India Pakistan Trade Relations

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This site provides detailed information on India Pakistan Trade Relations. The site also focuses on the current developments in trade relations between India and Pakistan.

India Pakistan Trade Relations are facilitated by the Federation of Indian Chambers and Commerce (FICCI) and the Federation of Pakistan Chambers of Commerce & Industry (FPCCI). FICCI and FPCCI are the representatives of the trade and business community of their respective countries. The main objectives of these two chambers of commerce is to facilitate trade and business opportunities between India and Pakistan. Further, their common goal is to increase ethical business activities between each other and within all South Asian nations. India Pakistan trade relations are focused along the following lines:
  • Trading policies
  • Trading procedures
  • Trade contracts
  • Trade administrative and regulatory procedures
  • Trade and investment opportunities
  • Business networking for trade

India Pakistan trade relations - policies of India

  • Removing government controls and creating an atmosphere of trust and transparency to promote entrepreneurship, industrialization and trades.

  • Simplification of commercial and legal procedures and bringing down transaction costs.

  • Simplification of levies and duties on inputs used in export products.

  • Facilitating development of India as a global hub for manufacturing, trading, and services.

  • Facilitating technological and infrastructural upgradation of all the sectors of the Indian economy, especially through imports, thereby increasing value addition and productivity, while attaining global standards of quality.

  • Neutralizing inverted duty structures and ensuring that India's domestic sectors are not disadvantaged in the Free Trade Agreements/Regional Trade Agreements/Preferential Trade Agreements that India enters into, in order to enhance exports.

  • Upgradation of infrastructural network, both physical and virtual, related to the entire foreign trade chain, to global standards.

  • Revitalizing the Board of Trade by redefining its role, giving it due recognition and inducting foreign trade experts while drafting.

  • trade policies.

  • Involving Indian Embassies as an important member of export strategy and linking all commercial houses at international locations through an electronic platform for real time trade intelligence, inquiry and information dissemination.

India Pakistan Trade Relations - Policy of Pakistan

Unlike the previous reservation of foreign investment in manufacturing sectors only, the new liberal investment policy allows investments in almost all sectors. But the new investment policy of Pakistan has few reserved sectors, opening up of which may destabilize Pakistan's internal security. The new policy regime is much more liberal regarding foreign investment into Pakistan's domestic market. The policy is framed to help mobilizing domestic financial resources towards long term investment and to add liquidity to the Pakistan's domestic financial market.

Manufacturing Sector:
  • 100% equity holding is allowed to the foreign investors on industrial projects, which do not require any formal permission from the government of Pakistan.

  • No Objection Certificates (NOC) is not required for setting-up a business unit in Pakistan except for areas that are marked as negative for business development.

  • Government permission/sanction is not required for setting up industry, on lines like:

    • Term of business
    • Field of activity
    • Location of business activity
    • Size of business
  • Strict government protocol is to be followed for making investments in sectors like:

    • Radioactive materials
    • Arms and ammunitions
    • Explosives
    • Currency, mint, and security printing
    • No new unit for the manufacture of alcoholic beverages or liquors will be allowed
Non-manufacturing sector:

Registration of the companies with Security Exchange Commission of Pakistan under the Companies Ordinance, 1984 is a must. Further, the State Bank of Pakistan's relevant provisions are to be met accordingly for making investments in Pakistan or setting up a business in Pakistan. The government of Pakistan has further eased the investment norms for the Pakistani repatriates to facilitate investment into Pakistan's domestic market.

Foreign investment in Pakistani market are now allowed in sectors like:

  • Service
  • Infrastructure
  • Social and Agriculture