India, Pakistan to ship goods directly

Indian ships will now be allowed to come into Pakistan. This will allow direct movement of goods from Pakistan to India. The two countries have signed a new shipping protocol bringing an end to the 31-year-old protocol which allowed goods to be ferried by India only through third-country ships.

The two countries are also discussing a comprehensive visa agreement, which will also take into account business visas. Both have decided to open two bank branches in each country and facilitate cement exports from Pakistan and tea imports from India.

The decisions have been taken as part of the composite dialogue held between the two countries. Addressing a business session organised by Ficci, Pakistan commerce secretary Asif Shah said that the new shipping protocol was already in place and there were no legal issues restricting Indian ships from going into Pakistan. “I don’t know if there are any technical issues left to be sorted out. But legally, Indian ships are now allowed to enter ports in Pakistan,” he said.

The commerce secretary revealed that the two countries were in the process of discussing a visa regime and a comprehensive visa agreement was on the anvil, which would include business visas. “It takes two to tango. If India agrees to the proposals made by Pakistan, there would be a sea-change in the visa regime,” he said.

On export of cement to India, Mr Shah said that discussions on the required certification process had proved to be fruitful and the first tranche of cement was likely to be exported by August-end. “There are three Pakistani companies which have already cleared the required procedures for exporting cement to India and three more are in the pipe-line,” he said.

Former Ficci president Onkar S Kanwar pointed out that instead of having a positive list of items from India, Pakistan should have a negative list for trade with India comprising items which are in nascent stages of production and need production.