Pak allows cotton, sugar import from India after 2 years
HE MOVE WILL ALLOW THE COUNTRY TO COPE WITH THE RISING PRICE OF SUGAR AND A SHORTAGE OF COTTON, PAK FINANCE MINISTER HAMMAD AZHAR SAID ON TUESDAY
NEW DELHI : The Pakistan government paved the way for resumption of limited trade relations with India by allowing imports of sugar and cotton from the latter on Wednesday, almost two years after commercial ties were snapped.
The green signal for the imports from the Economic Coordination Committee (ECC) of Pakistan’s Cabinet reflected a recent thaw in relations between New Delhi and Islamabad after the armies of the two sides recommitted themselves to a ceasefire along the Line of Control (LoC) in Jammu and Kashmir last month.
Pakistan’s finance minister Hammad Azhar, who was appointed to the position by Prime Minister Imran Khan only on Tuesday, told a news conference in Islamabad that the move will allow the country to cope with the rising price of sugar and a shortage of cotton.
The Cabinet committee approved imports of up to 500,000 tonnes of sugar by the private sector and allowed imports of cotton up to the end of June to meet the needs of small and medium enterprises.
“Following an increase in the price of sugar, we allowed imports from across the world but the prices around the world are also high, which means imports aren’t possible. In our neighbouring country India, the price of sugar is lower than the price in Pakistan,” Azhar said, speaking in Urdu.
“So we have decided to allow trading in sugar with India, [with imports of] up to 500,000 tonnes by the private sector,” he added.
The difference in the price of sugar in the two countries is estimated to be 15% to 20% and the imports will help cover a minor shortfall and reduce prices. “The benefits will go to the poor of Pakistan,” Azhar said.
Noting that there is great demand for cotton in Pakistan as textile exports had increased and last year’s crop wasn’t good, Azhar said: “We had allowed cotton imports from around the world but not from India, and this makes a difference to SMEs or the smaller industries. The bigger firms can import cotton from Egypt or other countries and even at expensive prices, but this is needed by SMEs”.
“Today, on a proposal from the commerce ministry, the ECC decided that we will open imports [of cotton] from India till the end of June.”
Azhar sidestepped a question from a reporter on the resumption of trade ties with India without addressing the Kashmir issue by saying: “If the burden on the ordinary man is reduced by trading with some country, there is no loss in it.”
On the Indian side, Pakistan’s decision will benefit growers and merchants in Punjab, which has for long had trade relations with the neighbouring country and was a key supplier of vegetables, fruits and other agricultural products. Trade has invariably been hit whenever tensions spiked between India and Pakistan, and this was also case when the 2019 Pulwama suicide attack triggered a military standoff.