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Pak to accord MFN status to India 'in due course'

In what is being considered a success for Indian diplomacy, Pakistan today promised to accord the Most Favoured Nation status to India in ''due course'' and also expressed its desire to sell power to New Delhi, as the talks between the two countries on economic and commercial cooperation ended on an optimistic note.

The two countries decided to discuss the existing difficulties in the railway sector at the technical level so that the movement of freight by rail was speeded up.

This is the only issue out of the eight identified by the two countries for discussions on which progress has so far been reported. Their talks in Islamabad on Jammu and Kashmir and peace and security last month and on the Tulbul navigation project, Siachen and Sir Creek in New Delhi over the past few days had not made much headway.

Briefing reporters at the end of today's talks, Commerce Secretary P P Prabhu, who led the Indian delegation, said New Delhi had also proposed to Pakistan to consider an agreement on avoidance of double taxation.

The Pakistani side, however, did not appear much enthusiastic after today's talks, though it confirmed that India would be accorded MFN status in due course.

While seeking to link the economic and commercial cooperation issue with Jammu and Kashmir, Pakistan foreign ministry spokesman Tariq Altaf said, ''It is very difficult to try and conduct unfettered or unreserved trade with India until an environment of peace and security is created in the region''.

Pakistan has agreed to extend invitations to Indian technical teams on power and railways so that many issues could be discussed and resolved.

Prabhu said one of the main constraints for Indian railway personnel was getting visa to enter Pakistan. While the Indian government gives visas to the Pakistani railway staff for travel within 15 days, Islamabad takes ''a lot more time.'' It was agreed by the visiting side at today's meeting that visas to Indian railway staff will be given'' within six weeks.''

He clarified that the government was not importing sugar from Pakistan. The item is under OGL and traders are free to import sugar. In this context, the commerce secretary pointed out that India was exporting sugar till two years ago but it has changed now. During 1996-97, out of Rs 5.2 billion worth exports by Pakistan to India, Rs 3.08 billion accounts for sugar alone. Similarly, during April-August this year, sugar imports from Pakistan accounted for Rs 3.11 billion out of a total trade of Rs 3.65 billion. Last year, during the same period, this item accounted for only Rs 300 million.

India's trade balance with Pakistan, which was in favour of the former at Rs 2.07 billion during April-July 1997, has reversed to minus Rs 1.24 billion during the same period this year.

In the afternoon, Pakistani commerce secretary Mohamad Sulaiman called on Commerce Minister R K Hegde.

UNI

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