Trade to boost Indo-Pak ties

Allaying fears that Indian goods would flood Pakistani market if the two countries improved economic ties, India has said trade could be an important tool in improving bilateral relations.

Fears that increase in bilateral trade and liberalisation of trade regime under Safta could lead to the Indian domination in the regional market were baseless, Indian Commerce Secretary Deepak Chatterjee said ahead of the Indo-Pak talks on economic and commercial co-operation beginning here on Wednesday.

Chatterjee, who arrived in Pakistan yesterday to attend the talks, told reporters on his arrival at Lahore that an increase in direct trade between the two neighbours would benefit both countries. At present, most of the trade was being conducted through third countries.

"The signing of the Indo-Lanka free-trade agreement has led to a three-time increase in the Sri Lankan exports to India," he said, adding the Safta accord would be of benefit to all Saarc countries. In the Indo-Pak context trade could prove to be an important tool in improving bilateral ties, Chatterjee said.

He said there were no authentic figures available regarding trade through third countries as well as smuggling between the two countries and it needed to be formalised.

He said both countries, which were fighting for their rights in international forums like the World Trade Organisation, could join hands to strengthen their stand.

Meanwhile, top interior ministry officials of India and Pakistan begun two-day talks here on Tuesday on terrorism and drug trafficking.

They will discuss a host of issues, including alleged infrastructure of terrorist camps in Pakistan, extradition of hijackers of Indian Airlines plane in 1999 and the accused wanted in connection with Bombay blasts.

An eight-member Indian delegation at the talks is led by Home Secretary Dhirendra Singh while the Pakistan team is led by Tariq Mahmood. Singh is accompanied by a delegation of officials from the home and external affairs ministries and the narcotics department.

Ahead of the talks Singh, on his arrival here last night, said the parleys being held after a gap of six years would focus on measures to be taken to deal with terrorism and trafficking in drugs. He said the dialogue was for creating goodwill, promoting peace and mutual trust between the two countries.

Singh said he had come with an open mind and hoped his visit to Islamabad would lead to progress in efforts to improve relations between India and Pakistan. "We shall take up all the concerned issues when we sit together at the negotiating table".

Ahead of the talks, Indian officials have stated that issues like extradition of hijackers of Indian Airlines plane in 1999 as well as the accused in the Bombay blasts and assistance being provided to terrorist groups operating from Pakistan-Occupied Kashmir would figure in the talks.