KARACHI, Dec 8: As politics plays itself on either side of Pakistan-India border, the business in both the countries drifts to sidelines to wait for normalisation of ties between the South Asian neighbours before deciding over the future of their plans of economic collaboration in areas of common interest.

An Indian newspaper reported on Monday that Dehli has decided to put trade talks with Islamabad on hold after the Mumbai incident.

“Trade officials have put off a visit to Pakistan where they were to discuss increasing the number of border trade points and the number of products to be traded. Also being postponed is a trip by Planning Commission deputy chairman Montek Singh Ahluwalia, who was to hold talks on helping Pakistan build a metro network and renewable energy systems,” ‘The Telegraph’ reported.

The officials in the economic ministries in Islamabad were not available for comments because of Eid holidays. Our sources in the ministry hinted at quid pro quo response from Pakistan. “The question of sending trade teams does not arise in the current hostile environment. I am not aware of a categorical decision being conveyed to relevant departments so far,” a mid level official told Dawn privately.

There is said to be huge scope for increasing the two-way trade between the two countries with gigantic consumer markets. There is a market for Pakistani cement, fabrics and many other items in India, whereas Indian automobile and pharmaceutical industry eyes Pakistan with interest because of a price differential in similar products in the two countries.

The signing of South-Asia Free Trade Agreement and increase in the visits by businessmen has helped identify many areas of complementarities between two South Asian economies over the past three years.

“It took time but now business in Pakistan was overcoming its fears of Indian industry and getting ready to give it a second look as a huge potential market for their products. The current bitterness between the two governments has sent out a negative signal, but I am hoping that it would not just be the cost of hostility but also the expected dividend of warmer economic ties that would force the two countries to move towards normalisation of relations quickly and unconditionally,” an analyst who wished anonymity told Dawn.

“The tension between the two governments cannot be wished away. It will take its own time to diffuse. My negotiations were at an advanced stage with a business group in Delhi for certain arrangement for cross-border trade. In the current environment, however, it would be naive to commit resources in a venture with known high risk.

My friends in Delhi agreed to put it on hold for the next one year, at the least,” a business leader told Dawn on Monday responding to a report that appearing in a newspaper in India.