SME Times News Bureau | 30 Nov, 2012
India Thursday told Pakistan both countries need to enhance
economic engagement through setting up of bank branches in either's territory
and opening up of more trade routes.
"Let both the countries quickly establish two bank branches first. We may
also look at the possibility of expanding and bringing in some private sector
banks," Commerce and Industry Minister Anand Sharma told a business
delegation from Pakistan headed by Ali S. Habib.
He said India is keen to open more trade routes between the countries to boost
bilateral commerce.
"We are keen on Khokhrapar-Munabao...In our state of Punjab, they want
opening up of more border points and also in Rajasthan. I believe there is a
similar desire from the Pakistan side so that other states of Pakistan are also
connected," Sharma said.
Sharma emphasised the early operationalisation of visa regime and requested the
delegation to convey that Pakistan should finish the process as early as
possible.
India and Pakistan signed a new visa agreement on Sep 8 in Islamabad. Once
implemented, the agreement will lead to liberalising of the bilateral visa
regime and introduction of a number of measures aimed at easing travel,
including visits for business purposes.
"The new visa Agreement has still not come into force. Pakistan needs to
indicate its readiness to bring into force the new visa agreement. We are ready
to do so," Sharma told the delegation.
Sharma said that both countries need to continue moving forward towards a
non-discriminatory trade regime.
"Pakistan government has taken some steps to move towards full
normalisation of trade relations with India by making the transition from a
'Positive list' to a 'Negative list' for imports from India. This process must
be taken to its logical end by phasing out the negative list and eventually
according MFN status to India."
On foreign direct investment, the minister asked the Pakistan business leaders
to seek assistance from 'Invest India' - a vehicle to guide investments into
the country.
The 11-member business delegation is here on a three-day visit. Habib said
tremendous opportunities existed for business communities from both the
countries.
"In so many sectors we can cooperate. India produces all kinds of raw
materials and products that Pakistan is importing. Pakistan is very strong in
textiles," he said.
He said there is a need to focus on issues like logistics, transportation,
better visa regime and more points for flow of goods between the countries.
The bilateral trade between the two countries currently stood at $ 2.7 billion.
The members of the delegation briefed the minister regarding the issues being
faced by them in their business transactions with India.