Islamabad, Nov 2 (IANS) Pakistan Wednesday granted the status of 'Most Favoured Nation' to India and agreed to double bilateral trade from $2.5 billion to around $5 billion.
India had granted Pakistan the status in 1996 but Islamabad did not reciprocate. Ties between the two countries deteriorated after the Mumbai terror attack in 2008 for which Pakistan was blamed.
Wednesday's decision was taken at a cabinet meeting chaired by Prime Minister Yousuf Raza Gilani. It said the move would help expand bilateral trade relations, Xinhua reported.
Pakistan would now loosen import restrictions from India. At present, Islamabad allows import of only 1,946 items from New Delhi. India does not permit trade in 850 items with Pakistan.
Visa policies between the two countries would be made lenient, and both sides would also remove other restrictive practices, Xinhua said.
The Pakistan Readymade Garments Manufacturers and Exporters Association welcomed the decision, saying this would help Pakistan gain a foothold in one of the fastest growing markets in the world.
But the Pakistan Automotive Manufacturers Association said Pakistan should be cautious as both countries were rivals in the automobile industry.
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