AgenciesPakistan Wednesday announced that it will allow the private sector to import 0.5 million tonnes of white sugar besides cotton from India signalling thaw in ties.
ET was the first to report in February that Pakistan is exploring options to start importing cotton from India and relaunch trade ties.
Pakistan Finance Minister Hammad Azhar, addressing a press conference in Islamabad on Wednesday, announced that sugar trade was being re-opened with India this year because of the difference in prices in the neighbouring country.
"We have allowed the import of sugar but in the rest of the world too, sugar prices are high because of which imports are not possible. But in our neighbouring country — India — the prices of sugar are much less as compared to Pakistan so we have decided to reopen sugar trade with India for up to 0.5 million tonnes for the private sector."
He said the government estimated a difference of 15-20 per cent in sugar prices in India as compared to Pakistan.
Talking about the reason for allowing the import of cotton from India, Azhar said that there was a high demand for it because Pakistan's textile exports had increased but last year's cotton crop was not good.
"The difference [in prices] affects the SMEs (small and medium enterprises. Big industry can buy it from Egypt or other countries."
The resumption of import of these goods will lead to partial revival of trade relations. On August 9, 2019 Pakistan downgraded trade ties with India in reaction to the latter's decision to revoke Article 370 of its Constitution.
ET was the first to report in February that Pakistan is exploring options to start importing cotton from India and relaunch trade ties.
Pakistan Finance Minister Hammad Azhar, addressing a press conference in Islamabad on Wednesday, announced that sugar trade was being re-opened with India this year because of the difference in prices in the neighbouring country.
"We have allowed the import of sugar but in the rest of the world too, sugar prices are high because of which imports are not possible. But in our neighbouring country — India — the prices of sugar are much less as compared to Pakistan so we have decided to reopen sugar trade with India for up to 0.5 million tonnes for the private sector."
He said the government estimated a difference of 15-20 per cent in sugar prices in India as compared to Pakistan.
Talking about the reason for allowing the import of cotton from India, Azhar said that there was a high demand for it because Pakistan's textile exports had increased but last year's cotton crop was not good.
"The difference [in prices] affects the SMEs (small and medium enterprises. Big industry can buy it from Egypt or other countries."
The resumption of import of these goods will lead to partial revival of trade relations. On August 9, 2019 Pakistan downgraded trade ties with India in reaction to the latter's decision to revoke Article 370 of its Constitution.
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9 Comments on this Story
 | Vijigishu 9 hours ago Where is their illegitimate father china? |
 | Baruun 9 hours ago India cannot go when Pakistan wants why now when Pakistan cannot hide the sneaking terrorists pushed inside India because of international surveillance and scrutiny by FATF. Otherwise sitting pretty working against Indian interests and keep on supplying arms and proxy terrorists also resort to unprovoked firing at LOC to kill innocents. Friendship with Pakistan is a recipe for another univited disaster like Kargill or Pulwama. |
| varadharajan balasubramanian10 hours ago Pakistan wants Indus treaty water though they remain bitter enemies and wage proxy war against us. Why export sugar and cotton to Pakistan? |