India keen to put trade ties on track

India today said it favoured the immediate implementation of the early harvest scheme with Pakistan. The two countries had yesterday announced the setting up of a joint study group on economic cooperation.

"We discussed the possibility of economic cooperation and suggested that the first part of the early harvest scheme under the agreement could be started immediately," Commerce and Industry Minister Kamal Nath told reporters here after meeting Pakistan Prime Minister Shaukat Aziz.

Nath said the commerce secretary-level joint study group would start functioning on both sides from next month. It will look into all issues related to trade like the most-favoured nation (MFN) status, besides identifying other areas of cooperation in goods and services.

The decision to set up a joint study group on economic cooperation was taken following the meeting of Nath with Humayun Akhtar Khan, his Pakistan counterpart in Islamabad, and Pakistan President Pervez Musharraf.

Nath said Aziz told him that trade talks would be within the framework of the ongoing composite dialogue process and those areas would be identified in which cooperation could benefit both countries.

Trade between the two countries is pegged at $300 million as against an estimated potential of $200 billion, he said.

Nath, who was in Islamabad to attend the Fourth Meeting of the Saarc Commerce Ministers, had called on Musharraf at his residence in Rawalpindi last evening.

Nath briefed the President about his interaction with the Indo-Pak Chamber of Commerce in Islamabad and the very high expectations that the businessmen of Pakistan had on the trade and economic front.