Pakistan and India may exchange additional lists of items for tariff concessions under South Asia Preferential Trade Arrangement in October to enhance volume of bilateral trade as the SAARC countries geared up to finalise the much awaited South Asia Free Trade Area.

The decision of adding more items to the lists for concession was taken following the request from the SAARC secretariat to the governments of the two countries, a Pakistan official in Islamabad said.

The lists would be exchanged by officials of the two countries following efforts to finalise the draft of SAFTA, in Katmandu in October to allow free trade among member countries, Pakistan daily Dawn quoted officials as  saying. The SAARC Summit is scheduled to be held in Islamabad early next year.

Recently Pakistan announced its willingness to give tariff concessions on 74 items under SAPTA. The list was expected to be expanded. India has already granted most favoured nation status to Pakistan even though Islamabad has not reciprocated so far.

In recent months, Pakistan has shown considerable haste in finalising its list of items for tariff concessions for India under SAPTA as New Delhi linked to progress in SAPTA and SAFTA to the holding of SAARC summit in Islamabad early next year.

Under SAPTA, Pakistan has so far given concessions on around 240 items to India, while Islamabad received concessions on around 370 items from New Delhi under the same arrangement.

"There is still room for giving duty concession to India under SAPTA on 440 more items," the officials said.

"Pakistan should give concession provided India reciprocated with at least three to five folds margin so as to bridge the trade deficit," they said.

This development will also result in a meaningful advance in trade relations, the sources said, adding in case the governments of the two countries gave further official concessions on items, it would also result in reduction of smuggling.