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Pakistan looking at IT, tourism tie-ups with India

BS Banking Bureau in Mumbai | March 29, 2004 14:25 IST

Pakistan is willing to tread on the softer path of information technology and tourism besides oil and gas to kickstart trade ties with India.

Indian Inc gathered this impression from its first meeting with Pakistani Finance Minister Shaukat Aziz over the weekend ahead of the fourth Indo-Pak one-day match.

Around four dozens of chief executive officers and chief financial officers of Indian industries went to Lahore for a whirlwind tour over the weekend.

It included a day and night one-day match, dinner with Pakistan's finance minister and central bank governor and breakfast with the chief minister of Punjab.

Aziz told MS Ramchandran, CMD of Indian Oil Corporation that Pakistan is keen on the Iran-India gas pipeline which can be laid via Pakistan.

This will enable India to import gas from Iran through an offshore pipeline across Pakistan.

If the 2,700 km pipeline plan translates into reality, the cost of gas will come down by 20-25 per cent for India.

He is also in favour of tying up with India for IT education and software as well as tourism.

"Before we lift all barriers, we need to reduce the trust deficit," the Pakistan finance minister said.

Once the mistrust is abolished, the trade ties can take off on a solid foundation, he had said.

"The finance minister is keen to sell Pakistan on the tourism front and he favours free movements of tourists across the border," a corporate chief who attended the meeting said.

Aziz has also promised to look into the waiver of the existing visa restrictions. At present any Indian visiting Pakistan needs separate visa in separate cities.

The volume of Indo-Pak trade, which is now as little as $200 million a year (the volume of third-country trade and contraband trade is about 10 times the official trade figure).

Indian Divestment Minister Arun Shourie recently emphasised the need to tap the great potential in areas such as tourism, energy exchange and high-end manufacturing.

India buys pulses, dried fruit, leather, semi-precious and precious stones and cotton from Pakistan, which buys chemicals, engineering goods, tyres and pharmaceuticals from India.

If the relationship between the two countries improve, Pakistan could open up to Indian imports, currently restricted to a list of 712 items, mainly raw materials. India, however, has no formal restrictions on Pakistan imports.


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