India has in principle agreed to allow foreign direct investment (FDI) from Pakistan, a move expected to boost trade between the two countries, India’s Commerce and Industry Minister Anand Sharma said on Wednesday.
“During discussions, both sides agreed upon the desirability of promoting bilateral investments and removing impediments for such investments and to start the transition process for normalisation of trading of goods and services, including investment,” Sharma told Rajya Sabha, the upper house of parliament.
“The move is expected to enhance the commercial engagement and bilateral trade between India and Pakistan,” he said, according to the Indians Abroad News Service (INS).
Sharma said his ministry has requested the ministry of finance to amend the Foreign Exchange Management Act (FEMA) to allow FDI from Pakistan. Pakistan is the only country from where investment is not permitted in India.
Meanwhile, President Asif Ali Zardari said that granting the Most Favoured Nation (MFN) status to India was a paradigm shift in policy driven by the business sectors on both sides of the border.
The decision would reconstruct the region’s economies and increase its stability, he said while speaking at a dinner hosted by the Lahore Chamber of Commerce and Industry (LCCI) at the Presidency on Wednesday.
According to the Associated Press of Pakistan, the president said Pakistan has signed business investment treaties with many nations to boost business activities. The president said that Pakistan was committed to promoting an investor-friendly environment and it has much more to offer than bad news only.
Published in The Express Tribune, May 3rd, 2012.
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@Sunny: Not so soon....Lets keep the visa agreement in the backburner....
We dont want another David Headley planning an attack and then India stopping trade,FDI and Power export altogether...
Let the other 3 build to a level before we start relaxing the visa norms.....
Nice, now bigger Pakistani business groups who find investing in Pakistan a risky affair will divert their funding towards India. This investment will lead to creation of jobs and additional tax revenue for the government. Pakistani investors will reap higher returns in comparison to their investment in Pakistan. Win-win situation for both Pakistani investors and India.
why the people make comments on such moves? Even Kamran Khan Of GEO and may like him does not notice such developments. Our poor midea is very professional, balance in reporting and honest rather "Angles on earth". A Peshawary
Good Going, Hope to see liberal Visa agreement signed soon, i suggest try opening counslates in karachi and mumbai this will facilitate visits.