'Pakistan to allow more imports from India'

Pakistan's decision to expand its list of imports from India is part of efforts to cut its widening trade deficit and reduce rising transport costs on imports from far-off countries.

"We are gradually liberalising our bilateral trade with India," de facto Commerce Minister Ahmed Mukhtar said while announcing new trade policy on state-run television late on Friday.

Mukhtar said Pakistan was adding diesel, fuel oil and many other items on the list of imports from India.

"It will be cheaper (to import from India) due to differences in transportation cost. This will also help us to address our global trade deficit," he said.

Pakistan's trade deficit for the fiscal year 2007/08 (July-June) widened by 52.95 per cent to $20.74 billion as against $13.56 billion in the same period in 2007, mainly due to rising global oil prices.

Oil accounted for 28 per cent of Pakistan's total imports of $35.95 billion during the first 11 months of 2007/08.

Other items that can now be imported from India includes CNG buses, academic, scientific and references books, machinery and equipment for mining, quarrying and grinding of minerals and certain raw materials.

"Cheaper raw material sourced from India would make our exports more competitive in international market," Mukhtar said.

Stainless steel and cotton yarn, which is importable from Indian by train, can now also be imported by trucks through their main border crossing of Wagah to further reduce the cost of business, Mukhtar said.