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India, Pak, Bangla pledge to increase economic ties

Putting behind bickering and bitterness, conflicts and hostilities of the past, the prime ministers of India, Pakistan and Bangladesh today pledged to accelerate economic cooperation in the subcontinent for the well-being of their peoples.

Addressing the one-day Trilateral Business Summit, Prime Minister I K Gujral, Pakistan Premier Nawaz Sharif and Bangladesh Prime Minister Sheikh Hasina called for speedy and effective steps for enhancing trade to usher in a new era of cooperation and prosperity in the region.

In his lengthy address proposing a series of concrete measure to boost trade, Gujral announced his government's decision to double the ceiling for overseas Indian investment under the fast track in South Asia to encourage Indian entrepreneurs to invest in the region and asked Pakistan to trade with India in line with its international commitments and obligations.

Addressing the summit, the Pakistan premier said South Asia must rid itself of tension and mutual mistrust so that it could witness an era of peace and tranquility.

The region, Sharif said, could become a bridge for political and economic cooperation between other continents because of its strategic locations. ''We need to develop collective positions at international fora on economic and trade issues,'' he added.

Sharif said Pakistan was committed to regional cooperation for the mutual benefit of the peoples of the countries. The process of liberalisation should move in such a manner that it proved to be beneficial for the countries of the region.

He said his government was committed to removing red-tapism and bottlenecks that came in the way of promoting trade. Recent events in Pakistan had strengthened democracy and institutions in the country, he added.

He said his government had decided to host a regional economic summit later this year.

In her opening remarks, the Bangladesh premier said the business summit reflected the common desire of the three countries to work together. Sheikh Hasina said the private sector would have to play a leading role in the economic prosperity of the region. ''We have to involve the energies and innovative skills of our private sector in a big way.''

Gujral announced a path-breaking plan for boosting economic cooperation in South Asia doubling the ceiling of investment by Indian entrepreneurs in countries of the region and offered to lift quantitative restrictions on agreed imported goods from Bangladesh and increase the number of goods trains from India to Pakistan from 15 a month to one every day.

He also proposed a South Asian investment treaty, a regional electricity grid, and an arrangement for avoidance of double taxation and settling commercial disputes to promote intra-South Asian Association for Regional Cooperation trade.

The prime minister offered to double the number of freight trains from India to Pakistan from the existing level of ten to 15 trains a month to one every day. ''We also offer to increase the frequency of Samjhauta Express (for passengers) which presently runs twice a week from India to Pakistan, to six times a week.''

This, he said, would not only be in keeping with the two countries' commitment to make travel easy within the region and promote greater contact between their peoples but would also signal their resolve to move forward in practical ways.

Nawaz Sharif, in turn, responded positively to Gujral's offer to double the number of goods trains from India to Pakistan.

"Mr Gujral suggested one train a day...Why not two or three trains a day from India to Pakistan and vice versa,'' Sharif asked soon after Gujral's speech.

UNI