India and Pakistan agree new shiping pact

Mumbai: The Indian and Pakistani Governments signed last week a revised shipping protocol that eases restrictions on trade between the two countries. The agreement - first proposed in early 2006 - allows vessels from each country to transport third-country cargo from the other's ports while permitting third country ships to ply the route between the two countries. Blilateral trade between the two countries amounted to US $860m last year, a massive increase of 43%. Separately, the Governments are reported to currently be negotiating a ferry service between Mumbai and Karachi.  [18/12/2006]