LAHORE, March 19: Chemexcil Business Delegation Leader Satish has stressed the need for starting direct trade between India and Pakistan for the benefit of the counsumers and relaxing business visa restrictions to facilitate strengthening of bilateral economic relations. Addressing a press conference after arrival for a meeting with Pakistan Chemicals and Dyes Merchants Association office-bearers and members here on Saturday the Chairman of the Basic Chemicals, Pharmaceuticals and Cosmetics Export Promotion Council said that consumers in India and Pakistan were paying high prices of products manufactured in the two neighbouring countries because of indirect trading via Dubai. The prices could be reduced considerably by starting direct trading through land route. He said that India was exporting drugs, pharmaceuticals, crude drugs, dyes and dye intermediaries, inorganic, organic and agro-chemicals. cosmetics, toiletries, essential oils, agarbattis and castor oil to Pakistan. The exports had increased from Rs1572 million in 2001-2 to Rs5208,9 million in 2003-4. He said that city-specific visa system with police reporting restrictions was a great hindrance in promotion of business between the two countries. He said that businessmen should be issued country specific visas to businessmen so that they could travel freely for exploring possibilities for boosting bilateral trade and joint ventures. Pakistan Chemicals and Dyes Merchants Association Lahore Branch President Khawaja Khawar Rashid said that the volume of indirect Indo-Pakistan trade via Dubai was three times of the direct $500 million trade. Consumers in Pakistan had to pay higher costs on account of payment of Dollar 3 to 3.5 per kg on account of airline charges. Direct transportation costs were less than half Doallar per kg.

He said that India and Pakistan could start joint ventures in dyes and chemical sectors as European countries were closing their production facilities gradually for meeting their requirements through imports. China would be the only competitor left after the discontinuation of production in Europe, and India and Pakistan could compete it by starting joint ventures. He also stressed the need for removal of tariff and non-tariff barriers for increasing economic cooperation between the two countries.