India Inc upset over Pak dilly-dallying on trade pact

India Inc leaders,accompanying Commerce and Industry Minister Anand Sharma, today felt let down by Pakistan putting on hold a decision to normalise trade with India through a wide market access to Indian goods.

While they arrived in Lahore yesterday with high hopes, they found political will,required for pursuing unrestricted trade, missing. "Yes, I am disappointed. There are some political reservations, that need to be resolved. Political will is very important to boost bilateral economic relations," President of the Confederation of Indian Industry (CII) B Muthuraman said.

Sharma, who led the high-level business delegation on his three-day visit, declined to comment on today's development, stating,"let me look at it in Islamabad tomorrow".

FICCI President R V Kanoria too expressed his disappointment. "It is sad because businessmen from both the countries are very enthusiastic about the economic relations. The Cabinet is not reflecting the true sentiments of businessmen of both the countries," he said.

Ironically, the announcement of the postponement of the decision to prepare the negative list of trade with India has been made when the Indian Commerce Minister is here with a large business contingent.

Delay in finalisation of the negative trade list would also result in grant of the most favoured nation (MFN) status by Islamabad to New Delhi.

As per a mutual understanding in November last year, Pakistan was to allow in February 2012, import of all Indian goods, excepting a few items in the 'Negative List' giving boost to a paltry bilateral trade of USD 2.7 billion.

At present, Pakistan follows a 'positive list' regime and permits import of only about 1900 items from India, which gives almost full access to Pakistani goods.