M A I N   N E W S

PM orders Punjab to four-lane road to Attari
Rajeev Sharma
Tribune News Service

New Delhi, October 26
Prime Minister Manmohan Singh has instructed the Punjab government to take up the four-laning of Amritsar-Attari road on a priority basis in view of the intensifying economic engagement with Pakistan which has already started four-laning of Lahore-Wagah border road.

A decision to this effect was taken at a meeting of the Trade and Economic Relations Committee (TERC) here yesterday which was chaired by the Prime Minister. The cost of the four-laning work will be borne by the state government. This decision is in harmony with the TERC’s call for investment in trade-related infrastructure to facilitate imports from neighbours.

The TERC has also decided to give an important trade-related concession to Pakistan by allowing import of molasses from Pakistan in wagons instead of the current practice of drums, the PMO announced today. Pakistan has been very keen on stepping up its molasses exports to India saying that it will be of mutual benefit as India is a major consumer of molasses while the Islamic country, though a major producer of sugarcane, is a meagre consumer of sugarcane-byproduct molasses because of its limited production of alcoholic drinks.

Pakistan has been pressing for exporting molasses in wagons for easier and smoother delivery but India had so far stuck to molasses imports from Pakistan in drums because of security reasons.

At the TERC meeting, the Prime Minister underlined the need for India to be pro-active in increasing economic interaction with all neighbours, particularly Pakistan and Bangladesh. In pursuit of this objective, the TERC approved steps to enable increased imports from Pakistan, Bangladesh and Myanmar to rectify existing imbalances and distortions in trade.

A significant Bangladesh-specific proposal approved by TERC is that the Food Corporation of India would import jute bags in huge numbers from Bangladesh. Dr Manmohan Singh told the TERC that his vision was that India’s neighbours must acquire a greater stake in India’s economic growth by benefitting from it and India must be willing to import more from its neighbours, especially the less developed ones.

In pursuit of this vision, the TERC approved a early completion of an India-ASEAN Free Trade Agreement (FTA), the South Asian FTA and India-GCC FTA. The TERC has also discussed proposals for an India-Korea FTA, an India-Israel FTA and an India-Mauritius Comprehensive Economic Cooperation Agreement (CECA). India has already entered into an FTA with Sri Lanka and a CECA with Singapore.

The TERC also gave a green signal to have an FTA with the European Union. Prime Minister’s Media Advisor Sanjaya Baru said the negotiations with the EU could take at least two years.