India, Afghanistan likely to ink key motor vehicle pact by Mayend

India and Afghanistan are likely to sign a bilateral motor vehicle agreement in May to put pressure on Pakistan, which is blocking New Delhi's regional connectivity plans.

Government sources said that the pact is likely to be signed during the forthcoming visit of Afghan foreign minister Salahuddin Rabbani to New Delhi to review the bilateral cooperation within the third week of May.

The agreement will help Afghanistan goods vehicle to cross Attari, check-post and come to Delhi, which would boost both bilateral trade with Afghanistan, besides bolstering regional connectivity.

As far as the bilateral trade is concerned, connectivity has remained a huge stumbling block, resulting in the sluggish pace of bilateral trade. According to the latest available government figures, the bilateral trade was $684 million for 2014-15 ($422 million export and $ 262 million import by India).

“However, the trade relations can realise its true potential if the Wagah-Attari route is opened for bilateral trade. The Pakistan-Afghanistan trade and transit pact was of no help in this regard,” said an official.

He said since with this transit agreement, Afghanistan can better leverage Indian policy of giving greater market access to the least developed countries from the SAARC region. So for the pact to be successful, Pakistan will have to come on board.

In the absence of a bilateral motor vehicle agreement with Pakistan, Indian vehicles cannot enter Pakistan.

Afghanistan has already signed the transit and trade agreement with Pakistan in 2010 that allows both countries to enter each other’s territory. But in absence of a pact with India, Afghanistan vehicles could come up to Wagah, the last check-post on Pakistan side, unload their goods and return.