Pakistan will purchase sugar and cotton from India, newly appointed Finance Minister Hammad Azhar introduced on Wednesday, lifting a ban on their import from the neighbouring nation imposed within the wake of heightened stress over Kashmir in 2019.
IMAGE: Kindly notice that this picture has been posted for representational functions solely. Photograph: Rupak De Chowdhuri/Reuters.
The choice was taken on the assembly of the Economic Coordination Committee (ECC), which was chaired by Azhar, who was appointed as finance minister by Prime Minister Imran Khan on Monday.
Azhar mentioned that the assembly mentioned 21 gadgets on the agenda, together with import of cotton and sugar from India, which it allowed after detailed discussions.
The resumption of import of these items will lead to partial revival of bilateral commerce relations, which had been suspended after the August 5, 2019 choice of India to revoke the particular standing of Jammu and Kashmir.
The personal sector was allowed to import 5 lakh tonnes of white sugar from India, he mentioned.
He additionally mentioned that the federal government had allowed sugar to be imported from different international locations, nonetheless, the worth of the commodity in different international locations was additionally excessive.
“However, in our neighbouring nation India, the worth of sugar is sort of low cost,” he mentioned.
“Hence, we’ve got determined to resume sugar commerce with India.”
He mentioned the federal government estimated a distinction of 15-20 per cent in sugar costs in India as in contrast to Pakistan.
Talking concerning the motive for permitting the import of cotton from India, Azhar mentioned that there was a excessive demand for it as a result of Pakistan’s textile exports had elevated however final 12 months’s cotton crop was not good.
Azhar additionally mentioned that Pakistan will import cotton from India beginning June this 12 months.
“The foundation of our choices would be the curiosity of the nation and its folks,” he maintained.
India is the world’s greatest producer of cotton and the second greatest sugar producer.
Adviser to the Prime Minister of Pakistan for Commerce and Investment, Dawood welcomed the choices taken by the ECC.
“All steps be taken by way of cross-border imports of cotton yarn together with by land.
“A abstract will likely be introduced on the subsequent ECC to guarantee availability of cotton and yarn within the coming months,” Dawood tweeted.
Earlier, in May 2020, Pakistan lifted the ban on import of medicines and uncooked materials of important medication from India amid the Covid-19 pandemic.
The ministry of textile had sought permission from the ECC to elevate the ban on import of cotton and cotton yarn from India in a bid to bridge the uncooked materials shortfall for the value-added textile sector.
The ministry of commerce individually requested for permission to enable import of white sugar from India by way of the Trading Corporation of Pakistan and industrial importers.
Prime Minister Khan, who can also be minister-in-charge of Commerce and Textile, has already authorised the suggestions to be positioned earlier than the ECC for approval. It implies that the prime minister is already in assist of lifting the ban on these merchandise imports from India, Dawn newspaper reported.
The choice to elevate the import ban on sugar and cotton was taken days after Prime Minister Khan, responding to his Indian counterpart Narendra Modi’s letter wishing him on Pakistan’s National Day, mentioned the folks of Pakistan additionally want peaceable cooperative relations with all neighbours, together with India.
In his letter to Khan, Prime Minister Modi had mentioned that India needs cordial relations with Pakistan however an environment of belief, devoid of terror and hostility, is “crucial” for it.
Tension has come down between the 2 nations after the restoration of ceasefire on the Line of Control final month.
On March 18, Pakistan’s highly effective Army chief Gen Qamar Javed Bajwa mentioned it was time for India and Pakistan to “bury the previous and transfer ahead”.
It is claimed that the 2 sides are working behind the scenes to restore their full diplomatic ties which had been downgraded after August, 2019 motion in Kashmir.
Ties between India and Pakistan nose-dived after a terror assault on the Pathankot Air Force base in 2016 by terror teams primarily based in Pakistan. Subsequent assaults, together with one on an Indian Army camp in Uri, additional deteriorated the connection.
The ties strained additional after India’s battle planes pounded a Jaish-e-Mohammed terrorist coaching camp deep inside Pakistan on February 26, 2019 in response to the Pulwama terror assault in 2019 wherein 40 CRPF jawans had been killed.
India’s transfer to revoke the particular standing of Jammu and Kashmir in August, 2019 angered Pakistan, which downgraded diplomatic ties with India and expelled the Indian High Commissioner in Islamabad.
Pakistan additionally snapped all air and land hyperlinks with India and suspended commerce and railway companies.