No sign of Pak. granting MFN status

By B. Muralidhar Reddy

ISLAMABAD, JULY 9. The Pakistan Government tonight sent yet another signal to India that unless the `centrality of Kashmir' was acknowledged as the factor responsible for bedevilling bilateral relations, it was not prepared for an engagement on `other issues.'

The Government unveiled the new trade policy for 2001- 2002 without a single reference to India. The business community on both sides of the border was hoping that the Government would reciprocate some of the unilateral steps taken by New Delhi last week, and take the first step towards conferring the Most Favoured Nation status on India.

The Pakistan Commerce Minister, Mr. Abdul Razak Dawood, who read out the new policy on the State-controlled television and radio, maintained that the basic objective of the policy was to boost the foreign exchange earnings above the $10- billion mark. The policy was approved earlier at a Cabinet meeting, presided over by the Pakistan President, Gen. Pervez Musharraf.

The decision to skirt India-related issues in the new policy has not exactly come as a surprise. There were enough indications on Sunday itself, when it became known that the Commerce Minister would not be part of the delegation accompanying Gen. Musharraf to New Delhi for the Agra summit.

It could not immediately be ascertained if the Government had given in to the demand from the local industry for permission to import some more items from India. For instance, there was immense pressure for the inclusion of textile machinery in the list of items that could be imported.

Under the existing policy, Pakistan allows free import of 603 items from India. A high-level Indian business delegation, on a recent visit to Pakistan, had requested the military Government to expand the list even if it was not possible to confer the MFN status.

A clearer picture will emerge tomorrow as the Minister is scheduled to hold a press conference on the new policy. India has unilaterally granted the MFN status to Pakistan and has been seeking reciprocity. However, the Pakistani contention is that it can be considered only after the Kashmir dispute is settled.

The Government's attitude on other issues was evident from a statement of the Minister for Science and Technology, Prof. Atta- ur-Rahman, here. He said there could be no cooperation with India in the field of information technology until Kashmir was resolved. There was tremendous scope in India in the fields of science and technology ``but we cannot move ahead in this area till Kashmir issue is resolved because it is the fundamental issue between the two countries,'' he said.

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