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                 Indian, Pakistani Businessmen Seek Closer Ties

   by Anjana Pasricha

   Indian and Pakistani businessmen are urging their governments to lower
   barriers and allow trade to flourish between the South Asian rivals.
   The businessmen met in the Indian capital as Pakistan showcased some of
   its products at an exhibition aimed at improving trade linkages between
   the two countries.

   Parveen Qaim Khani from Karachi, Pakistan, displays elaborate, hand
   embroidered traditional garments such as saris and salwar suits to
   Indian customers at her stall at an exhibition in the Indian capital.

   The four-day (Thursday-Sunday) exhibition showcasing fashion and
   lifestyle products brought to India by Pakistani businessmen, is part
   of efforts to normalize trade relations between the two countries.
   Khani believes such initiatives can foster deeper friendship.

   She says the public on both sides have great affection for each other.
   She says we are neighboring countries with common customs and culture
   and her heart wants that there should be no quarrel between the two
   countries.

   In 2011, when India and Pakistan resumed a dialogue, commerce was
   billed as a key confidence building measure in the hope that business
   could lower their distrust.

   The head of the Trade Development Authority of Pakistan, S.M. Muneer,
   points to the massive untapped potential between two countries. He says
   Pakistani businessmen need machinery, chemicals, technology and much
   more from India's bigger economy.

   "The liberalization of trade would benefit Pakistan producer[s] in
   terms of developing own brand, lower cost of production, easy
   availability of raw material and cheap transportation. At present
   Pakistan is paying 40 times more transport cost by trading with
   European countries and USA. Both countries can develop strategies to
   trade with rest of the world by specialization in those products
   wherein they have comparative advantage," said Muneer.

   However, progress has been painfully slow. While both countries set a
   target for bilateral trade of $ 6 billion by 2015, the total came to
   just $ 2.7 billion last year.

   Businessmen point to the many impediments between two countries whose
   festering dispute over the divided region of Kashmir has defied
   resolution.

   Heavily militarized borders mean there are very limited border trading
   posts, slowing the movement of goods. Tariff barriers remain high.
   There are also virtually no financial channels between the two
   countries. Because of these hurdles, indirect trade continues to
   flourish - for example, Pakistan often buys Indian goods via third
   countries such as Dubai, rather than directly.

   The president of the Federation of Indian Chambers of Commerce and
   Industry, Sidharth Birla, says both governments must dismantle barriers
   that are restricting trade.

   "Despite progress, visa problems are still faced by business
   communities of both countries. While our banks express interest in
   opening branches, there is no direct banking channel between India and
   Pakistan.  Opening up of important trade routes is imperative as it
   would save time and transaction cost of business on both sides," said
   Birla.

   Pakistani businessmen say India, with a huge middle class, is an
   attractive market for Pakistani goods such as those on display at the
   exhibition. Indian businessmen say energy pipelines bringing gas from
   Central Asian countries through Pakistan to India would lower costs in
   the energy-starved country. Such projects have been planned, but made
   virtually no progress due to India's fears of sabotage by Islamic
   militants based in Pakistan.

   The President of the Federation of Pakistan Chamber of Commerce and
   Industry, Zakaria Usman, says businessmen on both sides must nudge
   their governments in the right direction.

   "My question is that if China and Taiwan can work together, why don't
   we? Because I believe that to get together of the business people is
   most important and people to people contact is most important between
   both the countries," said Usman.

   ''When Indian Prime Minister, Narendra Modi, took over in May, hopes
   were raised that he would work in this direction with his Pakistani
   counterpart. Both are pro-business leaders. However, another diplomatic
   spat last month scaled down expectations.

   But businessmen hope the growing cordiality between people in the two
   countries, helped by events like the Pakistan trade exhibition, will
   build momentum. India too has held similar events in Pakistan.

   There is some optimism. Analysts point out that protests and a call for
   banning the exhibition by a Hindu group, the Rashtrawadi Shiv Sena,
   failed to disrupt the exhibition.

   Thousands of people flocked to snap up the Pakistani textiles and
   garments on display in New Delhi. And customers were enthusiastic.

   Analysts have urged both countries to follow the route that India and
   China have taken, who have built a thriving business relationship
   despite a lingering border dispute.
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References

   1. http://www.voanews.com/content/indian-pakistani-businessmen-seek-closer-ties/2448611.html