Pakistani investors likely to get chance of investment in India

In a bid to show a good will gesture, India has decided to permit direct foreign investment from Pakistan.

Ahead of opening a trading post on the border in the latest sign of thawing economic relationships, Anand Sharma, the Indian trade minister claimed that they were mulling to allow Pakistani investors in India.

While addressing a press conference with Pakistani counterpart, Sharma observed, “India has taken an in-principle decision, as a part of the process to deepen our economic engagement, to allow foreign direct investments from Pakistan in India”.

Pakistani business tycoons, under the existing rules, cannot directly make investment in Indian markets. Although investment flows are unlikely to increase, the step will go some way to addressing reservations of the Pakistani businessmen that neighboring country places too many bars on them.

In order to promote Pakistani products, currently more than 600 Pakistani businessmen are in New Delhi, the Indian capital, to attend a trade festival.

Despite some domestic opposition, the government of Pakistan on directives of President Asif Ali Zardari vowed last November to grant India most favored nation (MFN) status. This decision ended restrictions that require most products to move via a third country.

India wide and large praised the step and offered Pakistan to come on to the table of negotiations. The two neighboring states are currently concentrating on resolving economic problems before moving on to more obstinate issues such as the disputed region of Kashmir and controversial dams.

The Indian Trade Minister informed the media persons that an agreement to ease restrictions on visas for Pakistani businessman was almost in final phases.

Anand Sharma and Makhdoom Amin Fahim, the two trade ministers will inaugurate an expanded border trade terminal at Wagah, between the Indian city of Amritsar and Pakistan’s Lahore.

A study published this week by Indian industry chamber ASSOCHAM claimed that the border crossing is expected to assist bring trade to $8 billion annually from the existing level of $2.6 billion, having capacity to handle about 600 trucks a day.

Short URL: https://www.newspakistan.pk/?p=18919

Posted by Faisal Farooq on Apr 13 2012. Filed under Business, Latest News, National, Pakistan. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.