLlon was held ln lslamabad ln
Aprll 2011. AfLer a long perlod of Llme, Lrade was agaln back on Lhe negoLlaLlng Lable. A
number of lmporLanL lssues were dlscussed, Lhough Lhe progress was slow.
1he Commerce SecreLarles level Lalks held on 27-28 Aprll 2011, ln lslamabad lald ouL Lhe
roadmap for Lrade llberallzaLlon beLween Lhe Lwo counLrles. 1hls was followed by Lhe
meeLlng of a !olnL Worklng Croup on Lconomlc and Commerclal CooperaLlon and 1rade
romoLlon" on 22-23 AugusL 2011 ln new uelhl. 1hls meeLlng preceded Lhe lndo-ak
Commerce MlnlsLer level Lalks ln SepLember 2011 ln new uelhl.
1he vlslL of aklsLan's Commerce MlnlsLer Lo lndla from 26Lh SepLember Lo 2nd CcLober
2011 was Lhe flrsL such vlslL ln lasL 33 years, lndlcaLlng Lhe pollLlcal wlll Lo lmprove
economlc and commerclal relaLlons. 1he Commerce MlnlsLers sLaLed Lhelr flrm deslre Lo
move beyond normallzaLlon of Lrade Lo a preferenLlal Lradlng arrangemenL, under Lhe
framework of SAl1A. 1he MlnlsLers agreed Lo work closely Lo lncrease Lrade from currenL
level of uSu 2.7 bllllon Lo uSu 6 bllllon. ln a very unequlvocal message Lhe mlnlsLers
agreed LhaL Lhe bllaLeral Lrade llberallzaLlon process should be unlnLerrupLlble and
lrreverslble".
1he Commerce MlnlsLers had lald ouL mandaLes for Lhe 6Lh round of lndla-aklsLan Lalks
on Commerclal and Lconomlc Co-operaLlon held ln november 2011 aL new uelhl,
beLween Lhe Commerce SecreLarles of lndla and aklsLan. 1aklng Lhe mandaLe forward,
boLh sldes agreed Lo work as per speclflc Llmellne Lo normallze Lrade relaLlonshlps
lncludlng dlsmanLllng of all non-Larlff barrlers, full lmplemenLaLlon of SAl1A obllgaLlons
and preparaLlon of roadmaps for lmprovlng Lradlng arrangemenLs beLween Lhe Lwo
counLrles. 1he need Lo lmprove lnLra-reglonal connecLlvlLy Lhrough road, rall, shlpplng
and alr was also agreed on.
1here was also a meeLlng of Lhe mlnds LhaL everyLhlng should be done Lo faclllLaLe a
llberal vlsa reglme, so LhaL lL ls easler for Lhe buslnessmen on boLh Lhe sldes Lo vlslL each
oLher.
J
1be composlte Jloloqoe ptocess bos 8 compooeots ooJ cooomlc & commetclol coopetotloo ls o mojot
compooeot. 1be uloloqoes bove beeo oo ooJ off , lofloeoceJ by tbe polltlcol eovltoomeot.
13
1. ak|stan Grant|ng MIN Status to Ind|a:

2. Support for 8us|ness Commun|t|es |n romot|on of 1rade:
3. 1o romote 1rade both 1ar|ff and Non-tar|ff 8arr|ers (N18s) need to be
kemoved]reduced:



4
4. Infrastructure at Integrated Check ost on Attar|-Wagah 8order :

uurlng Lhe vlslL of aklsLan's lorelgn
MlnlsLer ln !uly 2011, lL was announced LhaL aklsLan ls Laklng poslLlve sLeps
Lowards granLlng MosL lavored naLlon (Mln) sLaLus ln Lrade. ln november,
aklsLan announced granLlng of Mln sLaLus Lo lndla, ln prlnclple. 1he flrsL sLep
lncludes a move Lowards replaclng Lhe poslLlve llsL wlLh Lhe negaLlve llsL for
lmporLlng goods from lndla. A small negaLlve llsL shall be flnallzed and raLlfled by
lebruary, 2012. 1hls wlll be followed by Lhe granL of Mln sLaLus Lo lndla.
1here ls need for
buslness semlnars, Lrade falrs, exhlblLlons eLc. 1here have been a number of
lnLeracLlons beLween Lhe Chambers of Commerce of boLh Lhe counLrles. 1hls has
been lnsLlLuLlonallzed ln Lhe form of lndla-aklsLan Chamber of Commerce. llCCl
ls Lhe maln nodal head from Lhe lndlan slde for Lhls lnLeracLlon.
aklsLan had soughL clarlflcaLlon on non-Larlff barrlers whlch
lLs Lradlng groups face ln lndla. 1hese are relaLed Lo vlsas, requlremenL sampllng
or cusLoms lnspecLlon, requlremenL of Lechnlcal or sLandard cerLlflcaLlon (eg.
cemenLs, LexLlles, leaLher), labelllng and marklng rules (eg. processed foods),
packaglng rules speclflcaLlon, mulLlple cerLlflcaLlons (eg. surglcal lnsLrumenLs)
eLc. and lnvesLmenL relaLed lssues. 1hese lssues are belng pursued by boLh Lhe
sldes. (See Annexure for deLalls). 8ecenLly Lhe Lwo sldes have slgned agreemenLs
on AccepLance of CerLlflcaLlon of lnLernaLlonally AccredlLed LaboraLorles" and
8edresslng of Crlevances" Lo remove non-Larlff barrlers.
ln March,
2011 dlscusslons were held Lo open a second gaLe aL Lhe ALLarl-Wagah border for
handllng cargo. 1he second gaLe ls belng consLrucLed aL Lhe zero llne. An
approach road ls also belng consLrucLed connecLlng Lhe lnLegraLed check posLs Lo
Lhe second gaLe and also connecL AmrlLsar- Lahore hlghway. 1hls ls expecLed Lo
lncrease Lhe number of Lrucks crosslng Lhe border from currenL 130-200 Lo 300-
3
600 Lrucks dally . 1he lC ls expecLed Lo be operaLlonallzed by end of lebruary,
2012.
4
bttp.//ottlcles.tlmesofloJlo.loJlotlmes.com/2011-0J-25/loJlo/29187891_1_qote-loJlo-ooJ-poklstoo-
botJet-loftosttoctote
5
koojeet 5loqb, loJloo costoms commlsslooet lo bttp.//www.loJlooexptess.com/oews/loJlo-poklstoo-set-op-
botJet-botlloe-fot-sm/804162/
14
8ox 1: 8||atera| |ssues under d|scuss|on and the present pos|t|on
S. Lxpans|on of 1rade through Attar|-Wagah 8order:

6. kemova| of 1rade kestr|ct|ons by Land koute:

7. Customs L|a|son 8order Comm|ttee (CL8C):
8. narmon|zat|on of Customs rocedures:

9. 1rade |n L|ectr|c|ty between both the Countr|es:
1here has been agreemenL Lo
lncrease Lrade Lhrough land border. ln addlLlon Lo Lhe openlng of second gaLe aL
Lhe lnLegraLed check posL, Lhe followlng sLeps are belng Laken Lo lmprove Lrade:
lncreaslng Lradlng hours Lo Lake advanLage of lmproved lnfrasLrucLure.
laclllLaLlng movemenL of large vehlcles and conLalnerlzed cargoes.
uaLa sharlng (examlnaLlon reporL sharlng ln real Llme).
aklsLan agreed Lo remove lLs
presenL resLrlcLlon on Lhe number of commodlLles Lraded by land rouLe Lhrough
Wagah, once Lhe consLrucLlon of new lnfrasLrucLure ls compleLed.
ln Lhe Aprll 2011 meeLlng beLween
Lhe Commerce SecreLarles, lL was declded Lo seL up Lhls commlLLee Lo formallze
Lhe cusLoms llalson arrangemenLs. AL Lhe end of Lhe flrsL meeLlng of CL8C ln !une
2011, lL was declded Lo seL up a Lelephone hoLllne aL ALLarl lnLernaLlonal 8allway
sLaLlon for lmproved communlcaLlon. 1he hoLllne became operaLlonal afLer Lhe
CL8C meeLlng ln uecember. lL was also declded LhaL Lhe Lrade rouLes be opened
on Sundays Lo clear Lhe heavy backlog of Lrucks whlch are sLranded on boLh sldes
6
of Lhe border .
aklsLan and lndla have flnallsed
CusLoms Co-operaLlon AgreemenL Lo avold arblLrary sLoppages of goods aL each
7
oLher's porLs .
A !olnL 1echnlcal CommlLLee
has been seL up Lo dlscuss Lhe poLenLlal for elecLrlclLy Lradlng beLween Lhe Lwo
counLrles. A broad undersLandlng has been reached on posslble grld connecLlvlLy
8
beLween AmrlLsar-Lahore Lo enable Lrade of up Lo 300 MW of power .
6
bttp.//ottlcles.tlmesofloJlo.loJlotlmes.com/2011-12-1J/loJlo/J0511245_1_costoms-offlclols-ottotl-ooJ-
woqob-botlloe
7
bttp.//www.btecotJet.com/motket-Joto/stocks-o-booJs/sloqle/6J6/0./1147J68.poklstoo-loJlo-floollse-
tbtee-oqteemeots/?Jote=2012-01-27
8
Iolot stotemeot of tbe 6tb toooJ of tolks oo commetclol ooJ ecooomlc co-opetotloo betweeo commetce
sectetotles of loJlo ooJ loklstoo
13
10. Lxpand|ng 1rade |n etro|eum products:
11. In|t|at|ve to romote 8||atera| 1rade |n 8t. Cotton seeds:
12. Cooperat|on |n Informat|on 1echno|ogy (I1) Sector:
13. Imp|ementat|on of SAI1A:
9
14. romot|on of 8||atera| |nvestments :
.

1S. Cpen|ng up of 8ank 8ranches |n each other's 1err|tory:
16. Co||aborat|on |n 1rade romot|ona| Act|v|t|es:

A commlLLee conslsLlng of group of
experLs from boLh counLrles has been seLup Lo sLudy Lhe poLenLlal of expandlng
Lrade ln peLroleum producLs. aklsLan llfLed Lhe ban on lmporLlng dlesel from
lndla ln 2009 buL does noL allow lmporL of peLrol.
aklsLan has recenLly
opened up commerclal culLlvaLlon of 8L. CoLLon seeds, Lhls provldes exporL
opporLunlLles for lndlan bloLechnology flrms.
lndla and aklsLan have boLh
agreed Lo explore Lhe poLenLlal ln Lhe l1 secLor ln Lhe forLhcomlng Commerce
MlnlsLer's vlslL. nASSCCM from lndla and SofLware LxporL romoLlon 8oard of
aklsLan have been appolnLed as nodal agencles.
As parL of lLs commlLmenL under SAl1A, lndla has
reduced peak Larlff raLes for aklsLan Lo 8 by 1sL !anuary 2012 and Lhe peak
raLes would be furLher reduced Lo 3 by 1sL !anuary 2013. aklsLan needs Lo
work Lowards lmplemenLaLlon of SAl1A.
aklsLan ls Lhe only counLry ln Lhe negaLlve
llsL of counLrles, from whlch lnflow of lnvesLmenLs lnLo lndla ls noL permlLLed
Also, no lndlan lnvesLmenL exlsLs ln aklsLan. 1he posL Mln sLaLus negoLlaLlons
are llkely Lo focus on Lhe promoLlon of bllaLeral lnvesLmenLs.
Whlle Lalks have been
golng on Lhls lssue for long, noLhlng concreLe has come up so far. ulscusslons
beLween Lhe cenLral bankers are expecLed Lo conLlnue.
8oLh counLrles have agreed Lo
collaboraLe on Lrade promoLlonal acLlvlLles. lndla 1rade romoLlon CrganlzaLlon
(l1C) and 1rade uevelopmenL AuLhorlLy of aklsLan, Lhe Lwo Lrade promoLlng
organlzaLlons ln boLh Lhe counLrles, slgned a Memorandum of undersLandlng ln
SepLember 2011.
9
1bete ote loJlcotloos, tbot loklstoo moy be temoveJ ftomtbe oeqotlve llst of cooottles oot olloweJ to lovest

l o l oJl o. 1bl s wool J meoo tbot sooo lokl stool fl tms moy l ovest l o l oJl oo motkets.
bttp.//ottlcles.ecooomlctlmes.loJlotlmes.com/2011-08-22/oews/29914920_1_oeqotlve-llst-mfo-stotos-
loJlo-ooJ-poklstoo
16
17. V|sas:

vlsas remaln a ma[or lssue of lrrlLaLlon for Lhe Lradlng communlLles of
lndla and aklsLan. 1he granLlng of vlsa ls regulaLed by Lhe 8llaLeral vlsa
AgreemenL of 1974 and ls consldered Lo be resLrlcLlve ln naLure. 1he Lalks on Lhls
were revlved ln March 2011 aL Lhe !olnL Worklng Croup meeLlng held ln new
uelhl. ln recenL Lalks Lhere has been a general accepLance LhaL vlsa reglme for
buslnesspersons needs Lo be more llberal.
17
INVFSTMFNT SCFNARIO
CIAIJI 2
INVSTMNT :CNA!O
lnvesLmenL promoLes Lhe Lransfer of Lechnology and experLlse, whlch ln Lurn sLlmulaLes
Lhe economlc growLh of developlng counLrles. Lncouraged by such facLs, hosL counLrles
offer varlous lncenLlves whlch lnclude Lax breaks, llberal rules and regulaLlons, speclal
granLs, eLc.
lnvesLmenL ln hlgh Lechnology lndusLrles ls wldely seen as deslrable ln developlng
counLrles llke aklsLan, glven LhaL lL provldes employmenL opporLunlLles, boosLs exporLs
by lncreaslng producLlon and helps ln modernlzlng Lhe economy.
As lndla and aklsLan compeLe Lo sell Lhelr goods ln Lhe global markeL, Lhere are many
areas ln whlch boLh Lhe counLrles can complemenL each oLher's needs and hence
produce cosL-effecLlve quallLy goods. 1he 8oard of lnvesLmenL has lndlcaLed LhaL aklsLan
has so far made bllaLeral lnvesLmenL agreemenLs wlLh 46 counLrles (excepL lndla) durlng
Lhe perlod from 1939 Lo 2004. AL presenL, [olnL venLures beLween Lhe Lwo counLrles are
non-exlsLenL, and so ls dlrecL lnvesLmenL.
1here are no lndo-ak [olnL venLures, ln splLe of a sLrong buslness lnLeresL on boLh sldes
due Lo Lhe absence of an enabllng envlronmenL for such lnvesLmenL. lor example, Lhere
are no lnsLlLuLlonal mechanlsms for bllaLeral lnvesLmenL guaranLees. 1here ls
conslderable lack of lnformaLlon and awareness abouL each oLher's Lrade reglme,
commerclal pollcles and buslness and regulaLory procedures.
SAA8C Chamber of Commerce and lndusLry has ldenLlfled lnvesLmenL posslblllLles ln
aklsLan ln secLors such as flsh processlng, chemlcals and pharmaceuLlcals, auLomoblle
componenLs and lnformaLlon Lechnology.
A sLudy commlssloned by llCCl [olnLly wlLh SAA8C Chamber of Commerce & lndusLry and
formulaLed by 1aLa Lconomlc ConsulLancy Servlces ouLllnes Lhe lndusLrlal lnvesLmenL
opporLunlLles &scope for [olnL venLure ln SAA8C CounLrles.
oLenLlal !olnL venLures (!vs) beLween lndla and aklsLan
21
ln Lhls reporL, Lhe varlous poLenLlal !vs ldenLlfled beLween lndla & aklsLan are as
follows:-
Industry Group ro[ect Iocus
Informat|on
1echno|ogy (I1)
I|sh rocess|ng
Drugs & harma-
ceut|ca|s (DA)
Agro-Chem|ca|s
Chem|ca|s
1ab|e 3: otent|a| IVs between Ind|a & ak|stan

SofLware LxporLs 1ralnlng CenLre / CenLer for SofLware

1ralnlng & ManagemenL (CS1M) SofLware uevelopmenL
CenLer (SuC).
aklsLan has Lhe poLenLlal Lo become an lmporLanL sofLware
exporLlng and Lralnlng cenLer.
lndla can become a role model & boLh Lhe counLrles should
co-operaLe & collaboraLe Lo Lap Lhe large global markeL for
sofLware.
rocessed lrozen / Canned llsh roducLs
luLure LhrusL should be on value added canned producLs
exporLs Lo Lhe developed counLrles
8ulk drugs
Lxpanslon of formulaLlon secLor (LableLs, capsules, olnLmenL,
ln[ecLlons eLc.).
Lxpanslon of healLh care producLs (lv flulds, dlsposable
syrlnges, dlagnosLlc klLs eLc.).
lndlan pharma lndusLry can provlde Lhe necessary supporL &
asslsLance Lo aklsLan for Lhe expanslon of lLs lndusLry.
A pesLlcldes manufacLurlng unlL ln aklsLan.
WlLh Lhe expanslon of agrl buslness, demand for agro chemlcals
wlll grow ln fuLure.
lndlan ma[or players can play an lmporLanL role Lhrough
Lransfer of Lechnology.
uyes and plgmenLs manufacLurlng unlL ln aklsLan
aklsLan has asLrong manufacLurlng basefor LexLlles &leaLher.
lndlan players and mulLlnaLlonals can asslsL aklsLan ln
developlng Lhe secLor.
lnLegraLed auLo componenL complex.
nexL Lo lndla, aklsLan ls Lheonly counLry ln LheSAA8C8eglon Lo
ManufacLure&Assembleassenger Cars.
aklsLan may also conslder Assembly of PCv & LCv ln
collaboraLlon wlLh 1aLa MoLors / Ashok Leyland from lndla.
Automob||e
Anc|||ary
22
L|ght Lng|neer|ng
Industry Group ro[ect Iocus
Leather rocess|ng
Comp|ex : va|ue
added products for
exports

L C cyllnder manufacLurlng unlL ln aklsLan

1echnologycan besourced from lndla.
Scope for lncluslon of cyllnders for lndusLrlal gases.
ManufacLurlng complex for a varleLy of value added
LeaLher looLwear
LeaLher CarmenLs
LeaLher 8ags
aklsLan & lndla should cooperaLe Lo Lap Lhe global markeL &
expand markeL share.
23
IINF CF CONTROL JRADF
CIAIJI 3
IN C \ONT!O 1!A ITWN
INA AN IAKSTAN
lndla and aklsLan have allowed Lrade across Llne of ConLrol (LoC) boosLlng muLual
confldence, promoLlng economlc dlalogue and openlng a Lrade ouLleL for people of Lhe
Plmalayan reglon. 1he bllaLeral Lrade across Lhe border resumed afLer a perlod of 61
years. 1he border Lrade ls one of Lhe key confldence bulldlng measures (C8Ms) whlch was
agreed aL a meeLlng beLween rlme MlnlsLer of lndla, ur. Manmohan Slngh and aklsLan
resldenL Mr. Aslf All Zardarl ln new ?ork on SepLember 23, 2008. lnlLlally Lhe Lrade
began wlLh Lwlce a week-1uesday and Wednesday. 1hls has now been exLended Lo four
days - 1uesday, Wednesday, 1hursday and lrlday from !uly, 2011.
1rade across Llne of ConLrol ls resLrlcLed Lo 21 lLems whlch lnclude Lhe followlng:
lresh and dry frulLs,
CarpeLs,
Shawls,
lllow and plllow covers,
8lankeLs,
8ugs,
Woolen garmenLs
Masalas,
Poney,
eshwarl leaLher sllppers,
WalnuL - wood furnlLure,
Wall hanglngs,
Lmbroldery lLems,
1amarlnd,
Creen gram,
8lack mushrooms,
Saffron and popular vegeLable known as kadam.

27
LoC Lrade ls operaLlonal aL Lwo polnLs - utl-MozoffotoboJ ooJ looocb-kowolokote
tootes. 1lll uecember 2010, exporLs worLh 8s. 311.87 crore and lmporLs of 8s. 499.12
10
crore (ak currency) have Laken place . 1he LoC Lrade ls Larlff free. 1rade laclllLaLlon
CenLers were seLup ln 2010 - for url-Muzaffarabad Lrade rouLe aL Salamabad and for
oonch- 8awalakoLe Lrade rouLe aL Chakkan-da-8agh. 1hese cenLers lnspecL goods meanL
for Lradlng and also provlde a LelecommunlcaLlon llnk wlLh Lhe oLher slde. 1here ls no
quallLaLlve resLrlcLlon on Lrade. 1he goods belng Lraded Lhrough LoC are noL meanL for
re-rouLlng Lo oLher parL of elLher counLry. 1here ls also provlslon Lo revlew Lhls every
Lhree monLhs.
1he nexL sLep ln Lhe cross border Lrade beLween Lhe Lwo counLrles ls Lo add anoLher land
rouLe ln un[ab and allowlng Lrade Lhrough rall llnk beLween khokrapar ln Slnd and
Munabao ln 8a[asLhan. ln addlLlon, aklsLan ls llkely Lo lncrease Lhe number of
commodlLles allowed Lo be Lraded Lhrough Wagah - ALLarl border.
As Lhe Lrade ls duLy free and ln elLher currency, Lhe LoC Lrade would help aklsLan
malnLaln lLs forelgn exchange reserves lf Lhese producLs are lmporLed from lndla raLher
Lhan from oLher counLrles.
10
klto, Altof (2011), ctoss-loc ttoJe lo kosbmlt. ltomlloe of coottol to lloe of commetce" wotkloq lopet-
2011-20, lCluk. bttp.//www.lqlJt.oc.lo/pJf/pobllcotloo/wl-2011-020.pJf
28
IOTFNTIAL SFCTOR OF COOPFRATION
CIAIJI 4
IOTNTA :CTO! O
\OO!ATON
Agr|cu|ture:
Cement:
Lng|neer|ng Industry:
1ransport Lqu|pment:

lndla and aklsLan, boLh agrarlan economles, could cooperaLe ln agrlculLural
secLor whlch ls a ma[or componenL of Cu and largesL employmenL generaLlng secLor ln
elLher counLry. 1he food and agrl-buslness lndusLry has a slgnlflcanL lmpacL on Lhe
reglonal economy. 1hls lndusLry has one of Lhe hlghesL economlc mulLlpller effecLs
among Lhe varlous lndusLrles even ahead of Lelecom or power. Llberallzed lndla-aklsLan
Lrade ln agro secLor would glve furLher boosL Lo employmenL generaLlon ln boLh Lhe
counLrles. 1he recenL exporL of sugar, onlon, LomaLo, fresh meaL and llve anlmals from
lndla Lo aklsLan helped aklsLan Lo overcome shorL-Lerm flucLuaLlons ln supply.
1rade ln agrlculLure beLween lndla and aklsLan Llll daLe has been crlsls drlven. Powever,
lf a robusL regulaLory mechanlsm ls puL ln place ln boLh Lhe counLrles, agrlculLure Lrade
could well become markeL drlven. lnLegraLlon of markeLs across Lhe border would have a
favorable lmpacL on agrlculLure Lrade as lL shall even ouL flucLuaLlons ln supply, moderaLe
prlces and provlde a wlder baskeL of agrlculLural goods for consumpLlon.
1here has been sharp lncrease of exporL of cemenL from aklsLan Lo lndla ln
recenL pasL because of Lhe lncreaslng demand ln lndla. 1hls ls due Lo Lhe boom ln Lhe
houslng and consLrucLlon secLor. 8lslng Lrade ln cemenL ls wln-wln slLuaLlon for boLh
counLrles and wlll help aklsLan Lo reduce lLs Lrade deflclL wlLh lndla.
1rade llberallzaLlon wlLh lndla especlally for lron ore whlch ls an
lmporLanL raw maLerlal for sLeel lndusLrles wlll place Lhe englneerlng goods lndusLry of
aklsLan aL a slgnlflcanL advanLage by brlnglng down prlces of sLeel and LhaL of flnlshed
englneerlng goods. AL presenL, aklsLan lmporLs baslc raw maLerlal, lron ore, aL a hlgh
cosL from 8razll and AusLralla.
As a consequence of hlgh proLecLlon provlded Lo domesLlc auLo
assemblers (Lwo & four wheelers), prlces pald by aklsLan consumers are subsLanLlally
hlgher Lhan comparable prlces lnLernaLlonally. 8lcycle ls anoLher caLegory where lndlan
producLs could lmpacL Lhe aklsLan markeL parLlcularly lf Larlffs were Lo be lowered.
lndla's comparaLlve advanLage lles ln lLs lower sLeel prlce LogeLher wlLh scale economles.
31
1ea:
harmaceut|ca|:
1ext||e Mach|nery:
Chem|ca|s:
|ast|cs:
1ext||es:
etro|eum roducts:
aklsLan has recenLly emerged as Lhe largesL markeL for exporLs of lndlan Lea. lndla's
share of aklsLanl Lea markeL has lncreased ln recenL Llmes, however sLlll remalns low.
aklsLan has been sourclng mosL of lLs Lea from kenya. 1here ls lmmense poLenLlal for
lndlan Lea ln Lhe aklsLanl Lea markeL.
Conslderlng LhaL lndlan pharmaceuLlcal producLs are cheaper Lhan
aklsLanl producLs, lL would cerLalnly make a dlfference Lo Lhe common clLlzen ln
aklsLan. ln Lurn, Lhls would help lndlan pharmaceuLlcal producLs lncludlng bulk drugs
and formulaLlon Lo sell ln large volumes ln geographlcally proxlmaLe markeLs besldes
lmpacLlng poslLlvely on lndusLrlal growLh.
ln aklsLan, Lhere ls no hlgh-Lech LexLlle machlnery lndusLry. 1he
openlng of Lrade wlLh lndla would help aklsLan Lo acqulre Lhls machlnery dlrecLly aL
much lower prlces raLher Lhan hlgh cosL machlnery from Cermany. aklsLan has allowed
Lhe lmporLs of LexLlle machlnery from lndla and presenLs ma[or opporLunlLles for lndlan
flrms.
lmporL of cheaper chemlcals and dyes from lndla can parLlcularly help Lo
enhance compeLlLlveness of lLs leadlng exporL secLors l.e. LexLlle and leaLher.
aklsLan's plasLlc producLs could domlnaLe lndlan markeL buL for Lhelr hlgh cosL.
1hls ls largely due Lo Lhe machlnery lmporLed by Lhls lndusLry from 1alwan, korea and
Cermany. 1hls machlnery can be made avallable from lndla aL compeLlLlve raLes.
aklsLan has compeLlLlve advanLage ln coLLon LexLlle producLs whlch need Lo be
revlLallzed. lndla, on Lhe oLher hand, has an upper hand ln sllk and oLher synLheLlc flbre.
1he openlng up of Lrade wlll help aklsLan Lo acqulre LexLlle chemlcals and oLher lnpuLs aL
cheaper raLes and Lhus Lo make Lhelr producLs more compeLlLlve ln lnLernaLlonal markeL.
As of now, aklsLan has banned lmporLs of lndlan peLrol. 1hough lL
allowed dlesel lmporLs ln 2009, due Lo preferenLlal prlces offered by aklsLan's allles such
as kuwalL, supplles from lndla dld noL really Lake off.
Powever, lndla has offered Lo exporL peLrol, dlesel, and avlaLlon Lurblne fuel, fuel oll,
besldes sulphur, polyeLhylene and polypropylene Lo Lhe nelghbour. aklsLan ls currenLly
lmporLlng Lhese producLs from oLher counLrles. lmporLs from lndla wlll be advanLageous
for aklsLan as lL wlll be savlng on Lhe frelghL cosL slnce several lndlan reflnerles are
32
locaLed close Lo Lhe lndla-aklsLan border. 1he reflners who wlll beneflL lnclude lndlan Cll
CorporaLlon, 8ellance lndusLrles, Lssar Cll, and Lhe soon Lo be fully commlssloned
reflnery aL 8haLlnda.
lndla has esLabllshed lLself as a ma[or player ln Lhe lnformaLlon Lechnology segmenL. 1he
sofLware lndusLry ln aklsLan ls sLlll ln lLs nascenL sLages Lhough lL has a huge poLenLlal Lo
emerge as a ma[or sofLware exporLlng and Lralnlng cenLre. lndla and aklsLan could enLer
lnLo [olnL venLures Lo Lap Lhe global markeL for sofLware. 1he prospecLs for success ln Lhls

secLor seem Lo be good. As Lhe basls of lndla's comparaLlve advanLage ln l1 - low cosL
and quallfled Lngllsh-speaklng Lechnlcal personnel - ls repllcable ln aklsLan. ln Lerms of
lnfrasLrucLure requlremenLs, Lhe l1 secLor ls relaLlvely less demandlng, boLh ln Lerms of
11
sheer scale of lnvesLmenL and challenges of securlLy managemenL.
1he lndlan l1 Lralnlng markeL has also grown slgnlflcanLly. Several Lralnlng lnsLlLuLlons
such as nll1, A1LCP and SSl have seL up Lralnlng cenLers ln many counLrles lncludlng
SouLh Aslan counLrles. lndla and aklsLan could enLer lnLo collaboraLlve arrangemenLs Lo
seL up Lralnlng lnsLlLuLes ln aklsLan whlch would enable enlarge Lhe Lechnlcal workforce
ln aklsLan).
1ourlsm holds lmmense poLenLlal for Lhe Lwo counLrles. A llberal vlsa reglme as well as
lmproved LransporL llnkages would go a long way ln lmprovlng Lourlsm beLween Lhe Lwo
naLlons
aklsLanl paLlenLs could also come Lo lndla for LreaLmenL. Laslng vlsa resLrlcLlons would
greaLly help aklsLanls Lo come for LreaLmenL. So far, only a handful of aklsLanl paLlenLs
have vlslLed lndla for LreaLmenL. 8emoval of vlsa resLrlcLlons for paLlenLs, and for docLors
would greaLly faclllLaLe such Lrade.
Servlces:
a). Informat|on 1echno|ogy
b). 1our|sm
c). nea|th
11
loJetfottb, kotl l. 2011.loJlo-loklstoo 1toJe ooJ Otbet cboooels of oqoqemeot". ceotte fot 5ttoteqlc ooJ
lotetootloool 5toJles, Aptll 25, 2011.
33
d). Lnterta|nment
1he common culLure and language beLween lndla and aklsLan faclllLaLe lmmense
opporLunlLles for Lrade and cooperaLlon ln Lhe fllm, Lelevlslon and muslc secLor. 1hls
poLenLlal ln Lhe enLerLalnmenL lndusLry can be Lapped by encouraglng [olnL producLlons.
8emovlng Lhe ban on screenlng movles would beneflL boLh counLrles. Lxchanglng
broadcasLlng rlghLs Lo LelecasL each oLher's programmes on Lelevlslon ls yeL anoLher
Lrade opporLunlLy for Lhe Lwo counLrles. 8emoval of vlsa resLrlcLlons would encourage
lndlvlduals Lo parLlclpaLe ln each oLher's enLerLalnmenL lndusLrles.
34
NFRGY COOPFRATION
CIAIJI 5
IN!GY \OO!ATON
1he b|g benef|t - Gas |pe||ne: 1he greaLesL economlc beneflL of lmproved relaLlons
beLween lndla and aklsLan would occur ln Lhe sphere of energy cooperaLlon. lndla ls one
of Lhe mosL rapldly growlng energy markeLs ln Lhe world and wlll be able Lo absorb new
sources of supply as Lhey maLerlallze ln Lhe reglon. aklsLan's poLenLlal role ln fulfllllng
Lhls need ls noL as a suppller buL as a poLenLlal LranslL rouLe for energy from lran and
CenLral Asla. 1hls would requlre consLrucLlon of one or more new plpellnes, a ma[or
caplLal lnvesLmenL LhaL makes sense only lf Lhe pollLlcal sLablllLy and economlc feaslblllLy
of Lhe pro[ecL can be counLed on.
1he economlcs looks very promlslng. 1he Lwo ma[or pro[ecLs under conslderaLlon for a
very long perlod of Llme are Lhe lran-aklsLan-lndla (ll) plpellne and 1urkemlnlsLan-
AfghanlsLan-aklsLan-lndla (1Al) plpellne. 1he 1Al plpellne pro[ecL ls approxlmaLely
pegged aL a cosL of uSu 7.6 bllllon. As per Lhe laLesL arrangemenL agreed on - lndla wlll
pay LranslL fee Lo aklsLan and AfghanlsLan Lo geL lLs share of 38 mllllon sLandard cublc
meLers a day of gas Lhrough Lhe plpellne, whlle lslamabad wlll pay ferrylng charges Lo
12
AfghanlsLan .
lran-aklsLan-lndla (ll) plpellne pro[ecL ls a 2700 km plpellne from lran's SouLh ars
flelds ln Lhe erslan Culf Lo aklsLan's ma[or clLles of karachl and MulLan and Lhen furLher
Lo uelhl. lran ls offerlng Lo cover 60 percenL of Lhe consLrucLlon cosLs of Lhe plpellne. A
land-based plpellne would be four Llmes cheaper Lhan any oLher opLlon, even afLer Laklng
lnLo accounL LranslL fee paymenLs Lo aklsLan. aklsLan could earn LranslL fees from Lhe
13
plpellne and also would be able Lo purchase naLural gas from Lhe plpellne . aklsLan ls
expecLed Lo earn abouL uSu 200 - uSu 300 mllllon ln LranslL fee. lndla would beneflL from
dlverslfled sources of plpellne gas and lower dependence on more expenslve llquld
naLural gas (LnC). Lven wlLh LnC prlces dropplng, lndusLry sources belleve LhaL Lhere
would be a slgnlflcanL cosL advanLage, especlally Lo a plpellne from lran. 8oLh Lhese
pro[ecLs presenL a wln-wln opporLunlLy for boLh lndla and aklsLan and can go a long way
ln meeLlng Lhe energy requlremenLs ln one of Lhe world's fasLesL growlng reglons. Lnergy
cooperaLlon beLween lndla and aklsLan would have a sLablllzlng effecL on Lhe reglon as a
whole.
12
bttp.//www.tbebloJo.com/oews/ootloool/ottlcle28J2202.ece -
1J
bttp.//www.qolfollooJqos.com/webpto1/ptojects/JJtepott.osp?lJ=1007J0
37
LlecLrlclLy
ln recenL Llmes aklsLan has been faclng a ma[or power shorLage, from boLh gas and
elecLrlclLy sources. ln Lhls regard, lndla and aklsLan are conslderlng Lhe opLlon of
elecLrlclLy Lradlng. 1he flrsL meeLlng of Lhe !olnL Croup of LxperLs Lo examlne feaslblllLy of
Lh
Lrade of elecLrlclLy was held on 20 CcLober 2011 aL new uelhl. CenLral LlecLrlclLy

AuLhorlLy and ower Crld CorporaLlon of lndla llmlLed / ower SysLem CperaLlon
CorporaLlon LLd have been deslgnaLed as Lhe nodal Lechnlcal agencles from Lhe lndlan
slde. 1hey are lnLeracLlng wlLh naLlonal 1ransmlsslon and ulspaLch Company LLd of
aklsLan Lo work ouL Lhe opLlmal Lechnlcal soluLlons for grld connecLlvlLy beLween boLh
Lhe counLrles. A broad undersLandlng has been reached on posslble grld connecLlvlLy
14
beLween AmrlLsar-Lahore Lo enable Lrade of up Lo 300 MW of power .
14
Iolot stotemeot of tbe 6tb toooJ of tolks oo commetclol ooJ ecooomlc co-opetotloo betweeo commetce
sectetotles of loJlo ooJ poklstoo
38
INFRASTRUCTURAL AND
POLICY IMPFDIMFNTS
CIAIJI o
IN!AST!UCTU!A AN OCY
MMNTS
oslLlve LlsL Approach
lnfrasLrucLural 8arrlers and 8egulaLlons
1ransporL
{o) 4ir 1ronsport:
{b) koi/:
As dlscussed earller ln Lhls paper, aklsLan currenLly allows only 1938 lLems Lo be
lmporLed from lndla. 1hls resLrlcLs bllaLeral Lrade much below lLs poLenLlal. 1he poslLlve
llsL approach ls ln vlolaLlon of boLh SAl1A and W1C norms.
1he lnfrasLrucLure on border ls noL well equlpped Lo handle cross border Lrade and Lends
Lo be a ma[or lmpedlmenL. Lack of warehouslng and sLorage faclllLles along Lhe border
acL as a ma[or barrler. Manual daLa enLry and anLlquaLed cusLom procedures lead Lo
delays ln movemenL of cargo. Also, lack of proper LesLlng faclllLles along Lhe porL Lends Lo
cause unnecessary delays. 1he LransporL lnfrasLrucLure and regulaLlons relaLlng Lo Lhem
also acL as ma[or hlndrances.
Cne of Lhe ma[or reasons Lrade ls hampered ls Lhe llmlLed rouLes avallable for Lrade. 1hls
hlnders boLh Lhe movemenL of people as well as Lhe movemenL of goods.
Cnly 12 fllghLs are operaLlng beLween lndla and aklsLan per
week. 1he fllghLs operaLe beLween karachl-Mumbal and Lahore- uelhl. 1here are
no dlrecL fllghLs beLween Lhe caplLal clLles of lslamabad and new uelhl. number
of promlses has been made Lo lncrease Lhe number of fllghLs, however, no
slgnlflcanL change ln Lhls respecL has been wlLnessed so far. ln splLe of Lalks over
lncreaslng Lhe number of fllghLs beLween Lhe Lwo counLrles Lo 28 per week Lhe
plan ls yeL Lo maLerlallze.
1here are cerLaln facLors whlch hamper Lhe use of Lrade Lhrough Lhe rall
rouLe- llke avallablllLy of wagons, requlremenL of wagon balanclng, non-
conLalnerlzed rall wagons, and lnadequaLe handllng capaclLy aL Lahore and
lnsufflclenL lnfrasLrucLure faclllLles aL Lhe rall cargo sLaLlon. SomeLlmes alloLmenL
of wagons can Lake up Lo Lwo monLhs.
41
{c) kood:
vlsa
1he llmlLed number of enLry polnLs along Lhe border and slmllarly a cap on
1S
number of commodlLles whlch can be Lraded Lhrough Lhe land rouLes affecL
16
Lrade. Some of Lhe regulaLlons whlch hamper Lrade :
(l) 1rucks are only allowed Lo cross beLween 08:00 Lo 16:00 hours, Lhls ln Lurn
ofLen ls Lhe cause of congesLlon.
(ll) ConLalnerlzed Cargo ls noL permlLLed on land rouLes, resulLlng ln hlgher
lnsLances of damage and pllferage.
(lll) 8esLrlcLlon on Lonnage Lo 1 M1 for Lrucks and 21 lLems across LCC ln
kashmlr.
1he openlng up of second gaLe aL Wagah-ALLarl border wlLh warehouslng lnfrasLrucLure
along wlLh off-porL and on-porL faclllLles on boLh sldes would greaLly faclllLaLe Lhe Lrade
beLween lndla and aklsLan.
1o overcome Lhe lnfrasLrucLural lmpedlmenLs, boLh governmenLs have been worklng
Lowards developmenL of lnLegraLed Check osLs (lC) aL Wagah-ALLarl border. 1he
foundaLlon sLone aL ALLarl was lald on 20Lh lebruary, 2010. 1he work of physlcal
lnfrasLrucLure has however been delayed. As per Lhe revlsed schedule Lhe lC ls expecLed
Lo be operaLlonal by end of lebruary, 2012. 1he delay ls due Lo Lhe Llme Laken for arrlvlng
aL a muLually agreed slLe of Lhe second gaLe, declslon Lo consLrucL new road, delayed
declslon on fenclng, removal of Plgh 1enslon (P1) llne and declslon on PeaLlng
17
venLllaLlon and Alr CondlLlonlng (PvAC) .
As per Lhe laLesL assessmenL by Lhe MlnlsLry of Pome Affalrs, CovernmenL of lndla- aL
ALLarl, 97 of Lhe consLrucLlon work has been compleLed. CrlLlcal elemenLs such as
passenger Lermlnal bulldlng warehouses, subsLaLlon & roads are compleLe, mlnor works
ln no man's land &bulldlngs are belng done.
A ma[or barrler faced by Lhe buslness communlLy ls relaLed Lo vlsas. vlsas can be
obLalned only for speclflc clLles prlor Lo enLry lnLo aklsLan. Also pollce reporLlng on
arrlval ls a ma[or lrrlLanL. 8uslnessmen have also polnLed ouL LhaL Lhe resLrlcLlons on exlL
from Lhe clLy of enLry curbs Lhelr buslness plans and adds Lo Lravel cosL and Llme.
15
lot o JetolleJ llst of ltems petmltteJ to be lmpotteJ ftomloJlo loto loklstoo by tooJ, tefet AppeoJlx C of
1be lmpott lollcy 2009, Covetomeot of loklstoo. bttp.//www.commetce.qov.pk/5kOs/llO_2009.pJf
16
2007 1ooejo, Nlsbo 2007. loJlo loklstoo 1toJe losslbllltles ooJ Noo-totlff 8ottlets. lcklk wotkloq lopet
No. 200. New uelbl. loJloo cooocll fot keseotcb oo lotetootloool cooomlc kelotloos.
17
5totos kepott of loteqtoteJ cbeck losts os oo J1st uec 2011 bttp.//mbo.olc.lo/pJfs/8M-uOk-060112.pJf
42
CommunlcaLlon Llnks
8anklng
lnvesLmenLs
CommunlcaLlon llnks need Lo be lmproved lncludlng allowlng Lhe roamlng faclllLy on
moblle phones. unlnLerrupLed LelecommunlcaLlon llnks would faclllLaLe Lrade beLween
Lhe Lwo counLrles.
1he currenL paymenL sysLem ls formallzed Lhrough Aslan Clearlng unlon (ACu) whlch ls
lnefflclenL because Lhe paymenLs are ofLen delayed. 1he Lwo counLrles need Lo expedlLe
openlng up of scheduled bank branches ln each oLher counLrles whlch would promoLe
flnanclal efflclency, faclllLaLe Lrade and promoLe furLher economlc lnLeracLlons.
CurrenLly Lhere are no [olnL venLures beLween lndla and aklsLan. As several lndlan
companles are showlng an lnLeresL ln havlng [olnL venLures ln aklsLan, lL ls lmperaLlve Lo
undersLand Lhe naLure of such lnvesLmenL and provlde Llmely faclllLaLlon. 1he
CovernmenL of lndla and aklsLan should seL up lnsLlLuLlonal mechanlsm LhaL would
guaranLee proLecLlon of each oLher's lnvesLmenLs.
43
CONOMIC COST OF CONFLICT AND
CURRFNT CONOMIC IFLATIONS
CIAIJI 7
ICONOMC \OST O \ONCT
AN \U!!NT ICONOMC
IATONS
lndla-aklsLan Lrade Lakes place Lhrough Lwo channels - Lhe offlclal channel whlch ls qulLe
meagre and Lhe lnformal channel whlch lncludes Lrade vla Lhlrd counLry. Clven Lhe
markeL slze avallable ln Lhe Lwo counLrles, Lhe currenL volume of offlclal Lrade beLween
lndla and aklsLan ls [usL uSu 2.7 bllllon.
Powever, Lhe slze of lnformal Lrade underllnes Lhe poLenLlal of bllaLeral Lrade beLween
Lhe Lwo counLrles. lL ls esLlmaLed LhaL Lhe currenL unofflclal Lrade ls more Lhan uSu 10
bllllon. 1hese volumes of Lhlrd counLry and lnformal Lrade lndlcaLe Lhe Lremendous
poLenLlal for bllaLeral Lrade beLween Lhe Lwo counLrles.
1he normallzed economlc relaLlons would noL only beneflL Lhe governmenLs and
buslnessmen, buL also consumers across Lhe borders. 1he exchequer of boLh Lhe
counLrles wlll earn slgnlflcanL revenue, whlch ls losL due Lo unofflclal Lrade. ulrecL Lrade
would also ensure cheaper raw maLerlal lower LransporLaLlon cosL and wlder markeLs for
Lhe buslnessmen who would be en[oylng Lhe advanLage of geographlcal proxlmlLy (see
1able 4 below). 1he maln beneflclary would be Lhe consumer of Lhose producLs across
Lhe borders, as Lhey would beneflL from good quallLy producLs aL economlcal prlces wlLh
wlder varleLy.
1ab|e 4: keduct|on |n Cost |f |mported from Ind|a
Sector ak|stan's Cost keduct|on |f Imported
from Ind|a (in per cent)
SLeel 33
1ransporL LqulpmenL 26
Lnglneerlng goods 13
8lcycles 20
harmaceuLlcals 33
lrulLs & vegeLables 40
Sugar 30
5ootce. llccl 5otvey (2009)
47
lmpacL on SAl1A
1he lack of good relaLlons beLween Lhe Lwo counLrles has also affecLed Lhe SAl1A
agreemenL. Whlle lndla has glven Lhe Mln sLaLus Lo aklsLan buL lL has noL reclprocaLed
Lhe same and sLlll malnLalns a llmlLed llsL of poslLlve lLems whlch can be lmporLed from
lndla. lL ls expecLed LhaL Lhe bllaLeral Lrade would lncrease manlfolds, lf SAl1A ls
lmplemenLed ln leLLer and splrlL by aklsLan. 1he comparlson of lndla's bllaLeral Lrade
wlLh 8angladesh and Srl Lanka lndlcaLes LhaL ln splLe of blgger economlc slze, Lrade wlLh
aklsLan ls meagre aL uSu 2.7 bllllon.
1ab|e S: Compar|son w|th other SAAkC Countr|es
5ootce. wul & Mlolstty of commetce ooJ loJostty, loJlo
Country opu|at|on (|n m||||on) GD, (constant 1ota| 1rade w|th Ind|a
2010 est. 200S b||||on |n 2010-11 (|n USD
|nternat|ona| 5) b||||on)
8ang|adesh 148.69 221 (2010 esL.) 4.03
Sr| Lanka 20.86 93 (2010 esL.) 4.34
ak|stan 173.39 419 (2010 esL.) 2.67
48
IOCY ICOMMNATONS
CIAIJI 8
IOCY ICOMMNATONS

8llaLeral Lrade beLween lndla and aklsLan ls llmlLed Lo a llsL of 1938 lLems. 1hese
producLs alone are lmporLable from lndla. 1he resL of Lhe lLems are LoLally
banned. An analysls of Lhls llsL reveals LhaL a large number of Lhese lLems are
conflned Lo mlnerals, chemlcals and oLher raw maLerlals. MosL of Lhe
manufacLured flnlshed goods, bulk drugs and pharmaceuLlcals, LexLlle producLs
and food producLs are banned. lndlan lndusLry would llke Lhe aklsLan
CovernmenL Lo adopL Lhe negaLlve llsL approach aL Lhe earllesL and subsequenLly
granL Mln sLaLus Lo lndla.
1he advanLage of land conLlgulLy and low LransacLlon cosL for lndla - aklsLan
bllaLeral Lrade ls losL due Lo llmlLed Lrade land rouLes. llCCl has been suggesLlng
Lhe openlng up of an addlLlonal land rouLe aL Slndh border of Monabao-
khokhara ar ln addlLlon Lo Lhe openlng up of second gaLe aL ALLarl-Wagah
border. Pavlng a bllaLeral agreemenL on regular cargo movemenL and
warehouslng and oLher lnfrasLrucLural faclllLles on boLh Lhe sldes would greaLly
faclllLaLe Lhe Lrade beLween Lhe Lwo counLrles.
1here ls a large poLenLlal of Lrade ln servlces speclally exporL from lndla of
servlces llke l1 and l1 enabled servlces, medlcal, consLrucLlon, Lourlsm, eLc. 1he
lncluslon of Lhese servlces wlll noL only lncrease our exporLs Lo aklsLan buL also
Lechnologlcally upgrade Lhese secLors ln aklsLan.
AL presenL, Lhere ls no posslblllLy of seLLlng up [olnL venLures beLween Lhe Lwo
counLrles. Powever, poLenLlal exlsLs ln large number of areas lncludlng
chemlcals, plasLlcs, LexLlles, hydro-power, Lourlsm, lnformaLlon Lechnology,
LelecommunlcaLlons, auLomoblle anclllarles, envlronmenL, drugs and
pharmaceuLlcals and waLer managemenL.
llCCl has been suggesLlng a bllaLeral LreaLy on lnvesLmenL promoLlon and
proLecLlon. 1hls should remove Lhe apprehenslon ln aklsLan abouL belng
flooded wlLh lndlan goods and dlrecLly add value Lo Lhelr Cu, enhanclng Lhe
level of Lhelr lndusLrlallzaLlon.
31

Slnce Lhere are seasonal and perlodlc shorLages boLh ln lndla and aklsLan for Lhe
same klnd of agrlculLural lLems llke food gralns, sugar, onlon, poLaLoes eLc., lndla
and aklsLan can enLer lnLo speclal Lradlng arrangemenLs wlLh respecL Lo Lhese
agrlculLural lLems. 1hls wlll be muLually advanLageous and beneflL Lhe people on
elLher slde by removlng such shorLages LhaL resulL ln hlgher prlces.
Lconomlc engagemenL of any naLure wheLher Lrade ln goods or servlces or
lnvesLmenL presumes easy Lravel Lo each oLher's counLrles. lL ls necessary for
boLh Lhe governmenLs Lo work on easlng vlsa regulaLlons for buslnessmen. 1hls
means mulLlple enLry long-Lerm vlsas wlLh no clLy speclflc, no pollce reporLlng
whlch causes harassmenL for buslnessmen and dlscourages Lhem.
Many of Lhe aforesald lssues are belng dlscussed currenLly aL Lhe lnLer governmenLal
level (8efer 8ox 1 on page 14).
32
IICCI'S INITIATIVFS IN FOSTFRING
INDIA-IAKISTAN CONOMIC IFLATIONS
II\\IS INTATVS N OST!NG
INA-IAKSTAN ICONOMC
IATONS
lor achlevlng Lhe cherlshed goals, llCCl ls worklng lnLlmaLely wlLh lLs counLerparL apex
chamber, lederaLlon of aklsLan Chambers of Commerce and lndusLry (lCCl) for Lhe lasL
many years.
llCCl slgned a Mou ln 1999 wlLh lCCl Lo [olnLly form lndla-aklsLan Chamber of
Commerce and lndusLry (lCCl).
under Lhe umbrella of lCCl, several Lrade delegaLlons have been exchanged beLween
lndla and aklsLan. ln 2003, a 103 member llCCl buslness delegaLlon, Lhe largesL ever
lndlan Lrade delegaLlon led by Mr Cnkar S kanwar, Lhe Lhen resldenL llCCl, vlslLed
aklsLan. 1he delegaLlon was well recelved and had frulLful buslness lnLeracLlons across
aklsLan.
1o carry forward Lhe process, llCCl hosLed an 80-member buslness delegaLlon of lCCl ln
november, 2008. 1o mark Lhe occaslon, llCCl organlzed a conference on lndla-aklsLan
Lconomlc 8elaLlons" whlch was lnauguraLed by Mr !alram 8amesh, Lhe Lhen Pon'ble
MlnlsLer of SLaLe for Commerce &lndusLry and ower, CovernmenL of lndla.
Also, llCCl organlzed a 10-member and 3-member buslness delegaLlon ln 2006 and 2010
respecLlvely, on Lhe occaslon of aklsLan Lxpo held aL karachl.
8esldes promoLlng bl-dlrecLlonal Lrade delegaLlons, llCCl, ln lLs pursulL Lo presenL a
comprehenslve all lncluslve frame work for brlnglng abouL awareness Lowards lnherenL
buslness capablllLles of lndla and aklsLan, organlzed Made ln aklsLan" exhlblLlon aL
new uelhl ln 2004. Cver 300 aklsLanl buslnessmen parLlclpaLed ln Lhe hlghly successful
exhlblLlon. A culLural programme and food fesLlval were also organlzed aL Lhe sldellnes of
Lhe exhlblLlon.
ln Aprll 2010, llCCl organlzed an lnLeracLlve buslness meeLlng wlLh Per Lxcellency ur
llrdous Ashlq Awan, Pon'ble lederal MlnlsLer for opulaLlon Welfare of aklsLan aL new
uelhl. ln her address, Lhe Pon'ble MlnlsLer sLressed Lhe need Lo resume Lhe composlLe
dlalogue beLween our counLrles. ur. Awan also recognlzed LhaL a sLable aklsLan would
33
have far reachlng poslLlve lmpacL on Lhe enLlre reglon, especlally lndla. 1he vlslLlng
mlnlsLer also assured llCCl LhaL she would favourably look lnLo Lhe process of organlzlng
Lhe Made ln lndla" exhlblLlon ln aklsLan and on Lhe lssue of granLlng of Mln sLaLus Lo
lndla.
ln november 2010, llCCl successfully hosLed a 40 member sLrong buslness delegaLlon
from aklsLan Lo lndla and on Lhe occaslon organlzed a conference on lndla-aklsLan
Lconomlc 8elaLlons: rospecLs and Challenges whlch dellberaLed on lssues lmpedlng
Lrade and lnvesLmenLs and poLenLlal secLors of cooperaLlon beLween Lhe Lwo counLrles.
ln SepLember 2011, ln an endeavour Lo sLrengLhen Lhe bllaLeral economlc Lles wlLh
aklsLan, llCCl hosLed a hlgh powered 78 member offlclal-cum-buslness delegaLlon from
aklsLan led by Mr Makhdoom Muhammad Amln lahlm, Senlor MlnlsLer for Commerce,
CovernmenL of aklsLan. llCCl organlzed a serles of meeLlngs wlLh Lhe vlslLlng delegaLlon
aL Mumbal and new uelhl.
1he buslness-Lo-buslness and governmenL-Lo-buslness lnLeracLlon ls an lnnovaLlve, yeL
slmple meLhod of addresslng lnformaLlon gaps on Lhe buslness envlronmenL beLween Lhe
Lwo counLrles. 1hls noL only serves as a powerful means Lo confldence bulldlng buL ls an
effecLlve Lrade-faclllLaLlon measure.
lurLher Lowards Lhls end, ln november 2011, llCCl organlzed an lnLeracLlve meeLlng wlLh
aklsLan buslness delegaLlon whlch dellberaLed on lssues lmpedlng Lrade and
lnvesLmenLs and poLenLlal secLors of cooperaLlon beLween Lhe Lwo counLrles.
ln uecember 2011, llCCl organlzed 828 MeeLlng wlLh aklsLan 8uslness uelegaLlon from
Lahore Chamber of Commerce and lndusLry.
ln lebruary 2012, llCCl would be hosLlng an lndla Show ln Lahore from lebruary 11-13, ln
lLs pursulL Lo furLher bulld upon Lhe galns and lnlLlaLlves already underLaken and seeklng
newer opporLunlLles for promoLlng buslness Lles beLween lndla and aklsLan. A hlgh
powered CLCs' delegaLlon wlll be led by Mr. Anand Sharma, MlnlsLer of Commerce,
lndusLry and 1exLlle.
llCCl, as Lhe volce of Lhe whole of lndlan buslness and lndusLry, wlll work vlgorously Lo
furLher bulld upon Lhe galns and lnlLlaLlves already underLaken and seek new
opporLunlLles for promoLlng buslness Lles beLween lndla and aklsLan. llCCl wlll also
conLlnue Lo play lLs pro-acLlve role ln promoLlng reglonal lnLegraLlon ln SouLh Asla.
36
IAKISTAN CONOMY IN IIGURFS
1hls chapLer glves a graphlcal represenLaLlon of aklsLan's economlc lndlcaLors.
I|gure 4: ak|stan's GD growth per annum
0
1
2
3
4
3
6
7
8
9
Cu ( real change pa)
l
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1

e
r
c
e
n
t
a
g
e
5ootce. 5tote 8ook of loklstoo
I|gure S: Sector w|se growth
-3
0
3
10
13
20
AgrlculLure lndusLry ManufacLurlng Servlces

e
r
c
e
n
t
a
g
e
l
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1
1
Source: SLaLe 8ank of aklsLan noLe: lndusLry ls lncluslve of manufacLurlng. lor deLalls see World 8ank deflnlLlon.
39
IAKSTAN ICONOMY N IGU!S
I|gure 6: Sector w|se Compos|t|on of GD(2011)
Agr|cu|ture
22
Industry
2S
Serv|ces
S3
5ootce. 5tote 8ook of loklstoo
I|gure 7: Change |n r|ce Leve|
0
3
10
13
20
23
l
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1

e
r
c
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n
t
a
g
e
5ootce. 5tote 8ook of loklstoo
60
I|gure 8: I|sca| Def|c|t as a percentage of GD
-8
-7
-6
-3
-4
-3
-2
-1
0
llscal ueflclL ( of Cu)
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?
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1
1

e
r
c
e
n
t
a
g
e
5ootce. lotetootloool lloooclol 5totlstlcs, lMl
I|gure 9: Current Account 8a|ance as a percentage of GD
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
2.0
4.0
6.0
l?01 l?02 l?03 l?04 l?03 l?06 l?07 l?08 l?09 l?10 l?11
CurrenL - accounL balance ( of Cu)

e
r
c
e
n
t
a
g
e
5ootce. lotetootloool lloooclol 5totlstlcs, lMl
61
I|gure 10: Iore|gn D|rect Investment Inf|ows (USD b||||on)
lul lnflows (uSu bllllon)
0
1
2
3
4
3
6
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b
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5ootce. 5tote 8ook of loklstoo
0
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6
8
10
12
I|gure 11: Workers' kem|ttances |n USD b||||on
U
S
D

b
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o
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5ootce. 5tote 8ook of loklstoo
l
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14
16
Lendlng lnLeresL raLe () ueposlL lnLeresL raLe ()

e
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a
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e
I|gure 12: Lend|ng and Depos|t Interest kates
5ootce. 5tote 8ook of loklstoo
l
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1
0
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0
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0
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1
2
I|gure 13: Stock Market- kSL 100 Index (Month|y C|os|ng)
0
2000
4000
6000
8000
10000
12000
14000
16000
kSL 100
n
0
!
a
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5ootce. oboo lloooce
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30
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k
k

v
s

U
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D
I|gure 14: Lxchange kate: ak|stan kupee (kk) per US Do||ar (USD)
I|gure 1S: Iorex keserves exc| go|d (USD b||||on)
0
2
4
6
8
10
12
14
16
18
lorex 8eserves excl gold (uSu bllllon)
n
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5ootce. 5tote 8ook of loklstoo
64
5ootce. lotetootloool lloooclol 5totlstlcs, lMl
1ab|e S: ak|stan- Do|ng 8us|ness kank|ng
1op|c kank|ngs D8 2012 kank D8 2011 kank Change |n kank
SLarLlng a 8uslness 90 86
ueallng wlLh ConsLrucLlon 104 100
ermlLs
CeLLlng LlecLrlclLy 166 170
8eglsLerlng roperLy 123 123 no change
CeLLlng CredlL 67 64
roLecLlng lnvesLors 29 28
aylng 1axes 138 116
1radlng Across 8orders 73 73 no change
Lnforclng ConLracLs 134 133
8esolvlng lnsolvency 74 71
-4
-4
-3
-1
-42
-3
4
1
5ootce. uoloq 8osloess kepott, wotlJ 8ook
bttp.//www.Joloqbosloess.otq/Joto/exploteecooomles/poklstoo
63
AIIIIX
ANX
1P
!Cln1 S1A1LMLn1 Cl 1PL 6 8Cunu Cl 1ALkS Cn CCMML8ClAL
Anu LCCnCMlC CC-CL8A1lCn 8L1WLLn CCMML8CL SLC8L1A8lLS
Cl lnulA Anu AklS1An
Lh
1he 6 round of lndla-aklsLan Lalks on Commerclal and Lconomlc Co-operaLlon was held
Lh Lh
durlng 14 -16 november 2011 aL new uelhl, beLween Commerce SecreLarles of lndla
and aklsLan under Lhe dlalogue process whlch sLarLed ln 2004.
2. 1he aklsLan delegaLlon was led by Zafar Mahmood, SecreLary, Commerce and Lhe
lndlan delegaLlon was led byCommerceSecreLary, 8ahul khullar.
3. 8oLh sldes expressed saLlsfacLlon wlLh Lhe overall progress belng made Lo fully
normallzeLhebllaLeral Lradlng relaLlonshlp. 1o Lakeforward Lhedeclslons Laken durlng
Lh
Lhe 3 round of Lalks ln Aprll 2011, many bllaLeral Croups/Sub-groups were seL up.
AlmosL all of Lhese Croups/Sub-groups have meL and worked on Lhelr speclflc
deslgnaLed Lasks. 1he Worklng Croup Lo address secLor-speclflc barrlers Lo Lrade meL
ln AugusL, 2011. 1he !olnL 1echnlcal Croup Lo oversee progress ln developmenL of
physlcal lnfrasLrucLure aL ALLarl-Wagah Land CusLoms SLaLlon has meL frequenLly. 1he
CusLoms Llalson 8order CommlLLee was formallzed and has meL aL bl-monLhly
lnLervals and done commendable work ln faclllLaLlon of all Lrade conslgnmenLs. 1he
!WC on Lconomlc and Commerclal CooperaLlon, and Lhe Sub-Croup on CusLoms
CooperaLlon meL ln AugusL 2011. 1he flrsL meeLlng of Lhe Croup of LxperLs on Lrade ln
elecLrlclLy was held ln CcLober 2011and LheSub-Croup Lo faclllLaLeLradeln peLroleum
producLs ls slaLed Lo meeL ln uecember 2011. 8oLh sldes agreed LhaL Lhe momenLum
of work and Lhe deLermlnaLlon Lo move forward had LransmlLLed poslLlve slgnals

abouL advanclng Lhe bllaLeral Lrade agenda. ln Lhls conLexL, lndla welcomed Lhe
declslon Laken by aklsLan Lo accord MosL lavoured naLlon (Mln) sLaLus Lo lndla and
Lo Lhe mandaLe glven for full normallzaLlon of Lhe bllaLeral Lrade relaLlons, as also
meeLlng of all legal obllgaLlons.
4. 1he Commerce MlnlsLers of boLh counLrles meL ln SepLember 2011 and gave a clear
pollLlcal mandaLe Lo Lhe respecLlve Commerce SecreLarles Lo lay down speclflc
Llmellnes for full normallzaLlon of Lhe Lrade relaLlonshlp, dlsmanLllng of remalnlng
non-Larlff barrlers, and full lmplemenLaLlon of Lhe legal obllgaLlons under Lhe SAA8C
AgreemenL on SouLh Aslan lree1radeArea(SAl1A). 8oLh sldes agreed LhaL aklsLan's
Commerce MlnlsLer's vlslL Lo lndla afLer 33 years and Lhe pollLlcal ownershlp of
69
leaders of boLh Lhe counLrles has noL only glven Lhe Lrade normallzaLlon process
furLher sLrengLh and dlrecLlon buL a greaL hope and confldence Lo Lhe buslness
communlLy also. 1hey expressed hope LhaL poslLlve developmenLs ln Lhe Lrade Lrack
would encourageslmllar progress ln oLher componenLs of Lhedlalogueprocess.
Lh
3. uurlng Lhe 17 SAA8C SummlL held aL Maldlves (9 - 11 november 2011), Lhe pollLlcal
leadershlp on boLh sldes dlrecLed LhaL Lhe Lwo sldes also work on enhanclng
preferenLlal Lradlng arrangemenLs as parL of Lhe shared vlslon Lo slgnlflcanLly expand
bllaLeral Lrade.
6. aklsLan sldelnformed LhaL lLs CablneL has glven a mandaLeLo LheCommerceMlnlsLry
for compleLe normallzaLlon of Lrade wlLh lndla. lL appreclaLed lndla's supporL ln W1C
for Lhe Lu concesslon package for aklsLan whlch would glve Lhe aklsLanl buslness
communlLy confldence and creaLe an envlronmenL of LrusL and cooperaLlon. 1he
lndlan slde welcomed Lhe CablneL declslon and relLeraLed lLs supporL for Lhe
normallzaLlon process and bulldlng LrusL.
Lh
7. ln conLexL of ouLcomes agreed ln Lhe 3 round of Lalks, progress was revlewed and
furLher declslons Laken as follows:
(l) 1he move Lo full normallzaLlon of Lrade relaLlons shall be sequenced. ln Lhe flrsL
sLage, aklsLan wlll LranslLlon from Lhe currenL oslLlve LlsL approach Lo a
negaLlve LlsL. 1he consulLaLlon process on devlslng Lhls negaLlve LlsL ls almosL
compleLe. A small negaLlve LlsL shall be flnallzed and raLlfled by lebruary, 2012.
1hereafLer, all lLems oLher Lhan Lhose on Lhe negaLlve LlsL shall be freely
exporLable from lndla Lo aklsLan. ln Lhe second sLage, Lhe negaLlve LlsL shall be
phased ouL. 1heLlmlng for Lhls phaslng ouL wlll beannounced ln lebruary 2012aL
Lhe Llme Lhe LlsL ls noLlfled and lL ls expecLed LhaL Lhe phaslng ouL wlll be
compleLed beforeLheend of 2012.
(ll) ln Lerms of Lhe clear mandaLe glven by Lhe pollLlcal leadershlp, boLh sldes agreed
Lo move Lowards enhanclng Lhe preferenLlal Lradlng arrangemenLs under Lhe
SAl1A process. As agreed earller, bllaLeral Lrade can be slgnlflcanLly expanded by
exLendlng Larlff concesslons on producLs of commerclal lnLeresL. 8oLh sldes
deslgnaLed Lhe !olnL SecreLarles ln Lhelr respecLlve MlnlsLrles of Commerce as
Chlef negoLlaLors for worklng on how Lo lmprove preferenLlal Lradlng
arrangemenLs under SAl1A.
A. 1radenormallzaLlon:
70
8. 1radelnfrasLrucLure:
C. new 1radelnlLlaLlves:
u. non-1arlff 8arrlers:
8oLh sldes revlewed Lhe progress made ln developlng physlcal lnfrasLrucLurefor Lrade
Lhrough Lhe ALLarl-Wagah land rouLe. lL was agreed LhaL Lhe !olnL 1echnlcal Croup
overseelng Lhe work would meeL aL Lhe end of november 2011 and Lhere would be
follow-up monLhly meeLlngs ln uecember 2011 and !anuary 2012. lL was also agreed
LhaL all lnfrasLrucLure consLrucLlon would be compleLed and fully operaLlonal no laLer
Lhan Lheend of lebruary 2012. 1hls Llmellnewould colncldewlLh LheannouncemenL
of Lhe negaLlve LlsL (See para 7 A (l) above). 1he new Lradlng reglme wlll Lhus be
appllcable Lo all Lrade Lhrough Lhe land rouLe afLer Lhe lnfrasLrucLure aL ALLarl-Wagah
ls commlssloned.
(l) 1he flrsL meeLlng of Lhe !olnL Croup of LxperLs Lo examlne feaslblllLy of Lrade of
Lh
elecLrlclLy was held on 20 CcLober 2011 aL new uelhl. CenLral LlecLrlclLy
AuLhorlLy and ower Crld CorporaLlon of lndla llmlLed/ower SysLem CperaLlon
CorporaLlon LLd have been deslgnaLed as Lhe nodal Lechnlcal agencles from Lhe
lndlan slde. 1hey are lnLeracLlng wlLh naLlonal 1ransmlsslon and ulspaLch
Company LLd of aklsLan Lo work ouL Lhe opLlmal Lechnlcal soluLlons for grld
connecLlvlLy beLween boLh counLrles. A broad undersLandlng has been reached
on posslble grld connecLlvlLy beLween AmrlLsar-Lahore Lo enable Lrade of up Lo
300 MW of power. 1he second meeLlng of Lhe LxperLs ls scheduled Lo be held ln
lslamabad ln Lhe flrsL week of uecember, 2011. lL ls expecLed LhaL Lhe Croup of
LxperLs wlll reach aflnal undersLandlng on grld connecLlvlLyaL Lhls meeLlng.
(ll) 8egardlng Lrade ln peLroleum producLs, lL was agreed LhaL Lhe !olnL Croup would
hold lLs flrsL meeLlng before!anuary 2012.
(l) A !WC meeLlng was held ln AugusL, 2011, co-chalred by Lhe !olnL SecreLarles of
Lhe respecLlve Commerce MlnlsLrles. 1he aklsLan slde furnlshed a speclflc llsL of
non-Larlff barrlers, as percelved by Lhelr buslness communlLy, for secLors such as
LexLlles, leaLher, cemenL, agrlculLural produce and surglcal lnsLrumenLs. lL was
agreed LhaL Lhese would be comprehenslvely examlned on Lhe lndlan slde and
lnLeracLlons would be arranged beLween Lhe concerned 8egulaLors and
aklsLan's buslness communlLyLo dlscuss and flnd soluLlons for all lssues ralsed.
71
(ll) A comprehenslvedlscusslon, nuLs and 8olLs of 1radelaclllLaLlon", was organlsed
ln uelhl by llCCl, on 29.09.2011. arLlclpanLs lncluded aklsLan and lndlan
buslness delegaLes, Lechnlcal experLs, represenLaLlves of lndlan regulaLory
bodles, and senlor governmenL offlclals. 1he feedback recelved was LhaL Lhls
semlnar had been mosL useful Lo address lssues ralsed bybuslnesspersons as well
as Lo dlspel mlsapprehenslons. lL was clarlfled LhaL all sLandards and
speclflcaLlons were non-dlscrlmlnaLory, vlz., Lhey applled Lo all counLrles
exporLlng goods Lo lndla. 1he dlscusslons also explalned how lnslsLence on
speclflc sLandards by lmporLers was due Lo commerclal conslderaLlons and noL
becauseof anyCovernmenL requlremenL.
(lll) A comprehenslve speclal sesslon was held durlng Lhls round of Lalks on maLLers of
concern Lo aklsLan slde. ueLalled responses were provlded by concerned
offlcers on Lhe lndlan slde. A summary of lssues ralsed and addressed ls aL
Annexure.
(lv) lL was agreed LhaL Lhe !WC would conLlnue lnLeracLlon Lo address any clearly
ldenLlfled secLor-speclflc barrlers Lo Lrade. 1he !olnL SecreLarles of Lhe respecLlve
Commerce MlnlsLrles would convene focused meeLlngs on Lhese lssues, as
necessary. A delegaLlon comprlslng offlcers from varlous regulaLory bodles would
vlslL Lahore/karachl ln Lhe flrsL quarLer of 2012 Lo provlde necessary ouLreach so
LhaL buslnesspersons ln aklsLan can be beLLer lnformed abouL lndla's Lrade
regulaLlons, sLandards and labellng/ marklng requlremenLs.
(v) 8oLh sldes agreed Lo lnlLlaLe Lhe process of a llmlLed M8A as a formal mechanlsm
Lo address Lhelssues of sLandards and conformlLyassessmenL.
(vl) lL was agreed LhaL Lhere was a need Lo lnsLlLuLe a mechanlsm for redresslng
grlevances arlslng from clearance of Lrade conslgnmenLs aL land, sea and
alrporLs. aklsLan slde proposed LhaL an agreemenL be concluded beLween boLh
counLrles Lo address Lhe concerns of Lhe buslness communlLy. lndlan slde agreed
Lo conslder Lhls proposal and underLakefurLher consulLaLlons ln Lhls maLLer.
(l) 8oLh sldes appreclaLed Lhe work done by Lhe CusLoms Llalson 8order CommlLLee
(CL8C) ln resolvlng Lhe operaLlonal lssues aL Wagah-ALLarl. 1he CL8C was
mandaLed Lo underLake a comprehenslve overvlew of Lhe requlremenLs Lo
L. 1radefaclllLaLlon.
72
ensure expedlLlous clearance of goods lncludlng harmonlzaLlon of cusLoms
procedures and Lo make recommendaLlons Lo Lhe !olnL Worklng Croup on
Lconomlc and Commerclal cooperaLlon.
Lh
(ll) 1he Sub Croup on CusLoms CooperaLlon meL ln new uelhl on 24 AugusL 2011. lL
dlscussed lssues relaLlng Lo harmonlzaLlon ln cusLoms procedures, faclllLaLlon of
Lrade conslgnmenLs, and exchangeof Lrade daLa and lnformaLlon. nodal cusLoms
offlcers on boLh sldes have been noLlfled. 1hey would malnLaln dlrecL conLacL on
all maLLers perLalnlng Lo delays ln Lrade conslgnmenLs, Lrade documenL
requlremenLs, and oLher maLLers of cusLoms cooperaLlon.
(lll) 1he aklsLan slde handed over a drafL of Lhe CusLoms CooperaLlon AgreemenL.
8oLh sldes agreed LhaL besL efforLs would be made Lo flnallse Lhe AgreemenL by
sL
31 !anuary, 2012.
(l) 8egardlng 8L coLLon seed lmporLs from lndla, lL was noLed LhaL CovernmenL of
aklsLan has consLlLuLed a commlLLee Lo examlne Lhls lssue. 1he flrsL sLep may be
permlLLlng llmlLed lmporL solelyfor Lhepurposeof fleld Lrlals ln aklsLan.
(ll) 8oLh sldes reallzed LhaL Lhere ls a poLenLlal for cooperaLlon ln lnformaLlon
1echnology, however, lack of lnformaLlon regardlng capaclLy of aklsLanl l1
companles, dlfflculLy ln avallablllLy of vlsa for Lechnlcal sLaff and absence of
banklng faclllLles has hlndered cooperaLlon ln l1 beLween Lhe Lwo counLrles. lL
was agreed LhaL nASSCCM ln coordlnaLlon wlLh aklsLan SofLware LxporL
uevelopmenL 8oard would faclllLaLe a road show for aklsLanl l1 companles aL
8angalore, Pyderabad and oLher lndlan l1 Pubs ln lebruary, 2012.
(l) 1o boosL bllaLeral buslness confldence for enhanced bllaLeral Lrade, boLh sldes
agreed Lo encourage greaLer lnLeracLlon amongsL Lhe buslness enLlLles. lL was
noLed wlLh saLlsfacLlon LhaL Apex Chambers of Commerce and lndusLry on boLh
sldes have formed a !olnL lndla-aklsLan Chamber aL Lhe apex level (llCCl and
lCCl). Slmllarly, arrangemenLs have been worked ouL for reglonal-level
Chambers beLween 8ombay and karachl. lL ls expecLed LhaL a slmllar [olnL
arrangemenLs beLween LheLahoreand PuChambers would beworked ouL.
l. Lconomlc CooperaLlon.
C. 8uslness Lo 8uslness lnLeracLlons:
73
(ll) lL was agreed Lo glve a greaLer LhrusL Lo Lhls 8-Lo-8 lnLeracLlon of Lrade
delegaLlons. lL was necessary Lo expand ouLreach and lnformaLlon dlssemlnaLlon
acLlvlLles Lo brldgelnformaLlon gaps relaLlng Lo bllaLeral Lradlng envlronmenL and
economlc opporLunlLles. 1he lndlan slde noLed Lhe aklsLan slde's requesL for
mounLlng a 1rade uelegaLlon comprlslng represenLaLlves of prlvaLe secLor who
are responslble for procuremenL of goods for deparLmenLal sLores, large reLall
shopplng chalns and whole-saledlsLrlbuLors.
(lll) lL was noLed wlLh saLlsfacLlon LhaL lndla1raderomoLlon CrganlzaLlon (l1C) and
1rade uevelopmenL AuLhorlLy of aklsLan (1uA) had enLered lnLo a MCu for
collaboraLlve efforLs Lo promoLe bllaLeral Lrade. 1he posslblllLy of llLCmounLlng
a Lrade exhlblLlon aL Lahore Lxpo was also explored, Lhls could be done ln
lebruary, 2012. 1uA lnLlmaLed LhaL Lhey would llke Lo organlze a llfesLyle
exhlblLlon ln new uelhl ln March, 2012 and lnvlLed lndlan parLlclpaLlon aL Lhe
Agro-rocesslng valueAddlLlon LxhlblLlon scheduled Lo beheld ln karachl.
(l) 8oLh sldes agreed LhaL Lhe presenL vlsa reglme for buslnesspersons was a
slgnlflcanL barrler Lo Lhe rapld expanslon of Lrade. lL was noLed LhaL Lhe lnLerlor
MlnlsLry of aklsLan and lndla's MlnlsLry of Pome Affalrs had reached a broad
undersLandlng Lo puL ln place reclprocal arrangemenLs whlch shall subsLanLlally
llberallse Lhe vlsa provlslons for buslness persons. ulscusslons were held on how
Lhere would be furLher lmprovemenLs on Lhe undersLandlng already reached. lL
was agreed LhaL besL efforLs would be made by Lhe respecLlve Commerce
SecreLarles Lo push for furLher llberallsaLlon of Lhe buslness vlsa arrangemenLs.
Powever, wlLh or wlLhouL enhanced provlslons, boLh sldes would work wlLh Lhelr
respecLlve auLhorlLles Lo ensure LhaL Lhe llberallsed vlsa provlslons already
agreed Lo arepuL ln placebeforeLheend of uecember, 2011.
(ll) 1he lssue of promoLlon of bllaLeral lnvesLmenL was dlscussed. lL was agreed LhaL
boLh sldes would conLlnueefforLs Lo removelmpedlmenLs Lo such lnvesLmenLs.
(lll) Cn Lhe openlng of bank branches ln each oLher's counLrles, lL was agreed LhaL Lhe
CenLral 8anks of boLh counLrles need Lo furLher dlscuss Lhls lssue. AcLual dlalogue
needs Lo LakeplaceLhrough abllaLeral vlslL.
P. CLher LraderelaLed lssues:
74
8. ln concluslon, Lhe Commerce SecreLarles of boLh counLrles expressed falLh ln Lhe
ongolng process for lncrease ln bllaLeral Lrade. lnsLlLuLlonal arrangemenLs puL ln place
for promoLlng bllaLeral Lrade and commerce would conLlnue and Lhe concerned
worklng groups shall meeL as requlred, Lo Lake forward Lhe charLed roadmaps ln Lhls
Lh
6 round of Lalks.
Lh
9. 1he7 round of Lalks would Lakeplaceln aklsLan ln Aprll/Mayof 2012.
10. 1heLalks wereheld ln avery cordlal and consLrucLlveaLmosphere.
73
ANNXU!
ln Lhe bllaLeral Lalks held Loday, a speclflc sloL was alloLLed for dlscusslng Lhe 'non-Larlff
barrlers' percelved by aklsLan slde ln respecL of Lhelr exporLs Lo lndla.
8epresenLaLlves from 8lS, ueparLmenL of 8evenue, MlnlsLry of 1exLlles, MlnlsLry of
PealLh and lamlly welfare, ueparLmenL of AgrlculLure and CooperaLlon, and MlnlsLry of
LxLernal Affalrs aLLended Lhe meeLlng.
S|.no. Issue Status
lndlan slde sLaLed LhaL Lhere are 120 labs
recognlzed by lL whlch are allowed Lo draw and
LesL samples of cemenL as per Lhe slmpllfled
procedure adopLed for L he domesL l c
manufacLurers. Cn Lhe basls of Lhese LesL
reporLs, 8lS lssues producL cerLlflcaLe. A vlslL by a
8lS Leam ls mandaLory before a regular llcense
can belssued, as per domesLlc regulaLlons.
aklsLan slde was lnformed LhaL 13 llcenses are
already operaLlonal. Cne appllcaLlon for granL of
llcense was recelved ln Lhe monLh of CcLober,
2011. 8lS has already nomlnaLed an offlcer for
conducLlng Lhe lnspecLlon vlslL. 8oLh sldes
agreed LhaL aklsLan slde wlll suggesL Lhe daLe for
LhevlslL.
aklsLan slde was lnformed LhaL 8lS ls mandaLed
Lo glve llcense wlLhln slx monLhs and Lhe
lnspecLlon vlslL has Lo be compleLed wlLhln 1-2
monLhs afLer an appllcaLlon ls reglsLered.
Powever, ln case of aklsLan slLe vlslLs, delay
mosLly occurs because Lhe Leam ls noL allowed
cerLaln slLevlslLs dueLo securlLyreasons.
aklsLan governmenL assured Lo make requlred
securlLy arrangemenLs so LhaL Lhe lnspecLlon
vlslLs by8lSLeam can beconducLed ln Llme.
aklsLan slde was also lnformed LhaL 8lS has been
granLlng renewal llcenses for Lwo years Lo Lhose
aklsLanl cemenL manufacLurers who have
applled for Lhesame.
Compulsory
cerLlflcaLlon/long
Llme ln renewal of 8lS
cerLlflcaLe for cemenL.
1.
76
S|.no. Issue Status
(l) lndlan slde sLaLed LhaL Lhe Lolerance llmlL
speclfled ls 10 and Lhe counLry of orlgln
needs Lo cerLlfy Lhe LoLal quanLlLy belng
exporLed. 1he only excepLlon ls tero
to/eronce ln respecL of a phyLo-sanlLary
cerLlflcaLe. lL ls unaccepLable lf Lhere ls a
dlfference ln Lhe quanLlLy speclfled ln Lhe
phyLo-sanlLary cerLlflcaLe vls--vls Lhe
quanLlLy exporLed. aklsLan also follows Lhe
same procedure ln case of phyLo-sanlLary
cerLlflcaLe.
(ll) lndlan slde also sLaLed LhaL producL source ls
lmporLanL for SS concerns. lresh frulLs and
vegeLables are LesLed aL Lhe laboraLory aL
ALLarl and conslgnmenLs are cleared wlLhln 6
hours. lurLher, all perlshable conslgnmenLs
are cleared wlLhln Lhe same day and no
delays arebelng reporLed.
CpaclLy of SS
measures/lmporL
permlL/non-avallablllLy
of labs
2.
lndlan slde agreed Lo send a Leam for educaLlng
Lhe exporLers reg. packaglng and labelllng
requlremenLs as and when requesLed for by Lhe
aklsLanl auLhorlLles.
lndlan slde lnformed LhaL slnce Azodyes are
banned ln lndla, LesLlng for Lhese ls a mandaLory
requlremenL. aklsLan slde lnformed LhaL
Azodyes are banned ln aklsLan and Lherefore, no
manufacLurer uses Lhem. 1esLlng laboraLorles
are avallable ln Mumbal and uelhl. no
complalnLs of delays have been recelved. 1he
test|ng procedure |nc|udes draw|ng of a 2S
samp|e (by we|ght) on|y |f the cons|gnments are
not cert|f|ed by the country of or|g|n. A
cert|f|cate by accred|ted Cert|f|cat|on 8od|es]
Labs of ak|stan Nat|ona| Accred|tat|on Counc||
(www.pnac.org.pk) |s acceptab|e.
aklsLan slde was also lnformed LhaL cerLlflcaLes
lssued by lnLernaLlonal accredlLed labs under Lhe
W1C lnLernaLlonal AccredlLaLlon rocedures are
accepLed. lndla follows Lhe lnLernaLlonal
proLocol for LesLlng. lf aklsLan has accredlLed
W1C labs, cerLlflcaLes lssued by Lhe same can be
accepLed.
lood roducLs - LesLlng
and packaglng
requlremenLs
3.
1exLlle Consumer
roLecLlon 8egulaLlons -
-1esLlng for Azodyes
4.
77
S|.no. Issue Status
8lS lnformed LhaL lL has noL prescrlbed any
mandaLory requlremenLs as regards sLandards on
1exLlles. Powever, lf any counLry requlres a
cerLlflcaLe/llcense lL has Lo apply for lL and Lhe
cerLlflcaLe/llcense wlll be glven afLer an
lnspecLlon vlslL.
lndlan slde sLaLed LhaL CovernmenL of lndla does
noL regulaLe lmporL of surglcal lnsLrumenLs and
Lherefore does noL lnslsL on any lCAC mark. 8lS
cerLlflcaLlon ls sufflclenL, even Lhls ls volunLary
and noL mandaLory. lL ls Lhe buyers who declde
on Lhe speclflc cerLlflcaLes requlred or Lhese
cerLlflcaLes may be made compulsory by lncluslon
lnLo LheLender condlLlons.
lndlan slde sLaLed LhaL no delays have been
recorded buL lf Lhere are any speclflc cases, Lhe
same wlll be addressed as and when Lhe aklsLanl
slde provldes deLalls. lurLher, Lhe aklsLanl slde
was also lnformed LhaL all Lhe conslgnmenLs
excepL whl ch requl re oLher mandaLory
procedures Lo be followed are cleared wlLhln 24
hours. Lven Lhose conslgnmenLs whlch faulL on
some cusLoms procedure are cl eared
lmmedlaLely wlLh Lhe undersLandlng LhaL Lhe
problems wlll besorLed ouL ln Llme.
lndlan slde sLaLed LhaL Lhelr valuaLlon sysLem ls
based on Lhe W1C AgreemenL on CusLoms value
whlch provldes for Lhe LransacLlon value concepL
and Lhe clrcumsLances for re[ecLlon and re-
deLermlnaLlon of Lheassessablevalue. ln caseof a
dlspuLe, an assessmenL order ls lssued whlch can
be appealed agalnsL Lhrough a clearly lald down
channel of appeals.
8oLh sldes agreed LhaL speclflc commodlLles of
exporL lnLeresL Lo aklsLan and Lhelr orLs of enLry
can be ldenLlfled Lo faclllLaLe fasLer clearance of
conslgnmenLs.
Marklng and labellng
requlremenLs for
cloLh and 8eady Made
CarmenLs (8MCs).
Surglcal lnsLrumenLs -
lndlan ConformlLy
AssessmenL CerLlflcaLe
(lCAC) mark
3.
CusLoms rocedure
- uelay ln CusLoms
clearance
6.
-valuaLlon procedures
78
n C 1 L S
n C 1 L S
lederaLlon of lndlan Chambers of Commerce and lndusLry
lederaLlon Pouse, 1ansen Marg, new uelhl - 110 001
1el : +91 11 23738760-70 (11 Llnes)
lax : +91-11-23320714
L-mall : saarc[flccl.com
WebslLe : www.flccl.com
AbouL llCCl
LsLabllshed ln 1927, llCCl ls Lhe largesL and oldesL apex buslness organlsaLlon ln lndla. lLs hlsLory
ls closely lnLerwoven wlLh lndla's sLruggle for lndependence and lLs subsequenL emergence as
one of Lhe mosL rapldly growlng economles globally. llCCl plays a leadlng role ln pollcy debaLes
LhaL are aL Lhe forefronL of soclal, economlc and pollLlcal change. 1hrough lLs 400 professlonals,
llCCl ls acLlve ln 33 secLors of Lhe economy. llCCl's sLand on pollcy lssues ls soughL ouL by Lhlnk
Lanks, governmenLs and academla. lLs publlcaLlons are wldely read for Lhelr ln-depLh research
and pollcy prescrlpLlons. llCCl has [olnL buslness counclls wlLh 73 counLrles around Lhe world.
A non-governmenL, noL-for-proflL organlsaLlon, llCCl ls Lhe volce of lndla's buslness and lndusLry.
llCCl has dlrecL membershlp from Lhe prlvaLe as well as publlc secLors, lncludlng SMLs and MnCs,
and an lndlrecL membershlp of around 2,30,000 companles from reglonal chambers of
commerce.
llCCl works closely wlLh Lhe governmenL on pollcy lssues, enhanclng efflclency, compeLlLlveness
and expandlng buslness opporLunlLles for lndusLry Lhrough a range of speclallsed servlces and
global llnkages. lL also provldes a plaLform for secLor speclflc consensus bulldlng and neLworklng.
arLnershlps wlLh counLrles across Lhe world carry forward our lnlLlaLlves ln lncluslve
developmenL, whlch encompass healLh, educaLlon, llvellhood, governance, sklll developmenL,
eLc. llCCl serves as Lhe flrsL porL of call for lndlan lndusLry and Lhe lnLernaLlonal buslness
communlLy.