Indo-Pak trade may cross $12bn by 2015: Assocham

The bilateral trade between India and Pakistan may reach over USD 12 billion by 2015 if the neighbouring country accords New Delhi the most favoured nation (MFN) status, industry body Assocham said today. The chamber said that export potential exists for India in commodities including sugar, cotton, coffee, spices, tea, petroleum products, iron and steel, pharmaceuticals and fertilizers. Pakistan can export items such as mineral fuels, chemicals and woollen products to India, it said.

"Mutual trade promotion initiatives between the two neighbours can help boost the bilateral trade by almost five times from USD 2.7 billion realised in 2010-11," it added. It said that the two sides may also focus on institutional agreements for developing transportation through sea routes, establishing state-of-the-art integrated check posts with quick customs clearance and easing visa requirements, Assocham Secretary General D S Rawat said. Besides, both the countries should work on reducing tariff and non-tariff barriers to boost trade. "MFN status to India will also help legalise informal and illegal trade worth several millions of dollars through Indo-Pak border,"

Assocham said. The chamber said that Indian chemical industry may increase its share of exports to Pakistan to about 20 per cent if India gets the MFN status. India can help meet demands of the automotive market in Pakistan by exporting components and spare parts at a lower price, it said adding trade of electricity might open a new era of regional co-operation between the neighbours as India can export about 500 mega watts of electricity. Pakistan has missed the deadline of according MFN status to India. Elimination of negative list would automatically extend the MFN status to New Delhi.