Want banks from both nations to open their branches.
Business and industry leaders from India and Pakistan on Tuesday said the two countries would look up to the 21st century as one of trade — and not of wars.
Therefore, the CEOs from both the neighbouring nations, at a conclave here, emphasised on the need for a liberal visa regime, signing of investment promotion and protection agreement between India and Pakistan, and allowing banks from both countries to open their branches.
At the event organised by Federation of Indian Chambers of Commerce and Industry (Ficci) in the presence of visiting Pakistani Commerce Minister Makhdoom Muhammad Amin Fahin, India Inc was represented by officials of Reliance, Tata, Aditya Birla Group, Essar and RPG.
Ficci President Harsh C Mariwala, who initiated an interactive session, said Pakistan has maintained a positive list of only 1,938 items which India can officially export to that country. On the other hand, India does not impose such restriction on imports from Pakistan. “We have granted an MFN (most favoured nation) status to Pakistan, whereas Pakistan is yet to reciprocate the Indian goodwill gesture.”
Further, the formal bilateral trade has increased to $1.8 billion in 2009-10 from $616 million. However, he lamented that lack of direct trade has resulted in a surge of informal trade, including third-country trade between India and Pakistan. The size of informal trade underlines the potential of bilateral trade between the two countries, Mariwala added.
On its part, Pakistan said both the countries would have to step up efforts to increase formal trade instead of informal trade. Outside the event, Mirza Ikhtiar Baig, Pakistan’s federal advisor of textile, told Business Standard that Islamabad was expecting to finalise its according MFN status to India during an upcoming meeting of the commerce ministers of both countries. “Pakistan is prepared to grant this, while India will support Pakistan at the European Union (EU) in textile trade,” he added.
Baig admitted business and industry leaders from both countries made a strong pitch for streamlining of the visa regime. A Ficci executive said industry leaders pleaded for setting up of an institutional mechanism that would guarantee the safety of each other’s investments. “This was necessary as there is lack of investment promotion and protection agreement between India and Pakistan. That remains a stumbling block,” he added.
The official further said industry and business leaders had suggested that banks from both the countries be allowed to open up their branches and decision in this regard be taken soon. “State Bank of India and Bank of India have already said they are keen to open branches in Pakistan. Banks in Pakistan are making similar plans,” he added.
Moreover, industry leaders admittedthere was a general lack of awareness about each other’s competencies and business capabilities. They suggested organising trade fairs and establishing web portals to further bilateral trade and business relations.
Earlier, minister Fahin said the private sector in India and Pakistan would continue play a positive and active role in shaping the government policy.
It was the time the regional trading block in South Asia strengthened, he added in his address.
