Pakistan lifts trade restrictions with India

Islamabad (Dawn/ANN) - The Pakistan federal cabinet on Wednesday flung open the doors for trade with India by raising the number of items that can be imported from the country from 1,946 to almost 5,600.

The decision overruled reservations of the ministries of textile and industries which had been pushing for restricted trade with India to protect domestic manufacturers.

The cabinets decision will allow the import of about 90 per cent of all the items that India normally exports.

Before this decision, the "positive list" allowed only 17 per cent Indian export items.

From January 1 next year, India will be able to export all its products to Pakistan without restrictions.

The cabinet also decided to do away with the 'negative list of 1,209 items by the end of this year.

The ministries of textile and industries wanted the restrictions to continue for five years.

Information Minister Dr Firdous Ashiq Awan said the cabinet had unanimously approved switching over from a positive to negative list trade regime with India.

"The products from negative list will be completely phased out by December 31."

She said the move would pave way for complete liberalisation of trade by the end of the year to culminate in an MFN (most favoured nation) status to India.

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Pakistan lifts trade restrictions with India