KARACHI, March 6: Improved relations between Pakistan and India need to be transformed into increased direct trade, raising economic opportunities of both the people, said chairman, valuation committee of the Karachi Chamber of Commerce and Industry, Muhammad Haroon Aagr.

He said Indian products were entering Pakistani markets via Dubai in huge quantity but at high prices and this could be avoided through direct trade between these two immediate neighbours.

"Indian tyres, tubes, milk, medicines and many other items were being traded under this uncalled-for mode of business while Indian traders are interested in direct trade mainly through land routes," Mr Aagr said in a statement here on Saturday.

Haroon Aagr, one of the senior businessmen comprising KCCI trade mission that visited India recently for promoting bilateral trade and industry, said Pakistan through free trade with India would benefit in many areas, mainly imports of low-priced quality products of chemicals, cosmetics, railways track and equipment, agriculture and automobile machinery, pump, boilers, sugar mills plants/machinery, power generation plants/machinery, and raw materials of plastic industry like polythene.

He, however, pointed out that there were some bottlenecks in the import of polythene from India, which at present was being imported from other distant countries that enhanced the cost of local plastic industry.

Mr Aagr said Pakistan would also save a huge amount in the shape of low freight charges on these imports against those from Europe.

He said Pakistan could also export a wide range of products, including cotton, raw wool, carpets, fabrics, alcohol, beverages, sulphur, herbal medicine, pulses, precious stones, surgical and sports goods. Pakistani dresses like "kurta" and "shalwar" were very popular in India, he added.

The leading businessman called for signing of a free trade agreement between the two countries as early as possible, which would be a step forward to the South Asian Free Trade Agreement (Safta). Regional trade agreements like Nafta, he said, had proved a very effective tool for economic growth of the regional countries and India and Pakistan should also work seriously on the subject.-APP