ISLAMABAD, Oct 17: Pakistan and European Free Trade Association (EFTA) have agreed to hold the next round of talks in 2008 on increasing volume of bilateral trade, investment flows and services.

Both sides held the first round of talks at a technical session held recently in Geneva to discuss various proposals for entering a bilateral arrangement for increasing the current volume of trade between Pakistan and the EFTA.

The EFTA comprises Switzerland, Norway, Iceland and Liechtenstein.

The global imports of EFTA are around $180.36 billion and its imports from Pakistan are only $98.45 million.

Secretary of Commerce Syed Asif Shah told Dawn that a major breakthrough was made in the talks to consider various options for increasing Pakistan’s share in total import bill of EFTA.

Mr Shah was heading Pakistani delegation to the meeting. The EFTA side was headed by Chief Negotiator, Ministry of Trade and Industry, Norway Erik Andreas Underland.

He said it was agreed in the meeting to work out details of the items and areas to be considered for duty reduction or cooperation in the proposed talks, which possibly be converted into full-fledged talks on a free trade agreement (FTA).

Pakistan had formally requested for having a treaty with EFTA in a meeting with Swiss Undersecretary of State Ms Monika Rohl Burzl during her visit to Pakistan in February last.

The Swiss government help was also sought in initiation of talks on free trade area.

To a question, Mr Shah agreed that the talks in the first round were not FTA specific, but he hoped that it would be converted into full-fledged talks on FTA with Pakistan.

He said that EFTA was currently negotiating with FTA various countries in the current calendar year.

Both the sides discussed possible areas of cooperation, and agreed to continue deliberations on expanding trade and investment relations in early summer 2008.

These deliberations will address all available trade policy instruments with a view to improving framework conditions and market access for goods, services and investment. Though the word FTA was not mentioned in the minutes of the meeting, all areas considered under a preferential treaty were addressed.

Islamabad’s current level of trade balance is heavily in favour of EFTA countries, and within EFTA, Switzerland is the largest trading partner of Pakistan.