Related Keywords: bilateral trade, Commerce and Industry Minister, direct trade, FDI, man-made filaments, MFN status, Pakistan and India trade, SEZ, transaction cost
Pakistan has not yet granted the most favoured nation (MFN) status to India while India granted the status way back in 1996. With Pakistan granting the MFN status to India, it will open new clear direct trade between the two countries and also help in reducing transactions cost.
According to Commerce and Industry Minister Nirmala Sitharaman, with the grant of MFN status the trade would then take place bilaterally at significantly lower cost. It will also restore Pakistan's international commitment under WTO of reciprocity to MFN status.
