Question : Trade between India and Pakistan

(a) the details of bilateral trade between India and Pakistan during the last three years and the current year;
(b) whether the tension on the Line of Control is directly affecting the trade between the two countries;
(c) if so, the details thereof along with the corrective steps taken by the Government in this regard; and
(d) whether high-level meetings have been held by the two countries to improve the trade ties and if so, the details and the outcome thereof?

Answer given by the minister

THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (INDEPENDENT CHARGE)
(SMT. NIRMALA SITHARAMAN)

(a) The details of bilateral trade between India and Pakistan during the last 3 years and the current year, are given below:
(In US$ million)
Year Export Import Total Trade
2013-14 2274.30 426.88 2701.18
2014-15 1857.29 497.31 2354.60
2015-16(P)*
2098.43 441.03 2539.46
2016-17(P)*
(April-May) 278.75 60.68 339.43

* Provisional
Source: Export Import Data Bank of D/o Commerce and DGCIS, Kolkata

(b) & (c): The land based International trade between India and Pakistan takes place through Attari-Wagha border, which is not on the Line of Control between India and Pakistan.


(d) During the 7th round of talks on Commercial and Economic Cooperation between Commerce Secretaries of India and Pakistan held in Islamabad on September 20-21, 2012 it was agreed, inter-alia that Pakistan would immediately remove all trade restrictions through Wagha/Attari border, transition fully to MFN (non-discriminatory) status for India by December, 2012, etc. Pakistan, however, did not adhere to the timelines.

The Commerce Ministers of India and Pakistan met on 18th January 2014 on the sidelines of the 5th SAARC Business Leaders Conclave held at New Delhi. Both Ministers reaffirmed the commitment of their Governments to expeditiously establish normal trading relations and in this context to provide Non-Discriminatory Market Access (NDMA),on a reciprocal basis. Both sides decided to intensify and accelerate the process of trade normalization, liberalization and facilitation and to implement the agreed measures.

In the meeting between Prime Ministers of India and Pakistan on 27th May 2014, India stated that the two countries could move immediately towards full trade normalization on the basis of the September 2012 roadmap worked out between the Commerce Secretaries of both countries.

No bilateral trade meeting between India and Pakistan has taken place since then, and there is no progress on the agreed roadmap.

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