India, Pakistan banks may open cross-border branches

New Delhi:India is considering to allow Pakistani banksinits territory and the neighbouring country isset to reciprocate, to strengthen bilateral trade.A common view was expressed by commerce ministers of thetwo countries at a FICCI meeting here today.

"The Reserve Bank of India and State Bank of Pakistanhave already discussed this matter and will take the nextstep," commerce and industry Minister Anand Sharma said.

[caption id="attachment_96112" align="alignleft" width="380" caption="PakistanCommerce Minister Makhdoom Amin Fahim said the two nationsowe it to the future generations to iron out differences andmove forward.Reuters"][/caption]

Sharma, who held official level talks with PakistanCommerce Minister Makhdoom Amin Fahim yesterday, said"When we are going to encourage trade and investment, not onlycustoms check posts but banks are also essential."

Making a similar comment, Fahim said,"Both countries arenow poised to open bank branches and land routes."He said the "atmosphere of fear and apprehension hasreduced considerably" and the businessmen in both thecountries have started to "believe their governments".

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Later at an Assocham meeting, Fahim said the two nationsowe it to the future generations to iron out differences andmove forward. Happy over the response he received in India inthe last four days, Fahim said,"if we are taking one step,

your people are taking two steps".

Assocham president Dilip Modi announced that the chamberwould be sending a high-level business delegation to Pakistanin November. It will comprise corporate honchos like KP Singh of DLF, Sajjan Jindal of JSW Steel and Analjit Singh of Max group.

Earlier, Sharma said the two governments would try andresolve visa related problems of businessmen. Bilateral tradeis set to rise to $6 bn in 3 years from $2.7 bn.

Fahim informed Sharma that Pakistan recognises that grantof the Most Favoured Nation (MFN) status to India would be keyin expanding bilateral ties.

PTI