Friday, July 22 2005 19:11 Hrs (IST) - World Time -

Islamabad: As India conveyed to Pakistan its willingness to permit trade through the Wagah border, Islamabad has hinted at enhancing economic ties with New Delhi in its new trade policy but said its opening is linked to progress of talks to resolve Kashmir and other key issues.

The new trade policy announced by Pakistan's Commerce Minister Humayun Akhtar Khan yesterday (July 21, 2005) soon after it was approved by the Cabinet presided over by Prime Minister Shaukat Aziz said that a new cell has been constituted to strengthen facilities for trade with neighbouring countries.

It said steps were being taken to beef up facilities at the Wagah border to gear up for enhanced trade.

However, Khan said opening of trade is linked to the progress of talks to resolve Kashmir and other key issues.

About enhancing trade with India, Khan told reporters here today that the composite dialogue with India is underway to resolve political and economic issues. "If progress is made on political issues it will definitely be reflected on trade and economic issues."

Officials here said that a clear picture was expected to emerge after the meeting between Commerce Secretaries of India and Pakistan scheduled to be held in New Delhi on August 9-10. Their meeting is part of the second round of Composite Dialogue process, which included talks on Economic and Commercial Cooperation.

Pakistan would implement the South Asian Free Trade Agreement (SAFTA) of the SAARC countries if it is implemented from January next year, Khan said, adding, "Progress on it is satisfactory and Pakistan is ready to implement it at the given time."