"Bilateral trade between India and Pakistan is showing a very buoyant trend during the current financial year (that ends Mar 31)," Commerce Minister Kamal Nath said in statement.

During the first four months of fiscal 2004-05, India's exports to Pakistan grew 328 percent to $167.38 million from $39.10 million during the corresponding period of the 2003-04 fiscal, the commerce ministry said.

Imports during April-July, however, dipped to $18.98 million from $25.31 million in the previous fiscal "but are expected to pick up during the remaining months of this fiscal," the minister said.

The total two-way India-Pakistan trade during April-July trebled by rising to $186.36 million against $64.41 million during April-July 2003.

"If the present growth trend continues, the total trade between India and Pakistan may cross $500 million during the current financial year," the minister said.

Total trade between India and Pakistan stood at $344.29 million during fiscal 2003-04.

Industry sources in both countries admit that the official trade is a small part of the total trade between the two countries as goods also flow through the borders and through third countries like the United Arab Emirates.

Trade data shows that in 2002-03, official trade between the two countries reached $251.01 million - close to the $250.35 million level in 2000-01 - after a dip in 2001-02 at $208.77 million.

Last week, in Islamabad, Pakistan Commerce Minister Humayun Akhtar Khan had announced the setting up of a Joint Study Group on Economic Cooperation at a press conference attended by Kamal Nath. This followed the Indian minister's meeting with President Pervez Musharraf in Rawalpindi on Nov 23.

Industry representatives from both the countries have been alleging hindrances to trade due to artificial barriers.
 
--Indo-Asian News Service