Banks, Multiple-Entry Visas To Facilitate Trade Between India, Pakistan.

"The Reserve Bank of India and the State Bank of Pakistan (the central banks of two countries) have already discussed this matter and will take the next step," India's Commerce and Industry Minister Anand Sharma told reporters on the sidelines of a conference here.

Sharma said the central banks of the two countries would soon decide on the place and timeframe of opening branches of commercial banks.

"When we are going to encourage trade and industrialisation, the enabling infrastructure is not only the integrated check posts and custom stations, banks are also essential. That's why the central banks of two countries are in dialogue," he added.

Pakistan's Commerce Minister Muhammad Amin Fahim said the governments of both countries have directed their respective central banks to facilitate the opening of commercial bank branches on a reciprocal basis.

"Both countries are now poised to open bank branches and land routes," Fahim said at a conference organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) here.

Senior Reserve Bank of India officials are likely to visit Pakistan to discuss the modalities for opening bank branches.

Fahim, who is on a five-day official visit to India, said the two countries have taken a number of measures to facilitate the flow of trade and investments.

"The volume of trade is not satisfactory. We have to work hard to reach $6 billion in three years, but there is also scope that we can double the value in six years," he said.

"Bilateral trade between India and Pakistan is expected to flourish and hopefully all non-tariff barriers shall soon be removed. These measures will end a positive signal to the business communities about the sincere intention of the two governments," he added.

The current trade volume between the two countries is $2.7 billion.

Pakistan Commerce Secretary Zafar Mahmood said he would be visiting New Delhi in November to work towards normalizing trade relations between the two neighbours.

"The atmosphere of fear and apprehension has reduced considerably and business persons in both countries have started to believe that governments are committed to normalisation of trade relations," Fahim said.

Continuing trade diplomacy, Fahim also said businessmen of both countries would soon be able to visit multiple times every year as both governments had resolved to ease trade barriers.

"The reason to come here was to improve trade relations between both countries. The few issues that I want to mention like the visa issue... will be resolved," Fahim said while addressing a business summit organized by the Confederation of Indian Industry.

"There will soon be a visa for multiple entries for one year," he added.

The new business visa regime would allow multiple entries and could be valid for a period up to one year. The two countries have agreed to conclude issue of liberalising business visas by this year.

The business communities of both the countries have been demanding liberalization of the visa regime and the move is likely to come as a big relief for them.

Source : news.in.msn.com