Punjab

India-Pakistan to start partial trade from June 2021, Pak to import sugar, Cotton

March 31, 2021 10:29 PM
Pak truck entering India at Attari International Check Post (File pic)

 Islamabad: Pakistan’s The Economic Coordination Committee (ECC) on Wednesday allowed the private sector to import 0.5 million tonnes of white sugar from India, Finance Minister Hammad Azhar said.

The finance minister added that the country will also import cotton from India starting from end-June this year.

There were 21 items on the agenda of the ECC meeting to be chaired by the newly appointed finance minister.

The resumption of import of these goods will lead to partial revival of trade relations. On Aug 9, 2019 Pakistan downgraded trade relations with India in reaction to the latter's decision to revoke Article 370 of its Constitution that granted occupied Kashmir a special status.cc

Commerce and Textile divisions had submitted five crucial summaries for approval besides others, sources had earlier told Dawn.

At the agenda no. 16, the Textile Division summary sought permission from the ECC to lift ban on import of cotton and cotton yarn from India in a bid to bridge raw material shortfall for the value-added textile sector.

In addition to this, another summary of the commerce ministry at agenda No. 20 also sought permission to allow import of white sugar from India through the Trading Corporation of Pakistan and commercial importers.

The resumption of import of these goods will lead to partial revival of trade relations. On Aug 9, 2019 Pakistan downgraded trade relations with India in reaction to the latter's decision to revoke Article 370 of its Constitution that granted occupied Kashmir a special status.

In May 2020, Pakistan lifted the ban on import of medicines and raw material from India to ensure there is no shortage of essential drugs amid the Covid-19 pandemic. This was the first step of reversing of complete suspension of trade with India.

Previously, cotton, yarn and sugar imports were allowed from all countries except India.

Prime Minister Imran, who is also Minister-in-Charge of Commerce and Textile, has already approved the summaries to be placed before the ECC for approval. It means that the prime minister is already in support of lifting the ban on these products imports from India.

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