Islamabad: In a move that could cast shadow on the South Asian Association for Regional Co-operation (SAARC) summit slated to be held later in 2003, Pakistan on June 30 sought the postponement of the fifth and last round of talks of South Asian Free Trade Agreement, (SAFTA) to be held in Kathmandu later in August.

Asked about reports that the SAARC summit could be delayed due to lack of progress on SAFTA, Pakistan Foreign Office spokesman Masood Khan told reporters, "Islamabad has asked India and other countries to postpone the SAFTA talks to late August."

He, however, did not give any reason for the postponement.

Officials of the SAARC countries were scheduled to meet in Kathmandu from July 18 to 21 to hold crucial talks on the fifth and final round of talks on the implementation of SAFTA.

Khan said, "We are committed to SAFTA and we are committed to negotiations on SAFTA. Four negotiations have taken place in the past and we are looking forward to take part in the fifth round. If South Asia moves towards Free Trade Area, this would be a big positive development."

While there was no official explanation for the postponement, it is believed that Pakistan sought deferment because India made it clear that its stand to attend the next SAARC summit would depend on Pakistan granting most favoured nation (MFN) status and necessary trade concessions to India under SAFTA process.

Pakistan has only so far granted 78 items for preferential tariffs to India under the SAFTA process, while New Delhi has already granted MFN to Pakistan.

PTI