By IANS,
Islamabad : India’s neighbours should increase bilateral trade with it without any fear of dominance or disadvantage, India’s envoy to Pakistan said Monday, noting the annual trade between India and Pakistan can increase five-fold.
Addressing businessmen at the Islamabad Chamber of Commerce and Industry (ICCI), High Commissioner Sharat Sabharwal said a panel of Pakistani economists has already assessed that annual bilateral trade between India and Pakistan can grow from the current $2 billion to $10 billion.
Trade between India and Pakistan offers many advantages like short distances, reduced cost of transportation and low prices, Online news agency quoted him as saying.
As the fastest growing economy of the region, India offers great economic benefits to its neighbours and they should promote trade with India without any fear of dominance or disadvantage, Sabharwal said.
He said India has not made any Pakistan-specific trade regulations, and its regulations including technical standard certifications, standard & quality, labour regulations etc. are same for all its trading partners.
Noting India, during the recent South Asian Association for Regional Cooperation (SAARC) summit at Bhutan, reiterated its intention to implement the South Asian Free Trade Agreement (SAFTA) in letter and spirit to accelerate intra-regional trade and to remove all non-tariff and para-tariff trade barriers.
SAFTA doesn’t provide for positive list approach and Pakistan should move from positive list to negative list approach to promote trade with India, he said.
The envoy noted said governments are only responsible for creating a conducive environment and it is up to the entrepreneurs to create win-win situations. He was confident that the businessmen of Pakistan and India have the potential to create such a situation.
In his welcome address, ICCI president Zahid Maqbool said that both countries have trade potential of more than US$ 11 billion and strenuous efforts should be made to exploit untapped areas of cooperation.
He said there are good prospects of enhancing two-way trade in ready made garments, particularly ethnic garments such as shawls, shalwar kameez and saris. He said trade in agricultural commodities could bridge the short term supply shortages caused due to seasonal crops fluctuations.
Noting that $4-5 billion unofficial trade is taking place through a third countries such as Dubai and Hong Kong or through smuggling, he said steps should be taken to route it through regular channels.
Maqbool suggested both countries should allow their private sectors to make investments and enter into joint ventures in each other’s country, particularly in areas of energy, agriculture and software industry.
He said ICCI will take a delegation to India in September this year to explore more areas of mutual cooperation.