ISLAMABAD, March 9: Pakistan and Afghanistan will establish separate Free Trade Zones (FTZs) in their border areas if their relations remain sour on the issue of cross border infiltration, Interior Minister Aftab Ahmed Khan Sherpao told reporters after inaugurating a free pollen allergy camp on Thursday.

The minister said US President George W Bush had announced a joint FTZ at Pakistan-Afghanistan border area to benefit both country and bring development in their respective areas.

Elaborating the concept of FTZs, the minister said the industrial zone had been proposed on Pakistan-Afghanistan border area and its all production would be exported to the US markets.

He said the FTZs would be exempted from any sort of tax and duty. “The establishment of FTZ would bring prosperity in the neglected tribal areas in Pakistan, as it would generate job opportunities and development activities there,” he added.

Responding to a question about managing authority if a joint FTZ is established, the minister said the matter would be discussed with the US to formulate the policy to run the zone.

He said the US would be informed that establishment of a joint FTZ for Pakistan and Afghanistan would not be feasible by any means due to security concerns and sour relations between the two countries.