Pakistan Okays MFN Status for India

New Delhi: Pakistan decided to grant the Most Favoured Nation status to India to boost bilateral trade, by granting MFN status has the potential to raise bilateral trade from $2.6 billion to $6-8 billion in a few years, but Pakistan made it clear that the move would not in any way affect its stand on the Kashmir issue. After a lengthy discussion and a briefing by the Commerce Secretary, the Cabinet unanimously approved the Commerce Ministry's summary to grant Most Favoured Nation status to India," Information Minister Firdous Ashiq Awan told a news conference. The MFN status, which means that Pakistan will give trade treatment to India at par with its other partners, is likely to boost the bilateral economic ties. India had granted the MFN status to Pakistan way back in 1996. The issue of granting MFN status by Pakistan to India as mandated by the World Trade Organisation has been hanging fire since 1996 when India had accorded the status to its neighbour. Pakistan, however, refused to oblige linking the issue to the Kashmir problem. The Indian government welcomed the decision. "Just now Pakistani Commerce Minister Makhdoom Faheem has spoken to me and confirmed that the Pakistan cabinet has decided to grant MFN status to India. We deeply appreciate this positive gesture which underscores with clarity the wish of both countries to bring about a paradigm shift in mutual relations," Anand Sharma said in a statement. Awan, a senior leader of the ruling Pakistan People's Party, made it clear that the decision to give India MFN status was not linked in any way to Pakistan's support for the Kashmir issue. "Trade with India is a separate issue. It is a most important priority for Pakistan to continue its support for the Kashmir issue and the movement," With the new arrangement, Pakistan will allow imports of all items except a small negative list, replacing the current trade rule. Garment exporters in Pakistan have strongly supported the move saying it would help them get a grip in the fast-growing Indian market. Pakistan may also import electricity from India to help effortlessness shortages that disrupt power supply for 10 hours a day, causing widespread resentment.