By IANS
New Delhi : India and Pakistan Wednesday decided to open bank branches in each other's country and set an ambitious trade target of $10 billion by 2010.
The two countries also made a deal under which Pakistan will export cement to India and India will export tea in return.
Both the countries have agreed to open branches of two banks from each country by Dec 31 this year and within six months of the receipt of applications.
While two of India's nationalised banks – State Bank of India and Bank of India – would open branches there, from Pakistan it would be United Bank and National Bank.
Pakistan has also agreed to export cement to India once the latter completes all statutory certification related formalities on a fast track. The Indian side has also agreed.
"Both sides agreed to finalise the processing of the applications for the two bank branches in either country within six months of the receipt of applications or by Dec 31 or whichever is earlier," said a joint statement at the end of the two-day commerce secretary level talks by both the countries.
The Pakistani delegation was led by its Commerce Secretary Syed Asif Shah and included Aizaz Ahmed Choudhury, director general (South Asia and SAARC) and Shahid Hussain Raja, additional secretary.
"Trade between India and Pakistan is increasing and both sides have agreed to leverage the bilateral trade relation between both the countries to the level of $10 billion by 2010 from the current level of $1.6 billion," Pillai, who was leading the Indian side, told reporters here while concluding the two-day bilateral meeting.
"The target of $10 billion is definitely achievable and both the sides have agreed that joint secretaries from both countries would meet to review the implementation of the joint statement," said Choudhury.
On the issue of the Super Basmati Rice which was earlier raised by Pakistan, the statement said: "The Pakistan side raised the issue of notification issued by India declaring Super Basmati Rice as an approved variety for export. India agreed to look into this issue."
The India delegation has also handed over a list of 484 tariff lines for inclusion in the positive list of items importable from India, which Pakistan has agreed to examine in consultation with the stakeholders.
"India has also invited Pakistan to identify 20 products of its export interest so that India could inform Pakistan about the detailed import regime on these products with as view to facilitating their import to India," the statement said.
The Indian side would also be forming a Task Force comprising representatives from various ministries to address the issues of non-tariff barriers and para-tariffs.
"The Indian side has also made a presentation on the state of development of integrated check-post planned to be developed at Wagah/Attari broder at the India side," the statement said