KARACHI, Aug 26: The chairman, Synthetic and Rayon Textiles Export Promotion Council (India) Rakesh Mehra on Thursday said the both countries should show more openness and relax visa policy.

He was talking to the members of the Karachi Chamber of Commerce and Industry along with his 11-member trade delegation from India. He is heading the delegation and would hold similar meeting with the members and office-bearers of the Pakistan Hosiery Manufacturers Association at its premises in PECHS here at 10:30 a.m. on Friday.

"There is an urgent need to open up India-Pakistan border for trade between both the countries, which are presently trading through a third country and paying much higher freight," he said.

Starting from the regular exchange of delegations and individual visits to each other countries, he said, would lead to close trade collaborations for gradual transformation into joint ventures.

The members of the delegation were of the view that the direct trade link would benefit the two countries besides reducing the cost for the consumers. The delegation is visiting Pakistan to explore new trade opportunities and strengthen business relations between India and Pakistani textile industries.

He also proposed to face the challenges and avail opportunities in the quota-free market regime jointly by supplementing each others' efforts instead of damaging each other. "We can help each other for such a joint strategy by identifying the areas."

He said the Indian textile industry was exceptionally good in manufacturing core yarns of 120 to 140 counts and had a huge industry based on man-made fibre, which was still growing.

The importance of countries like Pakistan, India, China, Indonesia, Brazil and Turkey was growing but it was important to note that only those countries would be able to sustain who would ensure lesser cost of products.

Stressing on the need for a regional trade agreement between India and Pakistan to face the WTO challenges, he said at present Indian share in the quota market was only 3pc and that of Pakistan was 1.5pc, and if the same was compared with China and Hong Kong it was a very meagre share.

Giving details about the roadmap of the Indian textile industry for 2010, he said from the present market size of around $38 billion, India exported 26pc and consumed 74pc. However, six years from now, this market size would grow to $85 billion, out of which local consumption would be 62pc and exports 38pc, he added.

He disagreed with a point that (Indian textile industry enjoyed some benefit or relief in the form of taxes or rebates. On the contrary, he said, the industry in Pakistan was much comfortable as there was no provincial taxes.

The President of the KCCI Siraj Kassem Teli in his address of welcome said, "it is indeed a matter of satisfaction that since the confidence-building measures initiated between India and Pakistan, the exchange of trade delegations between them has considerably increased."

He said the trade delegation of KCCI had visited New Delhi and Mumbai in the last week of February, 2004 and signed 4 Memoranda of Mutual Understanding, in New Delhi and Mumbai.

He said that Pakistan's exports to India decreased from $173.66 million in 1998-99 to $70.66 million in 2002-03, whereas imports increased from $145.85 million in 1998-99 to $238.3 million in 2000-01, but declined to $166.57 million in 2002-03.

Furthermore, trade between the two countries is also conducted through third-country as well as through illegal channels, which is estimated about $3 billion. He maintained that it is, however, encouraging that in 2003-04, the volume of trade, due to new initiatives, has moved to $476.03 million. Out of which, imports consist of $382.36 million and exports valued at $93.68 million.

The balance of trade, however, persistently is in favour of India, except for the year 1998, when Pakistan exported surplus sugar. He said that free trade between the two countries would help control the smuggling.

Therefore, he said the chamber has recommended to the government that the Most Favoured Nation (MFN) status be granted to India and at the same time, India and Pakistan must amend the 1974 protocol on shipping to allow movement of ships, bearing India/Pakistan flags in each other country besides improving travelling and visa facilities. -APP