India to export fuel to Pakistan

NEW DELHI, April 25 (Agencies): India plans to export petrol and diesel to Pakistan to help its rival meet its energy needs and to open up a new market for Indian refiners such as giant Reliance Industries, a report said. "Pakistan is keen to import refined petroleum products from across the border to save costs," the Economic Times said Monday, quoting an Indian government official with "direct knowledge" of the plan. The Indian side was due to put the final touches on the plan before a two-day meeting starting Wednesday between the commerce secretaries of India and Pakistan in Islamabad, the newspaper said. The meeting is aimed at renewing trade ties which have been at a standstill since a 2008 militant attack in Mumbai that killed 166 people. India blamed the attack on the banned Pakistan-based Islamist group Lashkar-e-Taiba. India imports about three-quarters of the oil it consumes but its refining capacity has expanded rapidly, making it a key player in the international market. The exports will open up a new market for large refinery players such as Reliance Industries and Essar Oil, the report said. Acrimonious ties between the neighbours eased last month when Indian Prime Minister Manmohan Singh and his Pakistani counterpart, Yusuf Raza Gilani, watched an India-Pakistan World Cup cricket match together in northern India. The nuclear-armed nations have fought three wars since attaining independence in 1947, two over the disputed territory of Kashmir. Indian officials believe greater trade would force the nations to maintain friendly ties and that India is in a position to meet Pakistan's fuel demands, according to the newspaper. Pakistan has a 12-million-tonne refining capacity which satisfies only half of its annual requirements, while India exports about 25 per cent of its 185-million-tonne refining capacity, according to official data. Meanwhile, report from Islamabad says: Commerce secretaries of Pakistan and India would meet here Wednesday and discuss various trade related issues to give impetus to the Pakistan-India economic engagement. Indian Commerce Secretary Rahul Khullar, along with a six-member delegation, will arrive here Tuesday to hold talks with his Pakistani counterpart Zafar Mehmood on trade related issues. "The talks would continue for two days on April 27 and 28 to cover various trade issues with an aim to boost trade among the neighbouring countries," sources told newsmen. This will be the second high-level interaction between the two countries after the resumption of dialogue on all bilateral issues. Home secretaries of the two countries met last month, followed by an informal meeting between their prime ministers at Mohali, India on the occasion of Pak-India Cricket World Cup semi-final match. The sources said that the two sides would try to settle outstanding issues and explore ways to give boost to cross-border trade. Among other issues, export of cement from Pakistan to India and import of cotton from India to Pakistan would feature in the discussions, besides development of trade infrastructure along the Wagah border, the sources added. Pakistan will seek relaxations from India on cotton export as the latter has started re-evaluating contracts from the Pakistani buyers, which they had signed with Indian exporters till October-2010. "All the contracts till October 2010 should be fulfilled on old agreed prices. However, for future cotton contracts be inked at prices commensurating with international prices" the sources added. The sources said that Pakistan would also take up the issue of enhancing the time period of cement inspection by Indian quality control authorities from one year to three years. The Indian officials usually visit Pakistani cement units for once in a year. The visit this year was delayed by six months, that created hurdles in exporting cement to India, they added. Both the sides will also discuss ways and means to improve trade infrastructure facilities on both the sides of Wagah border to facilitate the business community. Removal of non-tariff barriers would also be discussed during the two day deliberations, the sources said adding relaxation in imports of Pakistani products by European Union is also part of discussions.