PTI

Indo-Pak trade to cross $1 bn mark in Financial Year 06

JANUARY 13, 2006

NEW DELHI: Trade between India and Pakistan increased 76 per cent in April-November period and is likely to touch $1 bn in 2005-06, according to a study by industry body CII.

However, unofficial trade between the two neighbours has already crossed two billion dollar, CII said in a release.

"Promotion of bilateral trade between India and Pakistan holds immense significance for economic growth and stability in South Asia," CII president Y C Deveshwar said.

Trade in South Asia could become even more important in future if Afghanistan was included in SAARC, he said.

The study conducted by CII and India Development Foundation, in collaboration with the Pakistan-India CEOs Business Forum, highlighted key areas where bilateral trade could be developed and trade links be established.

The study said economic benefits of liberalising trade clearly outweighed costs and the two countries could together develop strong manufacturing bases, as both have large pools of managerial workforce.

However, one of the major impediments for increased bilateral trade is the lack of data about the trade and economic policies in the respective countries, it said.

Pakistan has lifted ban on imports from India on a number of commodities like sugar and onions which demonstrated that a conducive environment for business is being created for promoting trade. The two countries have also agreed to allow more commodities for trade through the Wagah-Attari land route on a permanent basis, it noted.

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