Pakistan approves switch-over to negative list for trade with India

The Pakistan government on Wednesday approved the switch-over to a negative list regime for trade with India, paving the way for granting Most Favoured Nation status by year-end.

But Islamabad also said there would be no compromise on any "core issue" like the Kashmir dispute.
A meeting of the cabinet chaired by Prime Minister Yousuf Raza Gilani approved introduction of a negative list of 1,209 items that cannot be exported from India.This would mean India can export 6,800 items against 1,950 at present.
It also "unanimously approved the phasing out of the negative list" by December, said a statement issued by the premiers office.
"After that (phasing out of the negative list), the process of trade normalisation between the two countries will be completed," the statement said.
Information Minister Firdous Ashiq Awan told a news briefing that all requirements for giving India MFN-status would be met once decisions made by the cabinet are implemented.
"I can assure you that the move to progress towards MFN has been given final shape, Awan said in response to questions.
She referred to concerns about the "core issue" of Kashmir being affected by trade with India and said: "This perception should be dispelled that the Kashmir cause will in any way be compromised".
At the same time, Awan pointed out that the Prime Minister himself had briefed the cabinet and that trade between either sides of Kashmir was worth about 14 to 15 billion rupees.