About 70 stalls at the four-day festival, 'Aman ke Saat Rang', are exhibiting stonework, footwear, embroidery, jewellery and a variety of dishes.
The fair was inaugurated by Bihar Industries Minister Shyam Rajak said that it is a big medium to "bring people closer".
"This is the land of Gautam Buddha and Sufi saint Makhdoom Yahya Maneri, who aimed at fostering peace among the mankind. This fair is a big medium to bring people closer to each other, and will help improve Indo-Pakistan ties by dispelling wrong notions about each other," he said.
Rajak added that the occasion provides an opportunity to see the famous crafts which "we used to read and hear about" and also showcase "the expertise of artists of Bihar in crafts like Mithila paintings, Tikuli art to the Pakistanis who have come to Patna".
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The minister also assured the Pakistani delegation participating in the fair that the state government would ensure "they do not face any problem during their stay here" as it believes in "atithi devo bhava" (Guest is God).
The fair is an initiative of PHD Chamber of Commerce and Industry, their Pakistani counterpart in association with Bihar government.