Pakistan Wednesday announced that it will allow the private sector to import 0.5 million tonnes of white sugar besides cotton from India signalling thaw in ties.

ET was the first to report in February that Pakistan is exploring options to start importing cotton from India and relaunch trade ties.

Pakistan Finance Minister Hammad Azhar, addressing a press conference in Islamabad on Wednesday, announced that sugar trade was being re-opened with India this year because of the difference in prices in the neighbouring country.

"We have allowed the import of sugar but in the rest of the world too, sugar prices are high because of which imports are not possible. But in our neighbouring country — India — the prices of sugar are much less as compared to Pakistan so we have decided to reopen sugar trade with India for up to 0.5 million tonnes for the private sector."

He said the government estimated a difference of 15-20 per cent in sugar prices in India as compared to Pakistan.
 

Talking about the reason for allowing the import of cotton from India, Azhar said that there was a high demand for it because Pakistan's textile exports had increased but last year's cotton crop was not good.