Pak parliamentary panel endorses MFN status to India

ISLAMABAD: A Pakistani parliamentary panel on Kashmir has endorsed the government's decision to give Most-Favoured Nation ( MFN) status to India to normalise bilateral trade relations, a media report said today.

A meeting of the Kashmir Committee was held at the Parliament House here yesterday under the chairmanship of Maulana Fazlur Rehman which was attended by Commerce Minister Makhdoom Amin Faheem, Secretary Commerce Zafar Mahmood and officials of the foreign ministry, The Nation reported.

The committee endorsed the decision of the government to give Most-Favoured Nation status to India and asked the ministries of foreign affairs and commerce to keep the Kashmir issue on priority during negotiations with India on trade and confidence-building measures.

Faheem assured that MFN decision would not affect Pakistan's stand on Kashmir.

The Pakistan Commerce Secretary assured the parliamentary panel that a sufficient level of protection would be ensured for domestic industries before completing the process of trade liberalisation with India and granting it MFN status.

The Commerce Ministry will make a "transparent presentation to the Cabinet in February for a final decision on MFN", Mahmood said.

Indian exports to Pakistan are currently worth USD 1.6 billion dollars and Pakistan's exports to India are worth USD 500 million.

Some members of the parliamentary committee questioned the government's move for de-linking trade liberalisation with India from "core political issues".

The Commerce Secretary admitted that after granting MFN-status, the trade balance will remain in favour of India.

He said a widespread campaign will be launched soon to inform domestic industries of challenges and opportunities in the post-MFN trade regime with India.