Indo-Pak business chamber to meet in Islamabad

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Indo-Pak business chamber to meet in Islamabad

NEW DELHI: A 25-member delegation of Indian businessmen will travel

to Pakistan later this month to discuss means of improving bilateral

trade despite the diplomatic standoff between the two countries.

 

Members of the India Pakistan Chamber of Commerce and Industry

(IPCCI), which was established two years ago in New Delhi by

businessmen of both countries, will visit Islamabad on May 21 and 22

to discuss with their Pakistani counterparts easier movement of goods

across the border in an attempt to reduce the volume of unofficial

trade between the two countries which currently is estimated at over

a billion dollars.

 

"Once the meeting takes place, lot of issues will come up for

discussions with an open mind," A S Kaliwal, former president of the

Federation of Indian Chamber of Commerce and Industry (FICCI) and

vice-president of the SAARC (South Asian Association for Regional

Cooperation) Chamber of Commerce and Industry, said.

 

Coinciding with the SAARC chamber meeting in Islamabad on the same

day, the Indo-Pak talks will "focus on movement of goods (physical)

and easy movement of goods or paperwork," said Kasliwal, who will be

part of the delegation led by FICCI president Chirayu Amin.

 

Though restrictions on trade, policy implementation and uncertain

political situation have affected official trade between India and

Pakistan for long, particularly since the Kargil border conflict, it

is estimated that the unofficial trade between the two countries is

around $1 billion, which is more than five times the official trade

of $150 million between the two countries. If the actual value of

Indian machinery and equipment, imported via third countries and used

in Pakistan is taken into account, the value of unofficial trade

would be much higher, according to studies conducted by the Karachi

Chambers of Commerce and Industry and FICCI.

 

According to official trade statistics available for 1999-2000,

India's imports from Pakistan were worth Rs 2.96 billion ($64.51

million), while its exports to Pakistan were to the tune of Rs.4.05

billion ($87.02 million).

 

The IPCCI was set up in 1999 following Prime Minister Atal Bihari

Vajpayee's historic bus ride to Pakistan. "The talks will also deal

with normal differences experienced in the quality, delivery and

quantity of products. These issues have to be dealt with for

maintaining the credibility of business relations," Kasliwal said.

 

On whether any specific trade issues related to import of sugar by

Pakistan, which was subsequently stopped ostensibly on the issue of

quality, Kasliwal was non-committal. "A lot of issues are expected to

be discussed with an open mind. Both the countries have deep

historical and cultural ties. The talks will dwell on trade between

the two countries, the informal trade and trade via third countries."

 

The SAARC chamber meeting in Islamabad would look into ways of

deepening cooperation with ASEAN (Association of South-East Asian

Nations) countries while improving the trade movement within the

seven-member SAARC towards realisation of a South Asia Free Trade

Area.

 

Besides trade, the SAARC member countries would also look into issues

like "generation and transfer of power from Nepal to India.

Similarly, export of gas from Bangladesh and surplus power from

Pakistan would also be taken up," said Kasliwal.

 

On the sideline of the two major forums, Kasliwal does not rule out

one-on-one meetings between businessmen to explore new trade

opportunities.

 

Many Pakistani companies are keen to tie up with Indian companies for

technology transfer, according to Indian businessmen. But more

collaborative ventures can only come with better political

understanding between the two countries whose current ties are best

described as starchy. (IANS)