SRINAGAR, Aug 2: The ruling National Conference party has welcomed New Delhi’s decision to allow foreign direct investment (FDI) from Pakistan to boost bilateral economic relations saying it will bring a significant change and bridge the gap between the two countries.
“It’s a welcome step, this will help in bringing people of the neighbouring countries not only closer but also help the two developing countries economically,” NC general secretary Sheikh Nazir Ahmed said.
“The decision to permit a citizen of Pakistan or an entity incorporated in Pakistan to make investments in India is a bold and a positive step,” he said.
India on Wednesday overturned its ban on foreign investment from neighboring Pakistan in a move designed to build goodwill amid a renewed push for a peace settlement between the two neigbours. Both the countries are channeling their efforts into “trade diplomacy” in a bid to build enough trust to tackle the more troublesome issues that divide them, such as Kashmir.
Of late separatists in kashmir have been accusing Pakistan of diluting its stand on Kashmir to gain from ecenomic ties with India.
The decision to accept FDI from Pakistan was taken in April this year when the trade ministers of the nuclear-armed South Asian rivals met in New Delhi. They also discussed ways to ease visa curbs on business travel and the possibility of allowing banks from both countries to open cross-border branches.
The improved relations between the rivals stem from Pakistan’s decision to grant India “Most Favored Nation” status by year’s end, meaning Indian exports will be treated the same as those from other nations.
In further progress, the neighbors opened a second trading gate in April along their heavily militarized border, boosting the number of trucks able to cross daily from 150 to 600.
