Home / / India to allow FDI from Pakistan, open border post

India to allow FDI from Pakistan, open border post


Comments / 341 Views / Monday, 16 April 2012 00:06


Reuters: India has decided to allow foreign direct investment from Pakistan, Trade Minister Anand Sharma said on Friday, before the two countries were due to open a trading post on the Wagah border in the latest sign of thawing economic ties.

Liberalising heavily restricted trade and investment flows is now the driver of peace efforts between the neighbours, whose fragile ties were shattered when Pakistani militants attacked Mumbai in 2008.
“India has taken an in-principle decision, as a part of the process to deepen our economic engagement, to allow foreign direct investments from Pakistan in India,” said Sharma at a news conference with his Pakistani counterpart.
Despite thousands of years of shared history and culture and a combined population of 1.4 billion people, cross-border trade remains paltry – a legacy of three wars since their independence from Britain in 1947.
Under current rules, Pakistani citizens cannot directly invest in India. Investment flows are unlikely to surge, but the move will go some way to addressing concerns by Pakistani businessmen that India places too many restrictions on them.
More than 600 Pakistani businesses are in New Delhi this week at a trade fair to promote their products to the Indian market.
In the face of some domestic opposition, the government of Pakistan President Asif Ali Zardari last November vowed to grant India most favoured nation status, which ends restrictions that require most products to move via a third country.
The move was hailed by India and the two countries are now focused on resolving economic issues before moving on to more intractable problems such as the disputed region of Kashmir.
Sharma also said an agreement to relax restrictions on visas for Pakistani businessmen was almost ready.
Later on Friday, Sharma and the Pakistani trade minister, Makhdoom Amin Fahim, will open an expanded border trade terminal at Wagah, between Lahore and Amritsar.
With a capacity to handle about 600 trucks a day, the border crossing is expected to help bring trade to $8 billion annually from the current level of $2.6 billion, industry chamber ASSOCHAM said in a study published this week.


Share This Article


COMMENTS

Today's Columnists

“People will make the JVP the main opposition”: Mayadunne

28 July 2015

“People will not make the JVP the ruling party but they will most certainly make us the main opposition,” noted former Auditor General Sarath Chandrasiri Mayadunne who heads the Janatha Vimukthi Peramuna national list. Reiterating hi...


National Education Policy: Professionals should design it and take its ownership

27 July 2015

Education is too important to be left to politicians who are not experts on the subject   An important TV talk show on national education policy In a recent TV talk show on what should be the country’s na...


Glimpses of the Genovese Effect

27 July 2015

  There is a Sinhala proverb which goes “Thaman hisata thama athamaya sevanala” (It is only one’s hand is the shelter/shadow for one’s head). It highlights what we are going to discuss in today’s column. ...


A collective conscience and an accord

25 July 2015

''The working class did not rise like the sun at an appointed time. It was present at its own making – E.P. Thompson''  The political document unveiled by the JVP is a spirited attempt to infuse a moral and intel...


Columnists More