ISLAMABAD, March 9: Pakistan and Japan will have to remove all roadblocks and impediments, which are hampering the existing relations particularly the smooth flow of trade between the two countries.

This was stated by Commerce Minister Humayun Akhtar Khan at the inaugural session of Pakistan-Japan Joint Business-Government Dialogue started here on Wednesday. "I would particularly refer to re-negotiations of agreement on double taxation, which was singed in 1959 and needs a thorough review," the minister said

The minister asked the participants of the dialogue to discuss other issues like investment in infrastructure, transfer of technology in the automobile industry, development of industrial standards for quality control, facilitation of visa and assistance in human resource development.

Besides senior Pakistanis officials, around 30 representatives of big Japanese business as well as senior official of the ministry of economy, trade and industry, Akihiko Yamamoto participated in the dialogue.

Mr Khan said that the initiative of joint business-government dialogue was an excellent idea. The government could only provide policy framework and create the right ecology for business to develop the economic and commercial ties, however, could only strengthen, when the businessmen get together and explore the possibilities of mutual benefits.

The government functionaries and the businessmen together would create synergies for closer bilateral commercial and economic ties. In the bilateral talks, the Prime Minister of Japan suggested that both the countries should start bilateral economic dialogue including discussion on the resumption of the yen loans.

Although, a number of bilateral meetings took place since then, the visit of Minister for Commerce, Economy, Trade and Industries of Japan in January 2005, has ushered a new era of bilateral economic and commercial relations. The resumption of yen loan will foster this relationship further, the minister added.

"Although our bilateral trade is around $1.5 billion, it is well below our potential. The balance of trade is also heavily tilted in favour of Japan. I would urge the participants of this dialogue to find ways in improving this situation," he said.

Pakistan is striving to create opportunities of trade and spur commercial activities to create new investments in Pakistan. Pakistan's trade regime has been considered as the best in the South Asia by independent commentators including the World Bank and IMF.

The minister said that trade diplomacy initiatives have also been launched to secure and enhance our trade with European Union and the United States. "We are also looking towards Asean and Africa to initiate similar initiatives. We also intend to take positive steps for an enhanced economic and trade cooperation with Japan," the minister said.