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Karachi, 1 September 1963

The Government of India and the Government of Pakistan,

WITH a view to developing, extending and consolidating trade and economic relations between the two countries,

HAVE resolved to enter into the following Agreement

Article I

The two Governments recognising the needs and requirements of each other in the context of their developing economies undertake to explore all possibilities for expansion and promotion of trade between the two countries on the basis of mutual advantage.

Article II

Each Government shall accord to the commerce of the country of the other Government treatment no less favourable than that accorded to the commerce of any third country.

Article III

The provisions of Article II shall not apply to the grant or continuance of any :

(a) privileges which are or will be granted by either of the two Governments in order to facilitate frontier trade,

(b) preferences, advantages, privileges or immunities accorded by either country to any third country prior to the 15th August, 1947, or in replacement thereof, and

(c) any advantages accorded in connection with Customs Union, or Free Trade Zone of which either may become a member.

Article IV

With regard to commodities mentioned in Schedules 'A' and 'B' to this Agreement, the two Governments shall facilitate imports and exports to each other 9 territories in accordance with their respective laws, regulations and procedures.

Article V

The Export and/or Import of goods not included in Schedules 'A' and 'B' will also be permitted in accordance with the laws, regulations and procedures in force in either country from time to time.

Article VI

The two Governments further agree to enter into such Special Arrangements, including arrangements relating to Border Trade, as may be considered by them to be necessary, from time to time, during the period of the validity of this Agreement to facilitate the movement of goods from one country to the other.

Article VII

The two Governments agree to accord subject to their respective laws and regulations, reasonable facilities for the holding of trade fairs and exhibitions and visits of businessmen and Trade Delegations sponsored by the Government concerned.

Article VIII

In order to facilitate the implementation of this Agreement, the two Governments shall consult each other as and when necessary and also review the working of the Agreement at least once a year.

Article IX

This Agreement shall come into force from the 1st of September 1963 and shall remain in force for a period of two years. The Agreement will be extended for a further period of one year unless either party gives to the other notice for its termination three months before the expiry of the said period of two years.

DONE at Karachi this first day of September, 1963 A.D. in two original copies in English language, both of which are equally authentic,

For the Government Of India


For the Government of Pakistan



I Animal and Marine Products
1 Leather Manufactures excluding boots and shoes
2, Finished leather
3. Animal casings.

II Agricultural Products
1 - Cigar and Cigarettes
2. Hemp other than manila, sisal and aloe
3. Palmyra fibre
4. Tapioca, Tapioca Flour (Manioc Meal) and products
5. Saga
6. Fresh fruits including bananas
7. Fruits products
8. Plywood (commercial and Tea-chests)
9. Cotton seed oil
10. Henna powder
11. Coir, Coir yarn and coir products
12. Tobacco (raw and manufactured)
13. Tamarind
14. Turmeric
15. Castor oil
16, Groundnut oil
17. Linseed oil
18. Salad oil
19. Cotton seed cake
20. Deoiled cake (Rice bran)
21. Vegetable oil
22. Essential oils
23. Beedi leaves,

II Drugs, Pharmaceuticals, Chemicals and Allied Products
I - Calcined magnesite
2. Bichromates
3. Alumina ferric
4. Ferro manganese
5~ Pigments, paints and varnishes
6. Printing inks other than black
7. Fountain pen ink
8. Myrohalan and ermact
9. Nux voinica alkaloids and preparations
10. Soaps, toiletries, hair oil and perfumes
I1 Glycerine
12, Hydraulic brake fluid
13. Pharmaceuticals, drugs, medicines, vaccine, serums, etc. wholly indigenous.
14, Safety matches and fireworks
15. Crockery
16. Magnesium chloride
17. Ethyl Alcohol and Industrial Alcohol
18. Rubber products including bicycles tyres and tubes other than those types of tyres and
tubes export of which is banned.
19. Asbestos products
20. Liquid Glucose
21. Benzene
22. Surgical cotton
23. Strychnine
24. Morphine
25. Bromides (Sodium and Potassium and Calcium)
26. Liquid Bromide
27. All antibiotics
28. All alkaloids
29. Synthetic drugs
30. Tetracyclins
31. Hamycin
32. Anti-Tubercular drugs (P.A.S. and Salts)
33. Anti-Dysentry drugs
34. Bleaching powder
36. Hydrochloric acid
36. Hydrogen peroxide
37. So dium, car nate
38. Liquid phlorine
39. Anti-Leprotic drugs (D.S.S. and Derivatives)
40. Amodiaquin
41. Vitamin A'
42. Vitamin C'
43, Ernetine
44. Sanfonine
45. Quinine
46. Brucine
47. Synthetic hormones
48. Aspirin
49. Calcium gluconate and other calcium salts
50. Ferro gluconate
51. Nikethamide
52. Insecticides, pesticides (formulatics only), Fungicides
53, Dyeing and tanning products
54. Dentiffics.

IV. Engineering Products

1. Aluminium and A.C.S. conductors
2. Insulators
3 Distribution Transformers
4. Transmission poles and towers
5. Air conditioners, water coolers and refrigerators
6. Public address equipment
7. Radio receivers
8. Batteries
9. Rubber and plastic insulated house wiring cables
10. Electric motors
11. Bicycles and bicycle parts
11 Oil expellers
13. Electricity House service meters
14. Agricultural implements (if tractor drawn)
15. Cotton and hair belting
16. Screws and hinges
17. Diesel engines (stationary)
18. Coated abrasives
19. Duplicators
20. Zip fasteners
21. Buckles
22. Eyelets
23. Vacuum bottles and flasks
24. Collapsible tubes
25. Ball bearings
26. Pumps (coupled with prime movers or not) (Centrifugal pumps)
27. Pumps driven by diesel engines and electric motors
28 Railway materials including rolling stock, etc.
29. Precision and scientific instruments; survey instruments
30. Machinery parts
31. Metal containers
32. Paper and pulp making machinery
33. Grey iron castings, forgings and cast iron pipes
34. Rolled steel products
35. Steel castings and forgings
36. Foundry castings for machine parts
37, Crown corks
38. Cutlery
39. Nuts, bolts, etc.
40. Sewing machines
41. Electric fans and parts
42. Safety Razor blades
43. Handtools and small tools
44. Ebonite sheets
45. Steel furniture
46. Tin plates containers
47, Household utensils of iron and steel, brass and aluminium
48. Kerosene stoves
49. Weighing machines
50. Split pulleys
51. Scientific instruments of all types
51 G1 buckets
53. Arc welding electrodes
54. Enamelled copper wire
55. Sandpaper
56. Locks and padlocks
57. Steel structural and fabrication and conduit pipes and fittings
58, Sugarcane crushing machinery
59. Pressure lamps and stoves
60. Milk steel pipes
61, Electric tools, appliances and accessories such as conduit pipes, switches, bells, holders, cut-outs, etc.
62. Rods and tubes
63. Fire extinguishers
64. Textile machinery
65. Cement machinery

V. Mining Products
1 . Mica bricks
2. Micanite
3. Ground mica
5. Ilmenite
6. Magnesite
7. Iron ore
8. Manganese ore
9. Coal and coke
10. Limestone
11. Stone boulders and Pakur stones

VI Plastics and Sports Goods
1. Spectacle frames
2. Fountain pens
3. Plastic and Moulded goods including umbrella handles
4. Linoleum
5. Leather cloth
6. Bangles
7. Sports goods
8. Decorative laminate.

VII. Cotton and Woollen, Textiles, such as
1. Cotton, silk, art silk, and rayon fabrics
2. Handloom fabrics
3. Cotton sewing thread
4. Durries
5. Furnishing fabrics
6. Garments

VIII. Food
1 . Spices including pepper, provisions and oilman stores
2. Preserved fruits and vegetable products (Bottled and canned)
3. Processed food
14. Cane, Jaggery and Powder (Indian Gur)

IX. Household and Building Materials
1. Window, door and other frames

I GT Pipes and fittings
3. Household heating and electrical fittings and fixtures
4. Cooking ranges and heaters
5. Electric irons, toasters, kettles, etc.
6. Roofing tiles
T Sanitary ware
8. Manhole covers and plates
9. Hurricane lanterns
10. Safes, strong boxes.
11. Roof fittings
12. Prefabricated building materials, sanitary and plumbing materials.

X. Others
I . Biscuits
2. Confectionery and chocolates
3. Potable spirits and beer
4. Red Earthen tiles
5. Agarbathies & Pencils
7. Carbon paper and typewriter ribbons
8. Books (Printed and others)
9. Brass artware and other handicrafts
10. Bees wax
11. Paraffin wax
12. Opium, raw
13. Exposed cinematographic films whether developed or not
14. Gramophone records
15. Clocks and watches
16. Umbrella and umbrella parts
17. Handicrafts and cottage industry products
18. Artificial dentures
19. Stationery articles
20. Ball-point pencils
21. Sandalwood chips
22. Cigarette paper
23. Cycle rims
24. Artistic silver, copper, brass and bidri products
25. printing inks
26. Guar gum
27. Ivory articles
28. Wood carvings
29. Earthenware
30. Filigiri work
31. Fancy jewellery
32. Basket ware
33. Shellac and seed lac
34. Forest produce including bamboos, canes and sun grass
35. Khari salt
36. Silbatta
37. Cutch and gambier
38. Myrobalan and Myrobalan products
39. Glass and glassware including tableware
11 Furs, raw or tanned, all sorts and manufactures thereof
13. Bile of Cow (oxgall)
14. Sheep casings
15. Animal hair (new)
16. Dried blood of animals
17. Gelatine and take glue
18. Cotton raw
19. Cotton waste soft [as at (i) to (xiii) below], cotton linters and yellow pickings:

i) Bondas
ii) Card Fly
iii) Card strips
iv) Comber fly
(v) Cylinder fly
(vi) Droppings willowed. and un-willowed
(vii) Flat fly willowed and un-willowed
(viii) Cutter fly
(ix) Luckrine fly
(x) Oily
(xi) Rings weep
(xii) Rubbings
(xiii) Solid bondas

20, Hard cotton waste in cuts or pieces not exceeding three inches in length
21. Cotton seed and cotton seed oil cake
22. Cotton seed hull fibres
23. Cotton seed hull or husks
24. Cotton durries and carpets used for floor coverings
25. Cotton rope and niwar
26, Fishing ropes
27. Cotton fishing nets
28. Cotton rags
29. Cotton yarn
30. Cotton textiles, (grey or specialised goods)
31. Handloom cloth
32. Hosiery
33. Sewing thread
34. Readymade garments
35. Cotton wool absorbent
36, Kgrpok, Kapok seed and Kapok seed oil
37. Sunn hemp
38. Raw silk waste, unprocessed
39. Cumin seeds
40. Castor seed and castor seed cake
41. Oil seed cake, all sorts
42. Guar seed and its by-products
43. Essential oils
44. Shark liver oil
45. Methylated spirit
46. Power Alcohol
47. Molasses
47-A. Dhanicha seeds
47-B. Chuna Khari pearls
47-C. Eggs and Poultry
47-D. Books and Periodicals
48. Dried fish, fish meal and fish maws
49. Bones crushed, bonemeal and bone grit
50. Bone dust and bone sinews and similar articles
51. Horns and hooves, crushed and uncrushed including shavings
52. Honey and bees wax
53. Herbs, crude drugs, extracts and indigenous drugs and medicines
54. Artemissia
55. Ephedra and Ephedrine hydrochloride including crystals and extracts
56. Santonine
57. Drugs and Pharmaceuticals
58. Glycerine
59. Chemicals
60. Pyrethrum insecticides
61. Turpentine
62. Henna leaves and powder
63. Saltpetre
64. Rosin
65. Rock salt and sea salt
66. Chrome ore
67. Gypsum
08. Magnesium Silicate (Soap stone)
69. Sodium silicate
70. Lime and lime stone (from West Pakistan only)
71. Surgical instruments including parts and accessories thereof
72, Medical, dental and veterinary instruments and appliances, Hospital equipment
74. Surgical rubber goods
75. Scissors, all sorts
76. Cutlery
77. Household utensils
77-A. Forest Produce
77-B, Fresh Fruits
77-C. Green spices
77-D. Betel nuts
78. Aluminium, Brass, copper and other metallic wares, all sorts
79. Hardware all sorts
80. Machinery and spare parts
81. Mechanical tools
82. Electrical goods including fans, etc.
83. Musical instruments including parts and accessories thereof
84. Articles made of marble
85. Ivory goods
86. Brass and ivory inlaid wooden articles
87. Handicraft articles, all sorts
88. Embroidered goods, all sorts
89. Novelties and Curies other than those containing silver and gold
90. Gold and silver thread (real zari) and imitation articles made therefrom
91. Kashmir Artware
92. Pashmina cloth and manufactures thereof with or without silk and/or cotton embroidery work
93. Art fabrics
94. Toys, all sorts
95, Conch shell products
96 Ded shoes
97. Glass bangles
98. Hand bags
99. Peshawari Chappals with Zari and embroidery work
100. Canvas shoes with rubber soles
101. Tea
102. Rice
103. Biscuits and confectioneries
104. Canned and Bottled fruits, chutnies, pickles, jellies, curry powder and syrups
105. Canned fish, frozen fish and prawns and shrimps
106. Beer
107. Tobacco including Virginia type
107-A. Betel leaves
107-B. Fluorspar
107-C. Nylon guts and mono filament
107-D. Live Tortoise
108. Macaroni and vermicelli
109. Sports goods, all sorts, games, gymnastics and athletic , accessories and requisites thereof.
110. Guts for tennis rackets and strings for musical instruments
111. Rubber manufactures,
112. Rattan (cane) furniture and its other manufactures
113. Hurricane Lanterns
114. Pressure lamps, stoves and mantles
115. Sewing machines
116. Padlock
117. Sanitary ware
118. Ornamental tiles
119. Cement, Portland
120. Asbestos sheets
121. Toilet requisites and perfumery
121 Razor Blades
123, Spectacle Frames
124. Sun glasses
125. Imitation Jewellery
126. Fountain pens and pencils
127. Plastic manufactures
128. Buttons (Mother of pearl, horns, etc.) all sorts
129. Bicycles and parts
130, Cycle tyres and tubes
131. Paints and varnishes
132. Newsprint, paper and board, all sorts.
133. Gramophone records
134. Postage stamps
135. Chemical Fertilizers including Urea
136. Industrial alcohol
137. Fresh fish
138. coal

NOTE : The export of goods included in this list will be subject to availability and in accordance with the laws and regulations and procedures in force in Pakistan from time to time.



In pursuance of Article VI of the Trade Agreement between the Government of India and Government of Pakistan, the two Governments have agreed to enter into, by means of this Protocol,
S.No Commodities Country of Exports Country of Import and Quantities Route Remarks





Stones boulders including pakur stone

Raw jute and jute cuttings

Raw cotton





95QOO tons
(per month)15,00 tones (per month)Pakistan

40,000 tons
(per year)

10,000 tons (per year.)



West 20QOO tons (per month) By all rail route

By rail-cum sea route

By rail (Broad gauge)

By rail (Meter gauge)

Provided supplies are not interrupted by muses beyond human control, such as shoes, accidents, floods, etc.

To be considered by the Government of India if this quantity also could be supplied by all rail route.

The movement of boulders will be subject to details being settled between the Railways concerned

Quantities to be indicated by India to Pakistan by the end of September each year.

Special Arrangements in respect of the commodities specified below

THIS Protocol is signed at Karachi on the first day of September, 1963, in two original copies in English language, both of which are equally authentic.

Sd /

S. VOHRA - For the Government of India.


E.A. NAIK - For the Government of Pakistan.



Karachi 1st September, 1963

My Dear Mr. VOHRA,

During the course of the discussions between our two delegations regarding the conclusion of the new Trade Agreement signed to-day, it was agreed that the validity of the Trade Agreement between India and Pakistan, dated March 21, 1960 shall be deemed to have been extended to August 31, 1963.

1 shall be grateful if you can kindly confirm that the above sets out correctly the understanding reached between us.

Yours sincerely,




Leader of the Indian Trade Delegation, Karachi.

My Dear Mr. NAIK

I write to acknowledge the receipt of your letter of today's date which reads as follows

(Text Not Reproduced)

I confirm that the foregoing correctly sets out the understanding reached between us.

Yours sincerely,



Mr. E. A. NAIK,

Leader, Pakistan Trade Delegation, Karachi.

Karachi, 1st September, 1963

My Dear Mr. NAIK,

During the course of discussions between our two delegations regarding the review of the Trade Agreement' between the Government of Pakistan and the Government of India dated March 21, 1960 and regarding the conclusion of the new Trade Agreement between the two countries signed to-day, it was agreed as under :

(a) With reference to para 7 of Protocol No. 1 of the above-said Agreement, dated March 21,1960, the amount outstanding in the "National Bank of Pakistan Clearing Account 'A'" maintained with the State Bank of India under the said Protocol No. I may be liquidated by import by India of the following commodities from Pakistan :

(i) Commodities mentioned in Group 'E' of Schedule I of Annexure I to the Protocol No. I mentioned above.

(ii) Urea.

(iii) Industrial Alcohol.

(iv) Such other commodities as may be mutually agreed upon.

(b) The "National Bank of Pakistan Clearing Account 'A'" with the State Bank of India will be continued beyond August 31, 1963 under the terms and conditions provided in Protocol No. 1 to the above-said Agreement, dated March 21, 1960 and the banking arrangements made between the National Bank of Pakistan and the State Bank of India in pursuance thereof, till such time as the entire amount outstanding is liquidated.

(c) It was agreed that the following commodities upto the quantity/value mentioned against each may be imported by India towards the liquidation of the said amount outstanding:

1. Urea 30.000 tons
2. Gypsum Indian Rs 50,00,000
3. Industrial alcohol Indian Rs 12,00,000

The prices, specifications, quantities etc. of urea and Gypsum will be negotiated by the concerned Pakistan Industrial Development Corporation on the one hand and the State Trading Corporation of India and the Fertiliser Corporation of India, respectively, on the other, to the satisfaction of the Contracting Parties. Contracts will be entered likewise between the concerned manufacturers and the State Trading Corporation of India regarding export of Industrial Alcohol,

(d) It was agreed that subject to the rules and regulations for the time being in force, Pakistan will facilitate the export to India of the commodities as mentioned in paragraph 1(a) and 1(c) above..

2. 1 shall grateful if you would kindly confirm that the above sets out correctly the understanding reached.

Yours sincerely


Indian Trade Delegation

Mr. E.A. NAIK,
Leader, Pakistan Trade Delegation, Karachi.


Ist September, 1963

My Dear Mr. VOHRA,

I write to acknowledge receipt of your letter of to-day's date which reads as follows :

(Text Not Reproduced)


2. 1 confirm that the above sets out correctly the understanding reached.

Yours sincerely,


E. A. NAIK Leader, Pakistan Trade Delegation



Indian Trade Delegation, Karachi.



In pursuance of Article VI of the Trade Agreement between the Government of India and the Government of the Islamic Republic of Pakistan signed on the 1st September, 1963, the two Governments have agreed to enter into the following special Arrangement to facilitate, on a self-balancing basis, the exchange between the two countries of the commodities mentioned in the Schedule below, to the extent of the values mentioned against each subject to the conditions mentioned hereinafter :
Exports from Pakistan to India Exports from India to Pakistan
Joshi Rice
Kagni Rice Rs 365.00 lakhs
Coal Rs.200 lakhs

Biri leaves Rs 40 lakhs

Spices -
(excluding chillies, ginger,
cloves and turmeric) Rs 45 lakhs

Lime stone Rs. 10 lakhs

Umbrella fittings Rs. 12 lakhs

tone boulders Rs. 10 lakhs

Crude Drugs Rs. 12 lakhs

Railway equipment as Rs.36 lakhs

Total Rs 365.00 lakhs Total
Rs365.00 lakhs

India Bilateral

Ministry of External Affairs, India

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