Pakistan is soon likely to offer the much-awaited Most Favoured Nation status to India soon, news reports quoting European sources said on Saturday.
The issue of MFN status to India would be at the top of trade negotiations between the two countries, as India had been demanding this as a member of the World Trade Organisation, reports said.
The move followed after European Union trade leaders supporting MFN status, pleaded with Islamabad that it will be in the interest of both states to remove all the trade barriers forthwith.
Sources in Brussels told Pakistan's The News that after the parliamentary ratification of the EU-Pakistan Third Generation Trade Cooperation Agreement, trade officials at the European Commission are closely watching the trade relations between New Delhi and Islamabad.
The News said that the Pakistani mission to the Geneva-based WTO had also recently advised the government that there is no harm in giving MFN status to India and "it is the time to move forward positively on this issue."
"Indian and Pakistani goods were indirectly reaching each other's markets via Dubai and Singapore due to restrictions on direct trade and it will be in the interest of both the countries to remove all the trade barriers as early as possible," the Pakistani paper quoted a European trade official as saying.
Pakistan's permanent representative in the WTO, Dr Manzoor Ahmed, reported The News, had also assured the EU trade commissioner that Pakistan would shortly take the necessary initiative in opening up trade with India.
India has officially ruled out moving to the WTO against Pakistan for not granting MFN status as Indian diplomats have informed the European trade officials that India wanted Islamabad to do so without any 'external pressure.'
Pakistan and India are likely to resume talks shortly on various issues, including trade.
"According to trade and economic experts in Brussels any delay in granting MFN status to India will not be in the interest of Pakistan as WTO regime will come into force at the end of this year, under which no country will have to wait to seek the MFN status," The News reported.
That way, all trade barriers will be removed from January 1, 2005 and India and Pakistan will automatically have reciprocal MFN status. Pakistani trade official in Europe have assured the European authorities that the government is actively considering giving MFN status to India, said The News.
