Pakistan on 2 November 2011 decided to grant India most-favoured-nation(MFN) trade status. The Pakistani cabinet voted unanimously to grant most-favored-nation status to India, which in effect gives Indian businesses lower tariffs and fewer trade barriers. It will allow Pakistan to start removing formidable barriers to sales of Indian goods.
India had granted Pakistan most favoured nation (MFN) status in 1996. However, Pakistan had shown reluctance to reciprocate until the dispute over Kashmir was resolved.
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