NEW DELHI, July 7: India’s Foreign Minister Yashwant Sinha on Monday suggested forming a South Asian union to promote economic and political cooperation in the region, as business leaders from India and Pakistan considered ways to step up trade.

“If other regions could achieve this kind of union despite political, social and economic differences, there is no reason why we should deprive our people of this opportunity,” Yashwant Sinha said.

“We are ready to start discussion on this (union) from tomorrow, if other countries are also ready for this,” he said.

Sinha has made similar offers before, with a view to a South Asian union that would aim not only at free trade but easier travel and closer political cooperation between India, Pakistan, Bangladesh, Sri Lanka, Nepal, Bhutan and the Maldives.

Sinha’s offer came at a business conference attended by Indians and more than 100 Pakistanis who said they were optimistic about the latest peace efforts by the two countries to end their dispute over Kashmir .

Pakistani delegates said, however, that they would first like to see the Indian government ease visa rules and restore transport and air services. The Pakistani businessmen also want both governments to remove several barriers on trade and services.

“If we are really interested in promoting trade and economic cooperation within South Asia, particularly between India and Pakistan, we will have to work to strengthen and expand existing communication links,” said Aziz Ahmad Khan, Pakistan’s ambassador to India.

“As of today, the situation is not very encouraging,” Khan said, adding, “the majority of the businessmen sitting in this room have travelled via Dubai, spending 18 to 30 hours in transit to attend this conference.”

Participants at the two-day conference said the latest peace process was likely to succeed, paving the way for increased economic and business exchanges between the two countries where some 1.2 billion people live.

“We feel, this time it is going to be different. There will not be a rollback in the peace process, because of its backing from international leaders ... or international pressure,” said Habib Ullah, a Pakistani textile manufacturer.

Senator Ilyas Ahmed Bilour, leader of Pakistan trade delegation currently visiting India, and new President of India-Pakistan Chamber of Commerce and Industry (IPCCI) said both sides had vast trade potential, stressing the need to exploit it for mutual benefits.

Speaking at the third meeting of IPCCI, Senator Bilour said, “our delegation has come to India to work out modalities for deepening bilateral trade between India and Pakistan.—APP