Reserve Bank of India has allowed Indian entities to make direct investment in Pakistan, giving push for bilateral trade and investments.
It has now been decided that the overseas direct investment by Indian Parties in Pakistan shall henceforth be considered under the approval route, RBI said in a notification on Friday.
The move comes days after India allowed investment from Pakistan. RBI said it will make amendments to the Foreign Exchange Management (Transfer or Issue of Any Foreign Security) Regulations, 2004, to incorporate changes. Bilateral trade between the neighbours stood at about $3 billion and is expected to reach $6 billion in the next three years. Earlier, Pakistan had expressed concern over certain issues related with investments from India.
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