India, Pak commerce ministers

meet, favour resuming dialogue KT NEWS SERVICE NEW DELHI: Pakistan on Saturday said its traders were looking at India for opportunities and called for resumption of composite dialogue process so that the region can realise its full trade potential.

Visiting Pakistan Commerce Secretary Suleman Gani here met his Indian counterpart Rahul Khullar the first such meeting after last year Mumbai attacks that nosedived relations.

Both sides discussed trade and commerce issues, but linked the movement of issues with the overall improvement of political improvement.

Ghani said both countries had decided to present a common stand at the WTO as well as on environmental issues coming up at Copenhagen summit in December.

Later Interacting with Indian corporate captains at two separate meetings, Pakistan Secretary said trade between India and Pakistan can go up to $10 billion a year in 5-6 years once the political situation improves in the region.

"If everything goes right then once we resume dialogue, it should not take more than 5-6 years for the trade between two countries to reach $10 billion from the current $2 billion," Ghani said.

He said prior to 1947, geographical areas now called Pakistan had 80 per cent trade with India which has now shrunk to mere 15 per cent.

Ghani said Pakistan has opened to China and both countries will peak shortly.

“Our traders are looking at India as big market full of opportunities,” he said.

Pakistan Secretary called to increase stakes in trade and commerce.

“Once you take trade to a peak.

It becomes a tripping point.

Every other thing then will become subservient to business interests,” he added.

Referring to relations between France and UK, who fought bitter wars and still fight on soccer fields, Ghani said they have strong trade ties.

He agreed with Indian corporate that there was need to add more items like services, coal, and automobile in the trade basket.

He called for removal of barriers and negative lists so that traders can trade anything they like.

He said since 52 per cent of Pakistan’s GDP accounts services sector, he agreed with an Indian business captain to open up this sector for India.

"It is about time we set up strong targets for trade between India and Pakistan," he said.

"We have to be realistic and understand the ground realities.

Commerce and trade can improve once the overall environment improves.

We want to take a quantum leap forward.

Once volumes go up things will fall in place." He said Pakistan was "committed to promoting better relationships" between trade bodies, and is confident that the problems will begin to resolve quickly once the composite dialogue between the two countries is back on track.

Replying to a query by an Indian businessman on pricing of Basmati rice, Ghani wanted the exporters from both the countries to exchange notes with the help of the associations.

“The system will definitely help” he added.

Both India and Pakistan are exporters of Basmati rice but the prices vary.

Opening of trade should be like looking at different markets for exports.

At present the items imported from India into Pakistan are as per a positive list.

Though this is a long list but large numbers of these are never traded.

Indian side wants Pakistan to have only a negative list of items and open all other items for trade between the two countries.

Pakistan Commerce Secretary said that this was definitely worth considering once the composite trade dialogue starts.

Bilateral trade between Pakistan and India will probably fall to US$900 million in the year ending March 31, 2010, compared with $2.2 billion already earned in the fiscal year ending last March 31.