Indo-Pakistan bilateral trade may touch $10 bn by 2015: PHD chamber

NEW DELHI: Bilateral commerce between India and Pakistan may touch USD 10 billion by 2015, if trade and investment barriers are removed, PHD chamber has said.

In 2010-11, the bilateral trade between the two countries stood at USD 2.7 billion, with the trade balance heavily in the favour of India, it said.

"The potential gains from the increased bilateral co- operation between India and Pakistan are immense. Constraints on issuing of visas, cumbersome payments and customs procedures limit the scope for trade," PHD Chamber President Sandip Somany said.

India's top export items to Pakistan include sugar, cotton, man-made filaments and chemicals, while its imports comprise mineral fuels and organic chemicals.

The chamber, further said, Pakistan has not yet reciprocated Most Favoured Nation (MFN) status for India and maintains a narrow list of tradable items that India may export to Pakistan.

Full liberalisation of trade by placing items on a 'negative' list rather than having only a 'positive' list would boost the bilateral trade, it said.

At present, the 'positive list' agreed upon by the two sides contains over 1,900 items that can be traded. The 'negative list' would include items that cannot be traded.

The two sides have been making efforts to strengthen the economic relations.

During the recent visit of Commerce and Industry Minister Anand Sharma to Pakistan, Islamabad has assured New Delhi to grant MFN status by end of this year.