Current India - Pakistan visa policy a hurdle to economic ties: PHDCCI

NEW DELHI: A day ahead of the home secretary- level talks in Islamabad on visa issue, industry body PHDCCI today said the current visa policy of India and Pakistan acts as a "major impediment" to growth of bilateral economic ties.

A 12-member delegation, led by Home Secretary R K Singh, today left for Pakistan for the home secretary-level talks beginning tomorrow where a relaxed visa regime is expected to be inked.

"The current visa policy of issuing three city visas instead of a multiple city visa has acted as a major impediment to the growth of business ties in both the countries," the chamber said in a statement.

It said the elimination of the compulsory police reporting for visitors would be a major step in building confidence among the two nations.

"There is a huge potential for increased bilateral cooperation between both the nations as currently Pakistan only shares 0.43 per cent of India's total trade. The majority of the trade between India and Pakistan is at present routed through other countries," it added.

It also said that matters like issuing of multiple-entry and police reporting-free visas for businessmen would be raised in the meeting.

The new visa regime will also exempt elderly people from police reporting, it added.

"It is necessary to continue to build on the bilateral trade and business to business contacts between India and Pakistan, to identify focus areas of mutual interest and benefit for trade and commerce by facilitating interaction on a continuous basis," PHDCCI said.

Further, it said there is also a need to improve communication connectivity as it would facilitate exchange of business contacts.

The bilateral trade between India and Pakistan stood at $ 2.7 billion in 2010-11.