The Indian Commerce Secretary, Rahul Khullar said that two countries have reached a broader agreement on granting reciprocal visas which will liberlise visa provisions for businessmen. He expressed hope that the pact will be finalised in the Home Secretary level talks scheduled in December this year.

Further to resolve the Tulbul issue Secretaries of Water Resources of the two countries are also likely to meet soon. Action on the Joint Commission which has not met since 2005 will also be resumed.

India said that it is ready to have preferential trading arrangements with Pakistan and hoped that the latter would move faster in the process of granting full Most Favoured Nation (MFN) Status to the former for which it has already agreed in principle.

Pakistan Commerce Secretary, Zafar Mahmood said that Prime Minister Yousuf Raza Gilani is supportive of granting India the MFN status.

'We have to fully normalise our relationship and you cannot fully normalise the trade relationship without invoking the MFN principle...so we will be working on that,' he said.

Mahmood and his team had arrived in Delhi on Saturday ahead of the two-day talks.

India had granted MFN status to Pakistan way back in 1996. Islamabad, had announced to grant the crucial WTO-compliant regime for New Delhi on November 2. But confusions followed. At present, Pakistan allows import of only about 1900 items from India.

Armed with a 'political backing and mandate”, Mahmood in his opening remarks in the two-day talks said, 'I want to assure you that please have trust and faith in the process. Times have changed. World is coming closer'.

Khullar hoped that that the ongoing talks will achieve clarity on some arrangements at the earliest. He said that the decisions taken in the talks will help to double the bilateral trade within three years from $ 2.7 billion to $ 6 billion per annum.

Mahmood said “'...Hopefully, you will hear good news after two days.'
'With such clear political vision, we are now obliged to walk the talk,' Khullar said.

Enhancing India-Pakistan bilateral trade assumes importance in the wake of Euro Zone crises which is likely to impact the world economy.

In the two-day talks issues like progress on initiatives on trade in electricity, ways to substantially expand trade in all types of petroleum products and cooperation in information technology sector are likely to be discussed.

The two sides may also deliberate on opening of bank branches in each other's countries.

Last round was held in April, when India's Commerce Secretary Rahul Khullar visited Islamabad.