ISLAMABAD, March 15: Indian High Commissioner, Shivshankar Menon has asked Pakistan to accord MFN status to India which he believed was necessary for expanding cooperation and trade between the two countries.

"Islamabad's move to a negative list from the current positive list system, if that were to happen, I am sure that our existing complimentaries will create several opportunities for businessmen from both the countries," he remarked.

Speaking at the Islamabad Chamber of Commerce and Industry (ICCI) here on Monday on 'Pak-India Trade: Its Present and Future', the Indian envoy said that opening of direct bilateral trade on MFN basis would result in the expansion of the two-way trade to the tune of $6 billion within a year or so.

Answering a question, he said that India did not want to file an appeal in WTO against Islamabad for not granting MFN status to New Delhi. "We want Islamabad to do it without any external pressure," he said.

To another question, he said that Pakistan might not become a member of Bangkok agreement until it accorded MFN status to all member countries including India. He said that granting of MFN status to member countries was the major condition under the agreement.

He said that Pakistan could export raw cotton, hides and skins, edible oil, nuts, metal, precious and semi precious stones to India. While India could export iron ore and pig iron; medical and pharmaceutical products and chemicals to Pakistan.

The envoy said for instance, even in cotton textiles, where we compete for the international market, we could still cooperate. Pakistan produced long fibre cotton that could be spun and woven in India and then be sent back to Pakistan for stitching, he added.

He said that Pakistan could save foreign exchange by importing cheaper medical drugs, textile machinery, tea, chemicals and truck tires from India. "We are opening a separate window for business visas in the High Commission of India in Islamabad," he announced.

Presently, the High Commission issued business visas within three weeks to bonafide Pakistani businessmen who wish to visit India for commercial purposes. He said the framework agreement on Safta could represent a qualitative shift to a short negative list between the two countries. It would certainly be the endeavour of the Indian government to bring Safta into force on January 1, 2006.

He stressed that the present atmosphere of friendship and warmth between the peoples of the two countries can be utilized for transforming the economies for the benefit of the people.

Welcoming the Indian High Commissioner, president, ICCI, Zubair Ahmed Malik said that at present the two-way trade was estimated at $250 million, which he said did not represent the real potential that exists in the two countries. Also, he said, the tensions between the two largest members of Saarc kept hostage the growth potential of the entire South Asia region.

Trade through unofficial channels was estimated at more than $1 billion, which he said, should be converted into official trade as soon as possible. This would also be beneficial for revenue generation in both the countries as well as lowering the cost of goods to the businessmen.