NEW DELHI, Sept 21: Formal trade between India and Pakistan has overtaken informal business for the first time after crossing the $800 million mark in the previous fiscal year, indicating enhanced business relations between the two countries. “It is a positive development and indicative of a growing thaw in relations between the two countries,” said Fazle Abbas Maken, trade minister at the Pakistan High Commission.

According to figures available with the External Affairs Ministry, formal bilateral trade between India and Pakistan was in the order of $476 million in 2003-04. Trade figures were not available for fiscal year 2004-05.

The recent policy initiatives and promotion of land route to promote commercial ties between the two South Asian neighbours have resulted in conversion of informal trade into a formal one, he said at a PHDCCI-organised meeting with business leaders.

This augurs well for both India and Pakistan in terms of revenue generation for the governments and to keep proper accountability to ascertain the level and quantum of bilateral trade between the two countries, he said.

Mr Maken said that Pakistan was committed to promoting business ties with India. An indication to this effect was given when Pakistan placed 770 items on the positive list of goods that could be imported from India, he said.

He underscored the need for updating the shipping protocol and air services agreement between the two countries, saying these agreements, signed in the 1970s, could not meet the current demands and situation arising due to enhanced Indo-Pakistan economic relations.

Mr Maken also stressed on expediting the setting up of the regional trading bloc to meet the rising tide of globalisation on equal footing. —Online