Thaindian News

Islamabad, April 28 (IANS) India and Pakistan Thursday agreed to reduce tariff and non-tariff barriers and form a joint trade promotion body to boost bilateral trade.

“To build confidence, dispel misunderstandings and allay any misapprehensions, it is essential that governments in both countries support business communities in promotion of bilateral trade,” according to a joint statement issued after the 5th round of India-Pakistan talks on commercial and economic cooperation held here.

Indian Commerce Secretary Rahul Khullar and his Pakistan counterpart Zafar Mahmood led the April 27-28 talks aimed at boosting business between the two countries.

During the discussions, both sides agreed that increase in trade and economic engagement would help not only in mutual quest for national development but also contribute to building trust between the two countries.

“To promote trade, both tariff and non-tariff barriers need to be reduced or removed,” the statement said.

The two countries have decided to set up a joint working group on “economic and commercial cooperation and trade promotion”. It will be co-chaired by the joint secretaries of the respective departments of commerce.

According to the joint statement, commerce secretaries of both the countries would meet bi-annually to review the functioning of the joint working group.

Trade talks between the two countries were suspended in the aftermath of the Mumbai terror attacks in November 2008 that left 166 people dead. India-Pakistan ties were considerably strained following the terror attack.

There is potential for bilateral trade to go up to an estimated $6.5 billion from the current $2 billion.