Pakistan today announced its decision to switch over to a negative list regime for trade with India and phase it out by the year-end as it normalises bilateral trade with this country.
The Pakistan cabinet chaired by Prime Minister Yousuf Raza Gilani "unanimously approved the phasing out of the negative list" regime in its trade with India by December, a statement issued by the prime minister's office said.
"After that, the process of trade normalisation between the two countries will be completed," the statement said.
The negative list has more than 1,200 items that cannot be traded with India. Pakistan, however, will be able to import around 6,800 other items from India against the 1,950 items allowed to import from India, at present, under the positive list.
The commerce ministry had finalised a smaller negative list of 636 items but this list was abandoned due to opposition from several stakeholders, including the textiles and industries ministries.
India has welcomed the decision of the government of Pakistan to switch over from a positive list regime to a smaller negative list for trade with India.