In a major landmark for economic ties between India and Pakistan, Islamabad on Thursday said it was willing to permit trade across the line of control (LoC) in Jammu and Kashmir for a limited basket of goods, without imposition of any duty.
Both the countries also expressed openness on considering investments in IT, food processing, sports goods and textiles. Currently, India does not allow investments from Pakistan, and vice versa.
Pakistan commerce secretary Syed Asif Shah indicated his country?s willingness on trade during his talks with minister of state for commerce Jairam Ramesh. The two countries have set a target of $10 billion trade by 2010.
?During the discussion, I raised this issue of Pakistan?s position on allowing trade across LoC in Jammu & Kashmir. He (Shah) then replied that Pakistan was in favour of free trade across LoC on a basket of goods agreed to by both the countries,? Ramesh told reporters after the meeting.
He said the model could be similar to Nathu la in Sikkim, used for India-China trade and that through Moreh, for India-Myanmar trade. Border trade, first mooted by Prime Minister Manmohan Singh 6-7 months ago, could be a reality this year itself if the infrastructure on both sides saw an improvement, Ramesh said. Following the earthquake in 2005, infrastructure on both the sides was badly damaged.
Ramesh said Nasscom would soon hold discussions with Pakistan on IT investments. ?We will soon have an investment meet in Pakistan, where we will look at joint IT projects and the setting up of a joint development centre,? he said.