The Union Cabinet Okayed the Commerce Ministry’s proposal to reduce the list of sensitive items under South Asian Free Trade Agreement (SAFTA) for Pakistan by 30%. India will also slash import duties on about 234 items from Pakistan under the bilateral trade normalization programme. India seeks a quid pro quo form Pakistan and wants it to allow goods to be traded through the land routes
Pakistan allows only 137 items to be imported via the Attari land route. The remaining goods are imported via sea route which makes exports largely impossible for Indian traders. Indian authorities have been demanding Pakistan to permit all goods to be traded through land, but the demand has not been agreed.
India and Pakistan began the trade normalization process in early 2011 which later paved way for speedy liberalization of trade and investments.