ECC allows more imports from India

ISLAMABAD: Economic Coordination Committee (ECC) on the recommendation of the ministry of commerce has removed restrictions on the import of 12 goods from India as part of measures to normalise trade between the nuclear-armed rivals, officials said on Saturday.

Pakistan's Commerce Ministry recently requested the Economic Coordination Committee (ECC), the top decision-making body on economic affairs, to increase the number of items that can be imported from India.

"The ECC met on Friday and approved the addition of 12 goods in the positive list of items that can be imported from India," a ministry official said.

Another official said the goods included machinery and raw materials for the leather and textile industries.

Pakistan has long been reluctant to open up trade with its neighbour because of long-running political disputes, particularly over the Kashmir region. But both countries have been trying to boost their trade following a recent thaw in ties.

Pakistan last week said it would grant India most-favoured nation (MFN) trade status that would help normalise trade by ending huge restriction. India gave MFN status to Pakistan in 1996.

The decision came as senior commerce officials of the two countries prepare to meet early next week in New Delhi to explore ways to boost bilateral trade.

Despite having a combined population of more than a billion, Pakistan and India's official bilateral trade stood at $1.4 billion in 2009/10 while an estimated $3 billion unofficial trade is routed through third countries in the Gulf.