Good steps

The first-ever visit of an Indian commerce minister to Pakistan, walking across the Wagah border, which is the most imporantt trade and transit point  between the two countries, was important in itself for the symbolism that it invoked.

Anand Sharma’s three-day visit did not produce any spectacular result but it helped to take forward the expectations of better trade and business relations between the two countries. The three agreements signed during the visit would help to prepare the ground for improving the trade volumes by creating the necessary infrastructure facilities and setting up mechanisms for dealing with grievances and removing road blocks.

It is better to lay an effective basis for productive interaction and smooth functioning of a business relationship before the two countries fully open up the choked trade routes.
There will be disappointment in India that the final announcement on Pakistan granting the Most Favoured Nation (MFN) status to India did not come about during Sharma’s visit.

But the fact the decision was taken in principle last year and the Pakistan government has said that it would be implemented by the end of the year is itself a positive. The idea of switching over from a positive list of items, which  restricts trade, to a negative list which opens it up, is still alive and is expected to happen by the end of the year. This would mean the granting of the MFN status and India has promised to reciprocate with dismantling of all non-tariff barriers relating to trade. There are still reservations among  sections of Pakistan’s business community  over improved trade with India as they fear that Indian goods will flood Pakistan.

There is an extremist section also which does not want to improve relations with India, political or business-related.  But  the reported support of the army to the idea of granting of MFN status should give it a big boost. The government naturally wants more time to launch  the  full process. The Pakistan commerce secretary’s statement that complete normalisation of trade is well on course but calls for patience is therefore realistic.

A number of bilateral committees in various areas have been scheduled to meet in the next few weeks to take the process forward, address problems and find solutions. These are good steps and should eventually make the two neighbours natural trading partners, as Sharma hoped. The positive impact of better business ties on political relations is too obvious to be stated.