Bangalore:
Pakistan welcomed Indias decision to allow Pakistani Foreign Direct Investment, saying the move will create goodwill and give a boost to efforts to normalise bilateral relations.
The move will benefit
Pakistani investors and industrialists, we hope this decision will be fruitful for the people of both countries, said Foreign Office spokesperson Moazzam Khan.
Majyd Aziz, a leading Karachi-based businessman with interests in minerals and shipping, described the Indian governments decision as a progressive step and a good initiative but not a landmark development.
Pakistani industrialists are already able to invest in the Indian market through companies based in places like Dubai and Singapore. It will take some time for direct investments to happen, Aziz told.
It would be a landmark development if the Reserve Bank of India removes Pakistan-specific clauses and allows Indian businessmen to invest in Pakistan, he said.
However, he acknowledged that steps like Indias decision to allow Pakistani investments would eventually lead to the normalisation of relations in all spheres.
Abid Qaiyum Suleri, executive director of the Islamabad-based think tank Sustainable Development Policy Institute, who has closely tracked India-Pakistan trade relations, said regional economic integration would get a boost if there is connectivity.
Mr. Suleri described the Indian governments decision as one of a series of substantial small steps that will improve bilateral relations and regional stability.
All this will lead to the broader goal of SAFTA, where we should be looking at things like a made in South Asia tag instead of competing in producing similar products, Mr. Suleri said.
A statement issued by Indias Commerce Ministry said the government had reviewed its policy and decided to permit a citizen of Pakistan or an entity incorporated in Pakistan to make investments in India.
The statement said investments would not be allowed in defence, space and atomic energy, and all propositions would have to be notified to Indian authorities.
Official bilateral trade is a little more than $2 billion though unofficial trade through third countries is estimated at about $10 billion.
