Indian entreperneurs called to set up shops in Pakistan

Mumbai, Mar 19 (UNI) Indian enterprenuers must go ahead in establishing their shops in Pakistan, particularly in the areas of manufacturing, banking and information technology (IT) services in order to access low cost manpower and raw materials, Mr Ishrat Husain, former Governor of the State Bank of Pakistan, today said.

In his address on the Regional Economic Cooperation at the 16th Asia Society Corporate Conference here, Mr Husain said that Indian manufacturers could access the low cost human resources as well raw materials in Pakistan and market their products in third countries with a much higher margin of returns.

To achieve such a relationship, he said, the financial institutions of both the nations should be allowed first to establish their operations to strengthen the confidence building measures between the two nations.

In this context, Mr Hussain informed that two banks from each nation should be permitted to open up their full-fledged branch operation in each other's countries.

From India, State Bank of India and Bank of India are the first lot to be allowed to operate their wholesale banking business including retail operation in Pakistan in the next couple of months in exchange for two Pakistan banks--state-owned National Bank of Pakistan and private sector Habib bank--being allowing to open their outlets in India.

''The Central Bank of Pakistan is currently processing the applications of both the Indian banks and it would be cleared in the next couple of months.....It would be a win win situation for both the countries'', he observed.

The bilateral trade between the two nations could improve eight times from the current level of half a billion dollar if the relationship between the two south east asian nations improved through confidence building measures for which both the Governments are working closely.

Mr Husain, who is currently engaged in consultancy business, said Pakistan has already initiated a liberalised trade regime with tariff becoming on par with other asian nations while a majority 80 per cent of its banking and financial services are in the private sector.

He was also optimistic about setting up the proposed pipeline project between Iran, Pakistan and India and clarified that there was no political or economic opposition to the project except certain logistic problems in laying down the route of the pipeline.

''It is in the interest of both India and Pakistan to ensure energy security and reap economic benefits for the people of both nations'', he observed.

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