"A federation comprising India, Pakistan and Bangladesh with a common currency such as the Euro should be formed to settle problems in the region. This will root out terrorism and pave the way for free trade," Paswan said here.
Earlier too, Paswan had favoured the three countries becoming a "Mahasanghatan" (federation) with a common currency and open trade, a move, he said, would put an end to terrorism.
He had made the comments after BJP general secretary Ram Madhav had said that "the Rashtriya Swayamsevak Sangh (RSS) still believes that one day these parts, which have for historical reasons separated only 60 years ago, will again, through popular goodwill, come together and 'Akhand Bharat' will be created."
Condemning the Pathankot terror attack, Paswan praised Prime Minister Narendra Modi's friendly gesture in stopping over in Pakistan to greet his counterpart saying both the nations were troubled by terrorism.
Stating that he was speaking on behalf of his Lok Janshakti Party, Paswan, who was here to attend a conference on Monday, said "we want friendship between India and Pakistan" without any compromise on national security.
On governance in Bihar, the Minister said that "jungle raj" had returned to the state in the last Assembly elections and the present government led by Nitish Kumar would not last for more than two years as a result of rampant lawlessness.
Paswan, who is in-charge of food and distribution ministry, also reassured of central government's readiness to deal with any possible shortage of pulses and asked state governments to act strongly against hoarders.