MFN status alone 'pointless': Pak. Minister

By Our Special Correspondent

NEW DELHI, AUG. 24. The Pakistan Commerce Minister, Mr. Abdul Razzak Dawood, today said granting the most favoured nation (MFN) status to India was ``pointless'' unless some of the obstacles in bilateral trade were removed. On other contentious issues, he said the ban on sugar imports would continue but the embargo on textile machinery imports would soon be lifted.

At an interactive session with businessmen organised by the Federation of Indian Chambers of Commerce and Industry here, Mr. Dawood said the grant of MFN status by India had not resolved Pakistan's problems in exporting goods to this country. The ``speedbreakers'' in bilateral trade should instead be taken up for discussion. For a level-playing field, there was a need to examine tariff and non-tariff options as well as subsidies on both sides, he said. There was also a need for easier visa availability, free movement of personnel, harmonisation of customs procedures and improvement in banking procedures.

On the proposed Iran-India gas pipeline, Mr. Dawood said Pakistan did not object to the pipeline traversing its territory. The issue was not specifically taken up during talks with the Indian authorities but Islamabad had informed New Delhi and Teheran that it had no objection. On supplying power to India, he said Pakistan did have surplus power but as additional power generating capacity was not being created, the surplus might not last till next year.

The lifting of the ban on textile machinery imports made ``good business sense'', he said pointing out that last year the ban on textile imports had been removed as part of the efforts to liberalise the economy.

However, the ban on sugar imports from India would remain. Mr. Dawood sought to assure Indian industrialists that politics of the subcontinent or pressure groups were not responsible for the decision, which was purely based on economic considerations. Pakistan right now had surplus sugar and in case a shortage developed Indian sugar would be imported, he said.

In addition, he said, there would be no problem in adding to the limited list of items allowed to be traded with India. In case Pakistan businessmen were interested in removing items from the restricted list, the request would be processed within a week.

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