$5bn Indo-Pak trade seen in 2 yrs

Industry bodies in both India and Pakistan are optimistic that the trade between the two nations will touch the $5 billion mark in the next two years, following a thaw in political relations and the signing of the South Asian Free Trade Area (SAFTA).

Pakistani Senator Ilyas Ahmed Bilour, also the president of the Indo-Pakistan Chambers of Commerce and Industry (IPCCI), said building trust between the two countries was essential and businessmen should lead politicians in that effort.

"Trade will receive a further boost with Pakistan set to grant India the most favoured nation (MFN) status and I expect the visa restrictions too to be relaxed in the coming months," he said. Bilour's statements are being viewed in a positive manner as he also represents the Awami National Party besides being a successful businessman.

The senator also announced a 'Made in Pakistan' exhibition to be held in New Delhi from March 3 to 11, in which more than 120 Pakistani entrepreneurs are expected to participate.

A seminar on SAFTA is also in the offing. Consequently, the Federation of Indian chambers of commerce and industry (FICCI) will lead a delegation of Indian businessmen to Pakistan in September.

"The unofficial trade between Indian and Pakistan, which stands at $1.8 billion will become official. And given the enthusiasm of the industries in both the countries, we are confident of achieving the trade target of $5 billion in the next few years," said Amit Mitra, chairman, FICCI.

Currently, despite the size of Pakistan's economy being much larger than the other SAARC countries, the official trade between India and Pakistan stands at $262 million, whereas India's trade with Srilanka, Nepal and Bangladesh adds up to more than nearly $3 billion.

While plastics, rubber products, and chemicals comprise India's principal exports to Pakistan, it imports fruits and cotton yarn from its neighbouring country.