Islamabad: Pakistan's Commerce Minister has said that trade with India can only take place after all political issues between the two countries are resolved.

"If both countries resolve their political issues, we are ready to initiate trade dialogue with India," 'The News' quoted Humayun Akhtar Khan as telling reporters after announcing the government’s trade policy for fiscal 2003-2004.

He said that Islamabad's position was clear and it was for New Delhi to take the appropriate initiatives to facilitate commercial and economic interaction. Announcing the salient features of the new trade policy, Khan said it was aimed at sustaining phenomenal growth in exports and preparing for changing international trade scenario, while phasing out textile quotas by 2005.

Pakistan, he said, would seek to capitalize on its traditional comparative strength in textile sector, develop small and medium sectors like rice, carpets, leather, surgical instruments, cutlery, sports goods, build on its agricultural supply base and strengthen the marketing efforts.

He also informed that the 57-member-strong organization of islamic conference (OIC) was considering a proposal to enter into preferential trade agreements (PTA) for the promotion of trade among the Muslim states.

"The proposal would mature soon as it is about to be signed. The government has taken steps for effective "export development trade diplomacy," he said, adding that regional trade commissioners have been appointed in six regions -- America, European Union, Africa, Far East, Middle East and Central Asia.

Pakistan had already signed a trade and investment facilitation agreement (TIFA) with the United States, which would be a first step towards free trade agreement (FTA) with that country. An Economic Cooperation Organization Trade Agreement (ECOTA) signed with the European Union (EU)had already eased textile quota restrictions on Pakistan, he added.

Turkey and Iran have also agreed to enter into FTA's with Pakistan and talks are going on with these countries to sign the agreement as soon as possible. "Indonesia, Algeria, Morocco and Tunisia have showed their willingness to initiate a trade dialogue with Pakistan to enter into FTA while Pakistan and Sri Lanka close to sign FTA," he added.

For the agriculture sector, he said, five agriculture exports zones would be set up in consultation with the provincial governments. "A comprehensive programme would be prepared on the directives of the Prime Minister to encourage processing, packaging and establishment of cold storage facilities in Baluchistan for fisheries, apple, onion, potato and other agricultural products," he said.

Replying to a question, the minister said the country had an adequate exportable surplus to achieve the target of $12.1billion during the current year.

With regard to WTO (World Trade Organization) regime, Khan said, twelve existing industrial estates have been operating in the country and under equal sharing cluster, combined facility will be extended to them.

ANI