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Pakistan phases out most Indian import restrictions | Pakistan phases out most Indian import restrictions |
(40 minutes later) | |
Pakistan will phase out restrictions on most imports from India by December 2012, the government has announced. | Pakistan will phase out restrictions on most imports from India by December 2012, the government has announced. |
The move is part of a pledge made last year to liberalise trade with India. | The move is part of a pledge made last year to liberalise trade with India. |
Analysts say the decision was expected and reflects weakening opposition to trade ties with India by the military and the right-wing religious lobby. | Analysts say the decision was expected and reflects weakening opposition to trade ties with India by the military and the right-wing religious lobby. |
Formal trade between the countries is worth $2.7bn a year, while informal trade, by way of smuggling, is believed to be three times that, experts say. | |
The BBC's M Ilyas Khan in Islamabad says the decision marks a major shift in relations between the nuclear-armed neighbours. It means that anything from India can now be imported into Pakistan, except for 1,200 items which have been put on a "negative list". | |
Earlier, Pakistani traders were allowed to import only about 2,000 items from India. | |
'Taken into confidence' | 'Taken into confidence' |
Wednesday's move follows an earlier Indian offer not to oppose Pakistan's preferential trade treatment by major importers such as the European Union. | Wednesday's move follows an earlier Indian offer not to oppose Pakistan's preferential trade treatment by major importers such as the European Union. |
The EU is the largest exporter of Pakistani goods and a major source of revenue for a faltering Pakistani economy. | The EU is the largest exporter of Pakistani goods and a major source of revenue for a faltering Pakistani economy. |
The two countries have had tense relations since their independence in 1947 and have fought three wars, two of them over the disputed region of Kashmir. | The two countries have had tense relations since their independence in 1947 and have fought three wars, two of them over the disputed region of Kashmir. |
Earlier this year, Pakistan indicated that it would offer India most favoured nation (MFN) trading status, which India has already extended to Pakistan. | |
It also indicated it would switch from a "positive" list of tradeable goods - items that are allowed to be imported - to a "negative" list by the end of February. | |
Pakistan Information Minister Firdous Awan said that all "stakeholders", including the military, "were taken into confidence before [Wednesday's] decision". | Pakistan Information Minister Firdous Awan said that all "stakeholders", including the military, "were taken into confidence before [Wednesday's] decision". |
Indian Trade Minister Anand Sharma said earlier this month that the two countries intended to increase formal trade to $6bn (£3.7bn) over the next three years. | Indian Trade Minister Anand Sharma said earlier this month that the two countries intended to increase formal trade to $6bn (£3.7bn) over the next three years. |
Last year, a Pakistani commerce minister led a business delegation to India for the first time in 35 years. | Last year, a Pakistani commerce minister led a business delegation to India for the first time in 35 years. |
Major exports from India to Pakistan include sugar, cotton, man-made filaments and chemicals, while its top imports from Pakistan include fruit, mineral fuels and organic chemicals. | Major exports from India to Pakistan include sugar, cotton, man-made filaments and chemicals, while its top imports from Pakistan include fruit, mineral fuels and organic chemicals. |
India and Pakistan resumed formal peace talks last year after they were broken off in the wake of the militant attacks in Mumbai in 2008 which were blamed on Pakistan-based militants. |
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