Mr. Ehud Olmert, Minister of Industry, Trade and Labor signed last week an administrative order temporarily lifting the need for an import license to goods shipped from Pakistan. The decision was made after recent advances in relations between the two countries.
Foreign Minister Silvan Shalom and his Pakistani counterpart Khursheed Kasuri acknowledged the improvement in relations three week ago when they met publicly in Istanbul.
Ministry officials noted last week that Pakistan was classified as a developing country. Pakistan has a GDP per capita of $500, population of 151 million and its economy is largely based on agriculture and low technology industry. The economy is highly dominated by textiles. The textile industry account, according to official Pakistan's government reports, for 82% of exports.
Israel has never had official trade relations with Pakistan and the signing of the administrative order by Olmert is regarded by officials in Jerusalem as strong indication of the thaw in bilateral relations.
Officials from the Ministry of Industry, Trade and Labor emphasized that by lifting the import license requirement, Israel is signaling its willingness to promote and develop trade and economic relations with Pakistan. They added that Olmert's decision to lift the license requirement will no doubt contribute to the long process of building bilateral trade relations.
