Cross border trade between India and Pakistan could rise to US$9 billion a year due to the Paksitani government's decision to phase out restrictions on most imports by the end of 2012, website Dawn.com reported.

India's Foreign Mnister S. M. Krishna thanked Pakistan for deciding to scrap a list on allowed imports which prevents hundreds of Indian exports.

"Pakistan is moving in the right direction in terms of bringing economic content into the polcitical relationships. This would certainly help strengthen our bilateral ties," he was quoted as saying.

It means most things from India can now be imported into Pakistan, except for 1,200 items which have been put on a 'negative list'.

Earlier, Pakistani traders were allowed to import only about 2,000 items from India.

The World Bank estimates annual trade between the two countries totals US$1 billion but has the capacity to rise to US$9 billion once the trade barriers are lifted.

Major exports from India to Pakistan include sugar, cotton, man-made filaments and chemicals, while its top imports from Pakistan include fruit, mineral fuels and organic chemicals.

Photo: Dw.de

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