If details can be worked out, there could be substantial trade with Pakistan via the land border at Wagah, instead of indirect trade through UAE

Just about twenty years ago, in 1996, India extended the ‘Most Favoured Nation’ (MFN) status to Pakistan, and it was expected that they would reciprocate this gesture soon thereafter. They have not done so, and every time this issue is raised, they have a different story to tell.

The trade with Pakistan, if there was the will and a friendly political and commercial atmosphere, could have been substantial. Instead, Pakistan’s exports to India have reached $327.496 million, while imports have gone up to $1809.867 million last year. A lot of goods that India ships to the UAE actually find their way to Pakistan, by Dhows, procured locally and shipped back to Karachi. There are a lot of goods and services that both can each offer each other, but that's not happening, more for political reasons than anything else.

Political talks start and end on the subject of Kashmir and the leaders' claim that they had "almost" come to a settlement on this highly debateable issue remain a distant dream. Now, the present excuse is that, let the new government in India tackle the issue, when it comes to power after elections in May 2014. So be it!

During his brief stay to attend the South Asian Association for Regional Cooperation (SAARC) business conclave, it is expected that Khurram Dastgir Khan will be meeting Anand Sharma, India's commerce minister, and the main topic is likely to be the issue of MFN, which according to the media, though signed in 1996, gives "market access", as stated by Khan. In addition, he has an agenda to cover, which includes greater visa facilities for business to grow and trade to flourish.

There is no doubt that the fact remains obtaining visa, to visit either of the countries, is a thorny issue, due to inordinate delays, at both ends.

It may be recalled that there was a proposal to supply electricity to Pakistan via the northern grid (at that time, when single national grid had not come into being) and a Pakistani delegation was to come to India and finalise the matter, soon after Nawaz Sharif became the prime minister. This was cancelled by Pakistan and there has been no further talk on the subject.

There are other issues such as need to abolish the negative list in Pakistan and reduction of non-tariff barriers on the Indian side, which was signed in 2012, but both have to implement them!

In fact, if details can be worked out, there could be substantial trade via the land border at Wagah, instead of a sea route.

It is imperative that, when the new government is formed after the elections in India, a serious review must take place to strengthen relations with all countries, and special attention should be paid to develop even closer trade relations with not only Pakistan, but Bangladesh, Myanmar and Sri Lanka.

(AK Ramdas has worked with the Engineering Export Promotion Council of the ministry of commerce. He was also associated with various committees of the Council. His international career took him to places like Beirut, Kuwait and Dubai at a time when these were small trading outposts; and later to the US.)