Welcome to High Commission of India, Islamabad, Pakistan

Trade Relations

Trade and Economic Relations between India and Pakistan

1. Trade and commerce has always played an important role in bilateral relationship and it has been a two way bridge which strengthens friendly relations. Therefore, normalising trading relations with Pakistan is an important component of India’s policy of overall normalisation and improvement of bilateral relations with the neighbour.Bilateral trade existed since independence, however, significant progress was made in the late nineties. India initiated the move for further boost in bilateral trade when it extended the MFN status to Pakistan in 1996 and the trade volume grew remarkably in the early 2000s. Further transition towards normalisation of trade relations between India and Pakistan was initiated by moving from a positive list maintained by Pakistan to a negative list regime in March, 2012 following the visit of the then Commerce minister. This was followed by opening up of trade through the land routes in April, 12, thereby opening up better trade opportunities.Following table illustrates the bilateral trade between the two countries at a glance, since the FY 2003-04 till the current FY.

Bilateral trade (in millions US$)

Financial Year	Exports from India	Imports to India	Total Trade	%age increase	Balance of Trade
2003-04	286.94	57.74	344.68	79.87	+229.2
2004-05	521.05	94.97	616.02	78.72	+426.08
2005-06	689.23	179.56	868.79	41.03	+454.23
2006-07	1,350.09	323.62	1,6373.71	92.64	+1,026.47
2007-08	1,950.53	287.97	2,238.50	85.23	+1,662.56
2008-09	1,440	370.17	1,810.17	7.52	+1,179.83
2009-10	1,573.32	275.94	1,849.26	2.1	+1,297.38
2010-11	2,039.53	332.52	2,372.05	28.27	+1,707.01
2011-12	1,541.28	397.66	1,939.21	-18.25	+1,140.37
2012-13	2,064.79	541.87	2,606.66	34.42	+1,523
2013-14	2,274.26	426.88	2,701.15	3.62	+1,847.38
2014-15	1,857.18	497.31	2,354.49	-12.83	+1,359.87
2015-16	2171.14	441.03	2612.16	+10.94	+1730.11
2016-17	1821.87	454.49	2276.36	-12.86	+1367.38
2017-18	1924.28	488.56	2412.83	+6.00	+1435.72
2018-19	2066.56	494.87	2561.44	+6.00	+1571.69

Source: Ministry of Commerce and Industry, GOI

2. Main items of export from India to Pakistan are: cotton, organic chemicals, food products including prepared animal fodder, edible vegetables, plastic articles, man-made filament, coffee, tea, spices, dyes, oil seeds, dairy products, pharmaceuticals etc. Main items of import by India from Pakistan are: copper and copper articles, edible fruits and nuts, cotton, salt, sulphur and earths and stones, organic chemicals, mineral fuels, plastic products, wool, glassware, raw hides & skin etc.

High Level Interactions

3. The visit of the then Senior Federal Minister of Commerce of Pakistan Makhdoom Muhammad AmeenFahim to India from September 29- October 3, 2011 was the first such visit after a gap of 35 years. The visit of Commerce, Industry and Textiles MinisterShriAnand Sharma to Pakistan from February 13-17, 2012 was the first ever such bilateral visit from the Indian side. He was accompanied by a 100-strong delegation of senior captains and representatives of India’s trade and industry. This was followed by a visit of the then Minister of Commerce MakhdoomFahim of Pakistan to India in connection with the ‘Lifestyle Pakistan’ Exhibition in New Delhi from April 12-14, 2012. Pakistan’s Federal Minister of Commerce met Commerce Minister in New Delhi on January 18, 2014 on the margins of the Fifth SAARC Business Conclave. The Ministerial meeting was preceded by meetings of Commerce Secretaries of the two countries on January 15 and 17, 2014.

Trade Normalisation

4. During the visit of the Commerce Minister of Pakistan to India in Sep-Oct 2011, the two Ministers mandated the Commerce Secretaries to pursue with vigour the task of fully normalizing bilateral trade relations, dismantle all non-tariff barriers, full implementation of SAFTA obligations and prepare the roadmap for greater preferential trading arrangements between India and Pakistan. In early November 2011, the Pakistan cabinet took a decision to fully normalize trade relations with India, of which granting MFN status to India would be a part. The Commerce Ministers of the two countries agreed during their meeting in Islamabad in February 2012 that both sides would scrupulously adhere to the roadmap drawn up by the Commerce Secretaries for full normalization of trade relations by, inter alia, phasing out the Negative List for imports from India before the end of 2012, and advancing preferential trading arrangements through SAFTA.

5. In March 2012, a ‘Negative List’ (of 1209 items which cannot be imported from India) was notified. It replaced a ‘positive list’ of about 1950 items which were till then permitted for import from India. In August 2012, India announced reduction of 30% in its SAFTA Sensitive List for non-Least Developed Countries, bringing down tariff on 264 items to 5% within a period of three years. This measure benefited Pakistan’s exports to India in sectors of key interest to Pakistan. In their meeting in Islamabad on September 20-21, 2012, Commerce Secretaries developed a long-term plan whereby Pakistan would notify removal of all restrictions on trade by Attari-Wagah land route by October 2012 (which currently permits only 138 items to be thus imported), and the Indian side would bring down its SAFTA Sensitive list by 30%. Thereafter, once Pakistan phased out the Negative List (supposed to have been done by December 2012), India was to bring its SAFTA Sensitive List down to 100 tariff lines at six digit level, and Pakistan would simultaneously notify its dates of transition to a similar regime within the next five years.

6. In their meeting in New Delhi on January 18, 2014, Commerce Ministers of India and Pakistan reaffirmed the commitment to expedite establishment of normal trading relations and in this context to provide Non-Discriminatory Market Access (NDMA), on a reciprocal basis. They decided to intensify and accelerate the process of trade normalisation, liberalization and facilitation and to implement the agreed measures before the end of February 2014. Implementation of these steps, inter alia, removal of ‘Negative List’ and removal of restrictions on the number of importable items via Wagah land route by Government of Pakistan is awaited.

Trade Agreements

7. With a view to build confidence of the business community on both sides, representatives of various trade regulatory bodies of India held meetings over 2011-12 with representatives of leading chambers of commerce and industry of Pakistan to discuss matters pertaining to trade regulations, standards, labelling and marking requirements. Three agreements, viz., Customs Cooperation Agreement, Mutual Recognition Agreement and Redressal of Trade Grievances Agreement, were signed during the Commerce Secretaries’ talks on September 21, 2012 in Islamabad.

Trade Infrastructure

8. The then Home Minister of India, in the presence of, among others, the Commerce Ministers of India and Pakistan, and the Chief Ministers of the states of Punjab of the two countries inaugurated the Integrated Check Post (ICP) at Attari on April 13, 2012. The Attari ICP represents vastly improved infrastructure to facilitate trade and travel. Spread over 118 acres, it contains a passenger terminal measuring 9,600 sqmts, a dedicated cargo terminal measuring 4,700 sqmts, and separate import and export warehouses measuring over 10,000 sqmts, apart from over 50,000 sqmts of parking space for trucks, and equally large area for future expansion. The two sides have discussed favourably other initiatives such as 24x7 operation at Attari-Wagah trade route, movement of containers between Amritsar and Lahore and meeting point for business persons at Attari/ Wagah.

Other Initiatives

9. Industry representatives and officials from the two countries held in 2012 discussions on export of upto 500 MW of electricity to Pakistan from India, trade in petroleum products and export of upto 5 million cubic meters of gas per day from India to Pakistan. Following the assumption of office of the new government in Pakistan after the elections in May 2013, a composite Indian delegation comprising officials and public sector representatives from electricity and gas utilities visited Lahore and Islamabad on June 9-12 to hold further discussions at technical level and made presentations to the Chief Minister of Punjab and Member of Prime Minister’s Energy Committee Shehbaz Sharif, Minister for Water and Power KhawajaAsif and Minister for Petroleum and Natural Resources ShahidKhaqanAbbasi. After a hiatus of a few months since expected visit of a delegation from Pakistan to India for follow up in July/ August 2013, further talks were held in Delhi on March 5, 2014 on trade in power and on cooperation in gas and petroleum sector on April 1, 2014.

10. Pakistan welcomed India’s decision to allow investment from Pakistan (notified by the Government of India on August 1, 2012). The decision to allow investment from Pakistan in shares and convertible debentures was notified by RBI on August 22, 2012. In September 2012, RBI removed restriction on investment in Pakistan from India.
11. Pakistan expressed appreciation for India’s support for getting approved the EU trade concession package for Pakistan by the General Council of WTO. In 2013, it requested India to support its efforts for obtaining EU’s GSP Plus facilities which was later granted to it in December 2013.

Business-to-Business Interactions

12. Among business-to-business exchanges after April 2012 are participation of a CII-organised high level business delegation in the 2nd Indo-Pak AmankiAsha Economic Conference ‘Dividends: Profits on Peace’ in Lahore on 7-8 May 2012, Bombay Chamber of Commerce and Industry in ‘My Karachi’ exhibition in Karachi from 13-15 July 2012, ‘India Expo’ in Karachi in 2013, the second edition of ‘India Show’ in Lahore (February 14-16, 2014) – which was inaugurated by Federal Minister for Commerce of Pakistan KhurramDastgir Khan, ‘Made in Pakistan’ Exhibition mounted by the Federation of Pakistan Chambers of Commerce and Industry in Mumbai from August 31-September 4, 2012, and again from April 3-7, 2014, participation of Pakistan in Indian International Trade Fair in November 2012 and 2013, and in a number of other trade exhibitions and events, including those arranged by the PHD Chamber of Commerce and Industry in Chandigarh, Ludhiana, Delhi, etc. The second edition of ‘Lifestyle Pakistan’ was held in September 2014 in Delhi. An interactive session with the Pakistan business community on ‘Business Environment in India’ was organised on 27.07.15 at Lahore by CII and FPCCI. India Pakistan Joint Business Forum (IPJBF) held a two day interaction in New Delhi on May 2-3, 2016 attended by leading business houses from both the countries as well as officials from the governments.

Make in India

13. To give new momentum to India’s international trade and to make India an investor friendly destination various new initiatives are being undertaken and Make in India is one of such programmes.It is a program which includes major new initiatives designed to facilitate investment, promote innovation, protect intellectual property and to develop a modern manufacturing infrastructure in India. All the enthusiastic and innovative entrepreneurs, investors and technocrats from around the world are invited to India to be part of this initiative and in the process to expand their own business enterprises.To familiarise the Pakistan business community with the concept an event ‘Business opportunities in India’ was held in Islamabad on 15.02.16 which also coincided with the inauguration of the ‘Make in India week’ in Mumbai by the Hon’ble PM on 13.02.16.

A list showing details of items being traded through the land borders is appended.

For issues on Customs and the updated contact details of CustomsAttariplease visit the site below

http://amritsarcustoms.gov.in

For details on trade statistics and issues related to trade and commerce please visit the site below

http://commerce.nic.in/

Items importable from India through land route from Wagah.

S.NO	PCT CODES	DESCRIPTION
(1)	(2)	(3)
1	0102.9010	Buffaloes
2	0102.9020	Bulls
3	0102.9030	Cows
4	0102.9040	Oxen
5	0102.9090	Other
6	0104.1000	Sheep
7	0104.2000	Goats
8	0106.1900	Other (Camels Only)
9	0201.1000	Carcasses and half-carcasses
10	0201.2000	Other cuts with bone in
11	0201.3000	Boneless
12	0202.1000	Carcasses and half-carcasses
13	0202.2000	Other cuts with bone in
14	0202.3000	Boneless
15	0204.1000	Carcasses and half carcasses of lamb, fresh or chilled
16	0204.2100	Carcasses and half-carcasses
17	0204.2200	Other cuts with bone in
18	0204.2300	Boneless
19	0204.3000	Carcasses and half-carcasses of lamb, frozen
20	0204.4100	Carcasses and half-carcasses
21	0204.4200	Other cuts with bone in
22	0204.4300	Boneless
23	0204.5000	Meat of goats
24	0701.9000	Other (Potatoes fresh or chilled)
25	0702.0000	Tomatoes, fresh or chilled.
26	0703.1000	Onions and shallots
27	0703.2000	Garlic
28	0704.1000	Cauliflowers only
29	0704.9000	Other (Cabbage only)
30	0706.1000	Carrot only
31	0707.0000	Cucumber only.
32	0708.1000	Peas (Pisumsativum)
33	0708.2000	Beans (Vigna spp., Phaseolus spp.)
34	0709.3000	Aubergines (egg-plants)
35	0709.6000	Green pepper/ shimlamirch and green chillies
36	0709.7000	Spinach, New Zealand spinach and orache spinach (garden spinach)
37	0709.9100 0709.9200 0709.9300 0709.9900	Other (Lady finger, Okra, ground/marrow, bitter gourd, radish arum/ arvi green, coriander, tinda).
38	0710.1000	Potatoes
39	0710.2100	Peas (Pisumsativum)
40	0710.2200	Beans (Vigna spp., Phaseolus spp.)
41	0710.2900	Other
42	0710.3000	Spinach, New Zealand spinach and orache spinach (garden spinach)
43	0710.4000	Sweet corn
44	0710.8000	Other vegetables
45	0710.9000	Mixtures of vegetables
46	0804.3000	Pineapples
47	0904.1110	Black pepper
48	0910.1100 0910.1200	Ginger fresh only
49	1005.9000	Other (corn maize)
50	1701.1300 1701.1400	Raw cane and beet sugar (not containing added flavoring or coloring matter) and white crystalline cane and beet sugar.
51	1701.1200	-do-
52	1701.9910	-do-
53	1701.9920	-do-
54	2304.0000	Oil cake and other solid residues, whether or not ground or in the form of pellets, resulting from the extraction of soya bean oil.
55	2523.1000 2523.2100 2523.2900 2523.3000 2530.9000	Cement and clinker
56	2917.3610	Pure terephthalic acid (PTA)
57	3901.1000	Polyethylene having a specific gravity of less than 0.94
58	3901.2000	Polyethylene having a specific gravity of 0.94 or more
59	3902.1000	Polypropylene
60	4801.0000	Newsprint, in rolls or sheets
61	5201.0090	Other (Long staple cotton and short staple cotton of 0.5 million bales)
62	5205.1100	Single yarn, of uncombed fibres measuring 714.29 decitex or more (not exceeding 14 metric number)
63	5205.1200	Single yarn, of uncombed fibres measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number)
64	5205.1300	Single yarn, of uncombed fibres measuring less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number)
65	5205.1400	Single yarn, of uncombed fibres measuring less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number)
66	5205.1500	Single yarn, of uncombed fibres measuring less than 125 decitex (exceeding 80 metric number)
67	5205.2100	Single yarn, of combed fibres measuring 714.29 decitex or more (not exceeding 14 metric number)
68	5205.2200	Single yarn, of combed fibres measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number)
69	5205.2300	Single yarn, of combed fibres measuring less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number)
70	5205.2400	Single yarn, of combed fibres measuring less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number)
71	5205.2600	Single yarn, of combed fibres measuring less than 125 decitex but not less than 106.38 decitex (exceeding 80 metric number but not exceeding 94 metric number)
72	5205.2700	Single yarn, of combed106.38 decitex but not fibres measuring less than less than 83.33 decitex (exceeding 94 metric numeric number)
73	5205.2800	Single yarn, of combed fibres measuring less than 83.33 decitex (exceeding 120 metric number)
74	5205.3100	Multiple (folded) or cabled yarn, of uncombed fibres measuring per single yarn 714.29 decitex or more (not exceeding 14 metric number per single yarn)
75	5205.3200	Multiple (folded) or cabled yarn, of uncombed fibres measuring per single yarn less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number per single yarn)
76	5205.3300	Multiple (folded) or cabled yarn, of uncombed fibres measuring per single yarn less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number per single yarn)
77	5205.3400	Measuring per single yarn less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number per single yarn)
78	5205.3500	Measuring per single yarn less than 125 decitex (exceeding 80 metric number per single yarn)
79	5205.4100	Multiple (folded) or cabled yarn, of combed fibres: measuring per single yarn 714.29 decitex or more (not exceeding 14 metric number per single yarn)
80	5205.4200	Multiple (folded) or cabled yarn, of combed fibres measuring per single yarn less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number per single yarn)
81	5205.4300	Multiple (folded) or cabled yarn, of combed fibres measuring per single yarn less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number per single yarn)
82	5205.4400	Multiple (folded) or cabled yarn, of combed fibres measuring per single yarn less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number per single yarn)
83	5205.4600	Measuring per single yarn less than 125 decitex but not less than 106.38 decitex (exceeding 80 metric number but not exceeding 94 metric number per single yarn)
84	5205.4700	Multiple (folded) or cabled yarn, of combed fibres measuring per single yarn less than 106.38 decitex but not less than 83.33 decitex (exceeding 94 metric number but not exceeding 120 metric number per single yarn)
85	5205.4800	Multiple (folded) or cabled yarn, of combed fibres measuring per single yarn less than 83.33 decitex (exceeding 120 metric number per single yarn)
86	5206.1100	Single yarn, of uncombed fibres measuring 714.29 decitex or more (not exceeding 14 metric number)
87	5206.1200	Single yarn, of uncombed fibres measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number)
88	5206.1300	Single yarn, of uncombed fibres measuring less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number)
89	5206.1400	Single yarn, of uncombed fibres measuring less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number)
90	5206.1500	Single yarn, of uncombed fibres measuring less than 125 decitex (exceeding 80 metric number)
91	5206.2100	Single yarn, of combed fibres measuring 714.29 decitex or more (not exceeding 14 metric number)
92	5206.2200	Single yarn, of combed fibres measuring less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number)
93	5206.2300	Single yarn, of combed fibres measuring less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number)
94	5206.2400	Single yarn, of combed fibres measuring less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number)
95	5206.2500	Single yarn, of combed fibres measuring less than 125 decitex (exceeding 80 metric number)
96	5206.3100	Multiple (folded) or cabled yarn, of uncombed fibres measuring per single yarn 714.29 decitex or more (not exceeding 14 metric number per single yarn)
97	5206.3200	Multiple (folded) or cabled yarn, of uncombed fibres measuring per single yarn less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number per single yarn)
98	5206.3300	Multiple (folded) or cabled yarn, of uncombed fibres measuring per single yarn less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number per single yarn)
99	5206.3400	Multiple (folded) or cabled yarn, of uncombed fibres measuring per single yarn less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number per single yarn)
100	5206.3500	Multiple (folded) or cabled yarn, of uncombed fibres measuring per single yarn less than 125 decitex (exceeding 80 metric number per single yarn)
101	5206.4100	Multiple (folded) or cabled yarn, of combed fibres measuring per single yarn 714.29 decitex or more (not exceeding 14 metric number per single yarn)
102	5206.4200	Multiple (folded) or cabled yarn, of combed fibres measuring per single yarn less than 714.29 decitex but not less than 232.56 decitex (exceeding 14 metric number but not exceeding 43 metric number per single yarn)
103	5206.4300	Multiple (folded) or cabled yarn, of combed fibres measuring per single yarn less than 232.56 decitex but not less than 192.31 decitex (exceeding 43 metric number but not exceeding 52 metric number per single yarn)
104	5206.4400	Multiple (folded) or cabled yarn, of combed fibres measuring per single yarn less than 192.31 decitex but not less than 125 decitex (exceeding 52 metric number but not exceeding 80 metric number per single yarn)
105	5206.4500	Multiple (folded) or cabled yarn, of combed fibres measuring per single yarn less than 125 decitex (exceeding 80 metric number per single yarn)
106	5207.1000	Containing 85 % or more by weight of cotton
107	5207.9000	Other
108	5303.1010	Raw Jute
109	7219.1100	Of a thickness exceeding 10 mm
110	7219.1200	Of a thickness of 4.75 mm or more but not exceeding 10 mm
111	7219.1300	Of a thickness of 3 mm or more but less than 4.75 mm
112	7219.1400	Of a thickness of less than 3 mm
113	7219.2100	Of a thickness exceeding 10 mm
114	7219.2200	Of a thickness of 4.75 mm or more but not exceeding 10 mm
115	7219.2310	Of a width up to 700 mm, thickness up to 4 mm of series 200, 301, 303, 304, 304L, 316, 316L, 410,420 & 430
116	7219.2390	Other
117	7219.2410	Of a width up to 700mm, of series 200, 301, 303, 304, 304L, 316, 316L, 410, 420 & 430
118	7219.2490	Other
119	7219.3100	Of a thickness of 4.75 mm or more
120	7219.3210	Of a width up to 700 mm, thickness up to 4mm of series 200, 301,303, 304, 304L, 316, 316L, 410, 420 & 430
121	7219.3290	Other
122	7219.3310	Of a width up to 700 mm, of series 200, 301, 303, 304, 304L, 316, 316L, 410, 420 & 430
123	7219.3390	Other
124	7219.3410	Of a width up to 700 mm, of series 200, 301, 303, 304, 304L, 316, 316L, 410, 420, & 430
125	7219.3490	Other
126	7219.3510	Of a width up to 700 mm, thickness up to 4mm of series 200, 301,303, 304, 304L, 316, 316L, 410, 420 & 430
127	7219.3590	Other
128	7219.9010	Sheets in circular shape of all sizes
129	7219.9090	Other
130	7220.1100	Of a thickness of 4.75 mm or more
131	7220.1210	Of a thickness up to 4mm of Series 200, 301, 303, 304, 304L, 316, 316L, 410, 420 & 430
132	7220.1290	Other
133	7220.2010	Of a thickness up to 4mm of Series 200, 301, 303, 304, 304L, 316, 316L, 410, 420 & 430
134	7220.2090	Other
135	7220.9010	Of a thickness up to 4mm of Series 200, 301, 303, 304, 304L, 316, 316L, 410, 420 & 430
136	7220.9090	Other
137	8433.5900 8419.3100	Other (Paddy harvesters and paddy dryers)”.
138	2719.1100	Pet Coke, not calcined