KARACHI, Jan 22: India is keen to develop cross-border trade with Pakistan, Bangladesh, Nepal and Bhutan from four designated points of its international borders with these countries.

Indian Commerce Minister Kamal Nath is expected to visit Pakistan shortly to review cross-border trade facilities at Wagah border.

Mr Tariq Sayeed, the recently elected president of Saarc Chamber of Commerce and Industry, who was in New Delhi last week, quoted the Indian commerce minister as saying that his country was keen to play a key role in promoting economic and trade relationship with Saarc member countries in which promotion of cross-border trade was a vital factor.

“We were informed that only 11 trucks operate every day, mostly carrying cement from Pakistan, to India through Wagah border,” Tariq Sayeed informed Dawn by telephone from Islamabad on Tuesday. He said that he had proposed to the Indian businessmen and officials to raise the number of trucks to 100 per day.The Indian minister, he said, would review the existing logistics support and infrastructure facilities at the Wagah border. “We too have informed Indians to play an active role in developing logistics wherever it is needed and improve upon the infrastructure facilities.”

Responding to mounting demands from businessmen in Punjab, the federal government allowed resumption of overland trade with India only a few years ago. But so far only vegetables, cement and few more items are being traded. India now wants its tea to be exported to Pakistan via Wagah.

“Indian case for supplying tea through Wagah has gained strength following a steep rise in Kenyan tea prices because of unending turmoil in the African republic,” a local tea trader said. Kenya, for long has been the main tea supplier to Pakistan. Pakistan has one of the highest per capita tea consumptions at 11 kilogram and India is desperate to get a foothold.

Lahore and Amritsar are the two major cities that are located in Pakistan and India within hardly 50 miles range and offer all prospects of quick growth of bilateral cross-border trade. Both Punjabs -- Indian and Pakistan’s -- are the two developed provinces of the two countries that have seen an exchange of a big number of cultural, political and business delegations in last eight years.

While the overland trade growth prospects between Pakistan and India via Wagah are all bright, little is being done to resume such trade from Munabao-Barmer crossing where a large number of people living on either side of international border in Thar and Rajasthan are members of same families and clan who still maintain family relationship among themselves.

“We did not discuss cross border trade through Sindh-Rajasthan,” Tariq Sayeed replied to a question on the plea that there were no such logistics and infrastructure facilities to support such a trade. But small customs check-posts have been opened on either side of the border after resumption of passenger train service.

More than a year ago, Indian animals were also imported from India via Rajasthan and a livestock yard was also constructed to keep them in quarantine and for a check-up before their slaughter. “Even if there are no logistics and infrastructure facilities, these can be developed with some investment,” a trader in Jodia Bazar said.

Traders in Karachi say that Sindh and India states of Rajasthan, Gujarat and Maharashtra had trade links that date back to centuries. After commissioning of Sukkur barrage in 1932 when cotton plantation was commenced in Sindh there were plans to establish a direct link with Ahmedabad, then the main textile centre of undivided India, by constructing a highway via Badin. With partition in 1947, the plan could not be taken up.

About 15 years ago, India was asked to close down its consulate in Karachi. People in Sindh have to go to Islamabad for seeking Indian visa even though they have to go by train via Rajasthan. None of the two countries are opening consulates in Karachi and Mumbai despite many announcements made in this regard.

Trade between Pakistan and India have peculiar features which probably are not to be found in trade relationship of any two other countries and two neighbourly countries. India gave Pakistan Most Favoured Nation (MFN) status in 2006 but is putting up a lot of non-tariff barriers for Pakistan’s exports. Pakistan trades with India with a positive list of 740 items. The two-way trade volume remains below $1billion a year.

Informal trade is assessed differently in India and Pakistan. An Indian researcher Taneja put informal trade of her country with Pakistan at $2billion a year, out of total $3billion in 2006. However, officials in the commerce ministry in Islamabad estimate informal trade with India at $100 to 500million.Pakistan gets from India alcoholic beverages, cosmetics, medicines, chemicals, textiles and a variety of consumer items through smuggling while India receives spices, sugar, vegetable ghee and some other items. Pakistan businessmen import India-made machinery, engineering items and equipment through third countries.

Businessmen in India and Pakistan are convinced of a 10-time increase in bilateral trade if there are no official and unofficial hurdles. Political considerations on both sides are stopping two countries from implementing decisions taken by them.

A decision to open bank offices in India and Pakistan has been taken. Both the countries have to resume bilateral shipping. The train service at Munbao-Barmer sector was to be turned into cargo service. It is now almost two years that these decisions were taken.