Pak: India denies withdrawal of tariff concession

Islamabad, Feb 28: Indian High Commission in Pakistan has categorically described the local media reports as incorrect, which suggested that India had unilaterally withdrawn tariff concessions extended to Pakistan under South Asian Free Trade Agreement (SAFTA).

''It has been wrongly reported in various newspapers of Pakistan,'' The News quoted an official statement issued by the high commission as saying.

Minister for Commerce and Industry Kamal Nath while addressing a press conference in Kathmandu at the meeting of the Safta Ministerial Council on Monday said India had urged Pakistan to comply, in letter and spirit, with Safta, an agreement which Pakistan also signed and acceded to, the official statement said.

Mr Kamal Nath said India made it clear to Pakistan that there could not be a qualified implementation of Safta, adding, both the countries will discuss the issue bilaterally and another ministerial council meeting will review this issue in six months.

''The minister had also pointed out that implementation of Safta will benefit Pakistan's economy and hoped that Pakistan will recognise this, and the need to implement Safta in letter and spirit,'' the statement said.

He said that as a gesture, India was not withdrawing, for the time being, the concessions it had extended to Pakistan under Safta.

India is for consolidating Safta and had already implemented its obligations under the agreement and it also had the right and the option to deny Safta benefits to Pakistan because it was not receiving similar benefits from Pakistan under the agreement.

Pakistan would not review the tariff concessions extended to all member countries including India under the South Asian Free Trade Agreement, Pakistan's foreign ministry spokeswoman yesterday said.

Pakistan will remain committed to continue with the trade liberalisation program as stipulated in the SAFTA agreement, she said.

UNI