NEW DELHI: First it was the resolution of the Kashmir issue, which held up trade normalisation between India and Pakistan. The current pre-occupation is non-tariff barriers. So, at the end of the first meeting of the joint study group, the Indian and Pakistan commerce secretaries set up two working groups on customs cooperation and trade facilitation and on non-tariff barriers.
Talking to journalists later, Pakistan commerce secretary Tasneem Noorani said Pakistan wanted India to remove non-tariff barriers such as insisting on lab tests for textiles, directing imports of specific goods through designated terminals etc.
However, he injected a note of optimism saying if political climate permitted, nothing was impossible.
Nevertheless, Pakistan will not extend the its recent liberalised visa regime for businessmen to Indians. The high commissioner, Aziz Ahmed Khan said Indian businessmen would continue on the multiple-entry, six-month visas that they are currently getting. This issue, he added could only be addressed bilaterally.
Indian officials denied that there were any Pakistan-specific non-tariff barriers. However, Noorani said that there appeared to be some "cultural" problems wherein "Pakistani goods get ''special'' treatment." He was confident Pakistani exports could make a mark in textiles, surgical equipment and sports goods.
India flagged the issue of opening up Pakistani visas for Indian businessmen. India has asked for the opening up of the Wagah-Attari border for land trade between the two countries, a proposal Pakistan is yet to respond to. Noorani said Pakistan had also not taken any decision on Indian investments in say, telecom projects in Pakistan. "This is in the realm of investment, not trade," he said.
India has asked for Pakistani clearance on promotion of investment in joint ventures in some specific sectors. Despite Pakistani official silence though, the first such joint venture has reportedly happened between two IT firms. According to reports from Pakistan, quoting Jehan Ara, president of Pakistan Software Houses Association, (PASHA), Arwen Tech of Pakistan recently signed up with Hewitt India to train call centre personnel. Karachi-based Emmaculate Solutions, signed up with IFlex Solutions of Bangalore, while Compare, Delhi, teamed up with Creative Chaos, Karachi.