Shaheen International, a Pakistani business group, is exploring the possibility of forming a joint venture with Reliance Industries Ltd to set up a petrochemical complex in Pakistan.

"The plastics products industry in Pakistan needs raw material like granules and there is scope to establish naphtha cracker unit to cater to domestic demand and export," Shaheen International Director Mohammad Z Motiwala told reporters on the sidelines of a business meet organised by the Indian Merchant's Chamber in Mumbai on Saturday.

They would hold talks with Reliance Industries to explore prospects for a joint venture in petrochem sector, Motiwala said.

They (Reliance) could also go solo to make investment, he said adding Pakistani infrastructure could be used to access Iran and CIS countries.

The Karachi Chamber of Commerce and Industry president Siraj Kassam Teli said governments of both countries are working to make South Asia a free trade area.

This provides an opportunity to boost bilateral trade and investments in areas like textile, he said.

Besides commercial interests, governments are working to improve diplomatic relations. However, even if by chance bilateral dialogue stops, they should maintain status-quo and should not go back to the starting point, he added.

IMC President Shailesh Haribhakti said the Indo-Pak trade -- direct and indirect -- was close to $6 billion and with improvement in economic ties it has potential to touch $15 billion in the next three years.