Commerce minister's visit to boost trade with Pakistan

New Delhi: En route to becoming the first Indian trade minister to visit Pakistan in 30 years, Commerce Minister Anand Sharma yesterday said the neighbouring country had indicated its desire to strengthen trade ties such as increasing the number of goods that could be imported from the South Asian economic giant.

Sharma said Pakistan had said that it would move its trade policy towards India from the positive list-based regime to a negative list one, thus enabling more Indian goods access to its market.

"There is every reason for us to believe that there is an expressed wish and desire on the part of Pakistan to move to the [negative list] regime. This will deepen and diversify trade and enhance economic engagement," Sharma told reporters.

Islamabad allows only 1,946 items of import from India, whereas New Delhi permits imports from Pakistan of all but a few items on the Indian negative list.

"This is the understanding which has been given to us when the Pakistani Commerce Secretary came again in November. This will be a major boost to two-way trade. We expect trade to double in the next three-four years from the current level of $2.7 billion [Dh10 billion]," he added.

India Show

Sharma, along with some 150 businessmen and industry representatives, will lead the largest Indian trade delegation to Pakistan, and will take part in a series of trade promotion events, including an India Show in Lahore, over four days starting today.

Bilateral trade between India and Pakistan was recorded at $2.7 billion in 2010-11.

Trade balance is heavily in favour of India with its exports at $2.3 billion and imports from Pakistan at $332 million. An improvement in ties between the two countries could result in bilateral trade growing to $10 billion by 2015, according to some estimates.

The delegation will have a series of meetings with business leaders and government officials of Pakistan, including Prime Minister Yousuf Raza Gilani and Commerce Minister Makhdoom Ameen Fahim.

When asked about the easing of visa norms for business travellers between the two countries, Sharma said he would like to finalise the details of a multiple-entry visa regime as soon as possible.

"Both governments have talked. The drafts have been exchanged. We are in favour of an early conclusion of the signing of an agreement for a multiple-entry visa regime to facilitate the movement of business leaders of India and Pakistan as part of the process of normalisation."

The minister also said he, along with his Pakistani counterpart, would review the progress of the Integrated Check Post (ICP) at Attari-Wagah border this morning.

• $2.7b: bilateral trade recorded in 2010-11
• $10b:growth in trade in 2015 as ties improve