Pakistan's decision to give India Most Favoured Nation (MFN) status is being misconstrued though it is only aimed at ensuring that there is no discrimination in bilateral trade, Prime Minister Yousuf Raza said on Sunday.

"People have not understood the abbreviation MFN. You think this Most Favoured Nation becomes 'most favourite friend'. The real meaning is that there will be no discrimination," Gilani said while interacting with journalists during a private visit to Pir Jo Goth in southern Sindh province.

"When Pakistan was formed and Muhammad Ali Jinnah was the Governor General, this same status was given to India. We have such relations with 100 countries. This means India would be one of them," he added.

Gilani said the federal cabinet had allowed the Commerce Ministry to negotiate with its Indian counterpart on the issue of trade balance. The government will never compromise on the country's national interests while taking steps like giving India MFN status, he said.

He noted that since his government came to power in 2008, trade across the Line of Control had been recorded at Rs 15 billion. The annual trade between China and India, despite their border dispute, was to the tune of USD 60 billion, he pointed out.

Against the decision

Several extremist groups, including the Jamaat-ud-Dawah, have opposed the government’s decision to give MFN status to India by the end of the year. They have threatened to launch protests if the government goes ahead with the move.

Following talks between Indian Commerce Minister Anand Sharma and his Pakistani counterpart Makhdoom Amin Fahim in Islamabad last week, the two sides agreed to switch over to a negative list regime for trade by the end of February.

Political stability to Pak

In response to a question, Gilani said the completion of the five-year mandate by parliament and the government would bring political stability to Pakistan.

"Conspiracies were hatched against every democratic government in the past. If the governments in the past were allowed to complete their terms, the situation would have been far better," he said.

The prime minister did not rule out the possibility of early elections, saying the issue could be discussed after polls to the Senate or upper house of parliament in March and the presentation of budget in May.

"I do not rule out it," he said.

An independent Election Commission had been guaranteed under the 20th constitutional amendment, which is currently before parliament, and this will ensure free, fair and transparent elections, Gilani said.

The amendment also provides for establishing caretaker governments at the centre and in the provinces in consensus with the opposition before the holding of elections, he said.

On Balochistan

Asked about the situation in Balochistan province, which has been affected by violence, Gilani said he had called for convening conference of all political parties to discuss this issue. This conference will enable the government to discuss and address the issues of Balochistan through collective wisdom, he added.

In response to another question about the situation in Afghanistan and talks with the Afghan Taliban, Gilani said Pakistan would support and facilitate any Afghan-led and Afghan-owned peace process.

Gilani referred to Afghan President Hamid Karzai's visit to Pakistan last week and said the reconciliation process was discussed. Karzai was assured of Pakistan's full support to an Afghan-led peace process, he added.