India, Pakistan trade to increase four-fold soon, say exporters.

NEW DELHI: Indian traders can increase exports to Pakistan more than four-fold, with the neighbouring country changing its trade policy to a negative list regime.

Pakistan which allowed just about 2,000 items of imports from India under 'positive list' trade rules, has now thrown open its market for the Indian traders for all but 1209 items in the negative list. A notification was issued by Pakistan yesterday.

Welcoming the decision, Commerce and Industry Minister Anand Sharma said: "This is a part of the roadmap drawn between the two governments for full normalisation of the trade regime".

Pakistan proposes to even phase out the negative list by December 31, 2012, leading to the full normalisation of trade between the countries.

FIEO President M Rafeeque Ahmed said, "the move would increase the Indian exports by more than four folds soon".

Consumers in Pakistan, he said, "will benefit by direct trade with India as it will result in lowering of price for all the products hitherto routed through third countries".

The FIEO chief also demanded expansion of products which can be traded through Wagah Border.

Pakistan allows import of only 137 products like livestock, vegetables and newsprints from the Wagah land border crossing.

The annual trade between the two countries is around USD 3 billion.

Source : economictimes.indiatimes.com