Democracy in Pakistan to help improve biz with India: Assocham

India can expect cooperation from Pakistan with "restoration of democracy" in the neighbouring country, industry body Assocham said a day after the coalition government forced Parvez Musharraf to resign as President.     

An Assocham study on Indo-Pak ties has recommended that the "key to solving Indo-Pak issues lies in increasing bilateral trade, promoting people to people contact and raising businessman's stake."     

It said with restoration of democracy in the neighbouring country, the Indian government can expect cooperation from Pakistan ruling coalition in the infrastructure related projects in sectors like railways, power and telecom.     

"Governments on the two sides should play facilitators' role and promote trade by relaxing the visa and travel regime, a pre-requisite for trade promotion," the study said.     

New rail and road links on Khokrapar-Munabao and the Srinagar-Muzaffarabad route should be opened up, it said.     

Trade between the two countries can quadruple to $9 billion over the next four years, provided the neighbours increase cooperation in freight transport, open more routes to trade in commodities and remove tariff barriers, it said.     

At $2 billion, formal trade between the two countries currently is much less than the level of illegal trade that is executed through land borders and third countries.     

"Low level of trade is also attributed to tariff and non-tariff barriers. If these are removed, bilateral trade can go to $9 billion by end of 2012," Assocham President Sajjan Jindal said.