Pakistan and India are likely to resume trade relations soon as Pakistan is currently undergoing a “historic shortfall” in the production of cotton.
According to recommendations, cotton and yarn will be exported from India by June 30, 2021.
Pakistan had suspended bilateral trade with India in August 2019.
Trade relations between Pakistan and India may resume soon and preparations are being made to import sugar, cotton, and yarn from India, Geo News reported Tuesday, citing sources.
According to sources, the Ministry of Commerce will submit summaries prepared in this regard to the Economic Coordination Committee (ECC) for approval tomorrow.
Meanwhile, the commerce ministry has sent the summaries to the ECC with the approval of Prime Minister Imran Khan.
Sources added that it has been suggested to import sugar from India through the Chinese Trading Corporation of Pakistan (TCP) as well as some commercial importers.
At present, Indian exporters are not allowed to participate in TCP tenders due to a ban.
Per the report, it is proposed to import cotton and yarn from India by June 30, 2021, while the method of import will be via land.
Government sources say that Pakistan has to import cotton to meet the shortfall, adding that importing cotton and yarn from neighbouring India will be cheaper for Pakistan.
It may be recalled that Pakistan had suspended bilateral trade with India in August 2019.
Credit: Geo TV