Improved Indo-Pak ties a real game changer, says US

Calling an improved Indo-Pak relationship in the region "a real game changer," United States Secretary of State Hillary Clinton on Thursday expressed satisfaction over the progress being made by the two countries on improving their bilateral trade and commercial ties.

"I'm very pleased by the progress that both India and Pakistan are making on the commercial front and the progress in implementing the transit trade agreement between Afghanistan and Pakistan," Clinton told US lawmakers at a Congressional hearing.

Clinton said Pakistan's civilian and military leadership both want progress with India and a better relationship between the two South Aisan neighbours is the real game changer in the region.

"The real game changer in the region is not so much our bilateral relationship as the relationship between Pakistan and India. And the more that there can be progress, the more likely there can be even more progress," the Secretary of State said in response to a question.

She pointed out the "successful visits" on the foreign and commerce minister level over the last several months and said that announcements have been made to try to streamline visas for businesses, and do more to accelerate movement across borders.

"And then the most favoured nation status is a really important development," Clinton said. "So we encourage it. We try to tell both sides how much it will change their relationship," she said, adding that she firmly believes greater regional economic integration would revolutionise the economy in Pakistan.

"India's a huge market, and Pakistan produces things that India needs. But they don't get into India in any direct and cost effective way. So the more we can do that, the better," Clinton said.

Clinton said the Obama administration is pursuing a "broader long-term vision" for regional economic integration through the 'New Silk Road' that envisions boosting economic connectivity between India, Afghanistan and Pakistan through Central Asia.

In her testimony before the House Foreign Affairs Committee on Afghanistan and Pakistan, Clinton who first announced the idea of the New Silk Road in Chennai early this year, said it more than a mere economic plan.

"It's not just an economic plan, it talks about how we can get these countries that have so many problems with each other to begin cooperating," Clinton said.

In his remarks, Congressman Joe Wilson said he has been very encouraged that Pakistan is developing a most-favoured nation trade status with India.

Wilson, who has been the co-chairman twice of the India Caucus, said the biggest beneficiary of a level of stability in Pakistan would be India.

"Why do you think this is moving at this time? And what can be done to promote a level of trade and positive contact between India and Pakistan?" Wilson asked.