NEW DELHI, March 25: Finance Minister Shaukat Aziz said on Thursday that the proposed Iran-Pakistan-India gas pipeline could become the turning point in the evolution of happy ties with New Delhi.

Mr Aziz also told CNBC TV channel that tourism between the two countries could be boosted to the benefit of both. He added that come private sector companies were already active in exploring and expanding the facility.

Asked in the late night broadcast if the time was ripe for Indian businessmen to invest directly in Pakistan, he said it was premature though not impossible to envisage it.

There had to be the right atmosphere for business prospects to grow between the two countries, he said without referring to the Kashmir dispute, which many believe is holding up key areas of cooperation.

Mr Aziz has been personally involved in the deep and complex negotiations of the pipeline project. Indian news reports said Mr Aziz had met Indian National Security Adviser Brajesh Mishra in Lahore on the margins of the cricket final match between the two countries.