Pakistan grants India 'Most Favoured Nation' trade status

Reuters: Pakistan’s Cabinet unanimously decided on Wednesday to grant India Most Favoured Nation status to liberalise trade between the two South Asian countries, Pakistan’s Information Minister said, a move that could improve ties between the rivals.

“Today after an extensive briefing by the Commerce Secretary, the Cabinet unanimously decided to grant India Most Favoured Nation status,” Minister Firdos Ashiq Awan told a news conference.

Trade has long been tied to political issues between the hostile neighbours, who have fought three wars since independence from Britain in 1947. There are hopes that progress in trade ties will help bolster a fragile peace process, which the two resumed in February. India earlier broke off talks after the November 2008 attack on Mumbai by Pakistan-based militants that killed 166 people.