Amritsar, Dec 4 : Pakistan traders in Amritsar fear that the recent terrorist strikes in Mumbai could hamper trade and economic co-operation between India and Pakistan.

Pakistani traders participating in the Punjab International Trade Expo 2008 (PITEX) apprehend that if circumstances do not change, trade between both countries will decline.

"Trade has been affected. We are mentally perturbed by what has been happening here," said Mohammed Afzal, a Pakistani exporter.

Several Pakistani traders were expecting to participate in this trade fair, but abstained for security reasons.

"Everyone is traumatised by the prevailing circumstances. It is affecting trade between the two countries. The situation also makes it difficult for traders to travel from one country to another. It is a very alarming situation," said Mohammed Tahir, another exporter.

The ties between both countries have soured since ten armed militants killed close to 200 persons and wounded nearly 300 in Mumbai last week.

The attack was one of the biggest in the history of the country. A group of men armed with assault rifles and grenades fanned out across Mumbai to attack certain locations frequented by tourists and businessmen. These included the city''s top two luxury hotels - Hotel Taj Mahal and Tower and the Oberoi Trident. (ANI)