India to show interest in investment in Pakistan

New Delhi, Sept 26: India is willing to walk an extra mile for improving economic relations with Pakistan and "can become a reliable source" for investment and technology for its neighbouring country, a Commerce Ministry source said.

The point would be highlighted by Commerce and Industry Minister Anand Sharma when he meets on Wednesday, an official delegation from Pakistan, headed by its Commerce Minister Makhdoom Amin Fahim.

Sharma would tell his counterpart that a rapid growing Indian economy can provide growth opportunity for all its neighbours and for them a reliable source for investment, technology and entreprenerial resources.

The India-Pakistan economic ties, at present, are restricted to the merchandise trade of just about USD 2.65 billion (2010-11). No investment or technology partnership has been built between the two neighbours whose relations have been marred by lack of mutual trust.

New Delhi, according to sources, feel that increase in trade and economic engagement would contribute towards building mutual trust.

"Therefore, instead of only competing each other in textile, rice and other products, India and Pakistan can join hands to create better export synergies," an official said.

In fact, according to an assessment done by a panel of economists of the Pakistan Planning Commission, the two neighbouring countries have the potential to grow their trade to USD 10 billion. The two ministers may also discuss liberalising visa regime, which has been hit by terrorism.

Sharma would also assure Fahim that the fear of Pakistani industry about being swamped by Indian goods is exaggerated, especially it can stand upto competition from cheap Chinese imports.

PTI