labels: economy - general
Pakistan agrees to implement SAFTA in fullnews
05 April 2007

Mumbai: Pakistan, which has been wavering on the implementation of the South Asia Free Trade Agreement (SAFTA), has finally come around to the majority view of SAARC leaders agreeing that the regional free trade agreement should be effected in "letter and spirit".

The `SAARC Declaration', unanimously adopted by all the leaders, including Pakistan prime minister Shaukat Aziz, said that "effective market access through smooth implementation of trade liberalisation programme" be ensured.

The implementing organs of the South Asia Free Trade Area (SAFTA) agreement should review the progress of opening the markets among each other, it said.

The Declaration, released at the conclusion of the two-day summit of heads of state of members, "emphasised that SAFTA should be implemented in letter and spirit".

In the backdrop of growing importance of the service sector in the overall GDP of the regional economies, the Declaration said SAFTA should integrate trade in services. It also called for finalisation of an agreement in services at the earliest.

While the SAFTA was operationalised in July 2006, Pakistan has not implemented the pact retaining the 'positive' list of items (restricting imports) from India citing that New Delhi has not lifted non-tariff barriers (NTBs).

However, Pakistan could not give any specific instance of NTB.


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Pakistan agrees to implement SAFTA in full