Only way forward is to increase eco ties with Pak: Sharma

Replying to a debate on demands for grants for his ministry, Commerce and Industry Minister Anand Sharma said Pakistan has promised that it will grant the Most Favoured Nation (MFN) status to India.

"Fahim (Pakistan's Commerce Minister Makhdoom Amin Fahim) had assured that they will also take steps to grant MFN status to India," he said.

The Minister said India needed to increase "economic engagement" with Pakistan as that was the only way forward for the two neighbours.

As regards the term MFN, which often evokes adverse comments in the context of India and Pakistan, Sharma said the terminology was evolved by the World Trade Organisation (WTO).

The Minister said that he led the largest ever business delegation to Pakistan and visited three cities with a view to enhancing the bilateral economic relations.

The statement comes amid efforts by both countries to normalise trade relations through a host of initiatives, including easing of visa norms for business persons.

Following Sharma's visit to Pakistan, Fahim came to India.

The direct bilateral trade between the two countries is very low at USD 2.7 billion, while the indirect trade is estimated to be about USD 10 billion. PTI CS RC AKK SMI