KARACHI, July 8: The India-Pakistan Chamber of Commerce and Industry on Tuesday signed a document of joint recommendations for the promotion of bilateral trade between the two countries.

India-Pakistan Chamber of Commerce and Industry (IPCCI) president Senator Ilyas Ahmed Bilour and its co-president and Federation of Indian Chamber of Commerce and Industry president Dr A.C. Muthiah signed the joint recommendations in New Delhi at the conclusion of two-day meeting of the IPCCI.

A copy of the document was also handed over to Indian Prime Minister Atal Bihari Vajpayee by Ilyas Bilour and Dr Muthiah at PM’s residence on Tuesday, says an FPCCI press release.

According to the joint recommendations, members of the IPCCI, promoted by the two apex bodies of India and Pakistan — FICCI and FPCCI — held their third annual meeting on July 7 at the Federation House, New Delhi, and unanimously resolved as follows:

The IPCCI has a significant role in the promotion of bilateral trade of goods and services between India and Pakistan. Given facilitating policies and environment — bilateral trade can be increased up to $6 billion per annum in the short run as against the meagre official trade of around $200 million per annum and unofficial trade of $1.5 to $2 billion.

India and Pakistan have complementarities in exchange of a large number of goods and services due to which both the countries can profit substantially if bilateral trade is promoted and facilitated.

Though the current official trade between the two countries is minimal, informal and unofficial trade is estimated around 10 times thereof. As such, there is justification for regularization of the natural bilateral trade requirements, which will result in increase in total trade, reduction in transportation costs and time, increase in government revenue and enhancement of consumer welfare.

The following major factors for promotion of trade and commerce were identified:

Barring goods and services notified in the negative list, all other items should be allowed for bilateral trade for enlargement of scope of goods and services traded.

Efficient and cost-effective transportation and communication is a pre-requisite for promotion of trade and commerce and movement of goods, services and people. There is an immediate need for restoration/introduction of rail, air, sea and road links between India and Pakistan. Good transportation and communication facility between the two countries will enormously decrease cost and time of transfer of goods, services and people from both the countries to the other.

Visas to businessmen of India and Pakistan should be allowed freely for visit to the respective countries on the recommendations of FPCCI and FICCI. The visas to businessmen should be valid for at least one year and should be valid for all cities without the requirement of police reporting and the condition of same point of entry and exit should waived.

Regional trade blocs are an effective tool for enhancing competitive strength in sale of goods and services globally. As the main players of Saarc, India and Pakistan have a major responsibility for making Saarc effective in achieving its objectives of promoting trade and commerce within member states. Saarc Free Trade Agreement awaiting to be signed since 2001 should be inked and implemented at the earliest.