In a reconciliatory gesture towards Pakistan after weeks of tough talk, Commerce and Industry Minister Anand Sharma has said that the only way for enduring peace and stability in the region is through economic partnership.

“India is of this considered view that there is no alternative way other than building an atmosphere of confidence and trust. This is the only way for enduring peace and stability. And for that the only way is strengthening economic partnership,” Sharma said while speaking at the on-going CII Partnership Summit in Agra.

Earlier this month, Prime Minister Manmohan Singh had sent out a strong message to Pakistan following the violent killing of two Indian soldiers at the Line of Control in Kashmir stating that it cannot be business as usual till the country mends its ways.

The UPA Government, however, does not seem to see much merit in derailing the economic partnership process that has taken huge leaps forward in the past two years.

Listing the achievements made last year, the Minister said that apart from opening up markets further on both sides for industrial goods, a decision has also been taken on allowing investments and opening bank branches. Talks are also on for sale of electricity to Pakistan.

“I know we have friends from Pakistan in the audience here. Please go back and remind them (the Pakistani Government) what we discussed last February and where we are and not to allow anything which actually holds this region back,” Sharma said speaking at a session on South Asia economic integration.

Amin Hashwani, Director, Hashwani Group of Companies, Pakistan, pointed out that while there is a delay in granting most favoured nation status to India by Pakistan, it was definitely on cards.

Pakistan has breached the December 31, 2012 deadline set by the two sides for grant of MFN status to India by removing ban on all Indian products. Although Pakistan more than trebled the number of items it imports from India earlier this year by dismantling the small positive list of imports, it continues to maintain a negative list of 1,209 banned products.

“We are optimistic that we will resume our trade dialogue soon and take forward the liberalisation process that has already started,” a Commerce Department official told Business Line .

CII Vice-President Ajay S. Shriram said that businesses on both sides wanted bilateral ties to be stronger.

“There could be some political problems some times but if people-to-people relationship is strong, it could put pressure on political parties to deliver results,” Shriram said answering queries from journalists.

>amiti.sen@thehindu.co.in

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