It was upon this progress that the Indian Commerce and Industry Minister extended an invitation to his Pakistani counterpart, which was readily accepted. The five-day visit, the official part of which ended on 30 September, with a dinner hosted by Delhi’s Chief Minister, will hopefully provide the platform from which Indo-Pak commercial relations could move to a completely new and a higher trajectory.
This hope is based on reading of the joint communiqué issued after bilateral talks by the two Ministers on 28 September.
The communiqué, one of the most clear and focused articulations of the intentions of the two governments, not only provides a realistic framework but also a strong political mandate for the officials to pursue liberalisation of economic ties between the two countries in a time-bound manner. Indeed it states that the two Ministers see the normalisation of economic and commercial ties as an uninterruptable and irreversible process.
This is unprecedented and holds out significant promise not merely for the two countries but also for the entire South Asian region and could have even wider implications. The current sequence of events, which includes a planned follow-up of official talks in November, should give reason for being more hopeful.
The way forward is now clearly laid down. On India’s side this will include a relaxation of the present visa regime, especially for business visitors, and the removal of as many non-tariff barriers on imports from Pakistan as possible.
There is also an ever-increasing demand for Indian visas by Pakistanis wanting to travel to India, not only for business but also for tourism and family reasons.
During my recent visit to Pakistan in July, I noticed a predominance of good sentiments towards Indiain business and civil society. India needs to encourage and strengthen these sentiments as much as possible. The current visa regime, practiced by both sides, which permits only city-specific visas, and requires compulsory reporting to the nearest police station, is a travesty not seen anywhere else (except perhaps Palestine).
This must be discarded as soon as possible. Security concerns, which are of course very relevant and important, can surely be taken care of through the use of better technology and greater focus on surveillance and intelligence.
On the Pakistani side, there is now a strong demand by the business community to move from the present regime of bilateral trade being conducted, shifting it to a negative list, which would be in conformity with South Asian Free Trade Area (SAFTA) provisions.
It is also hoped that Pakistan will grant India Most Favoured Nation (MFN) status as a part of the roadmap to normalise economic ties. It was heartening to see the confidence of Pakistani businessmen, who now do not suffer from any fears of being eliminated by their Indian counterparts, and who repeatedly said that they were eager to compete for the larger share of the Indian, as well as their own, domestic market.
The Indian Commerce and Industry Minister has also accepted an invitation to visit Pakistan in February 2012. Let us hope that this visit, unlike high-level visits planned earlier only to be aborted due to unfortunate events, will not only go ahead but also mark the culmination of successful negotiations on normalisation of economic and commercial ties. This will, no doubt, change the face of South Asia, bringing the region into a new period of stability, peace and prosperity.
Rajiv Kumar is Secretary-General of the Federation of Indian Chambers of Commerce and Industry. A version of this article originally appeared here in the Hindu Business Line.