Pakistan is moving towards granting MFN status to India: Zardari

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Pakistan is moving towards granting Most Favoured Nation-status to India 'despite some hurdles' as the two countries have made significant progress in trade cooperation, President Asif Ali Zardari said on Wednesday.

Zardari referred to the importance of regional trade while addressing a dinner hosted by him at the presidency to mark the 50th anniversary of Pakistan-EU relations and said his government had designated 2012 as the 'Year of Regional Trade and Economic Connectivity'.

"We have made significant progress on trade and economic cooperation with India. We are moving towards the grant of MFN-status to India despite some hurdles," Zardari told the gathering that included diplomats, senior Pakistani officials and the media.

Pakistan recently switched over to a negative list regime for trade with India, paving the way for the grant of MFN-status by next year. Commenting on the regional security situation, the President said a peaceful, stable, and prosperous Afghanistan is in Pakistan's best interest. Pakistan is ready to extend full cooperation to 'facilitate political reconciliation in Afghanistan', he said.

Pakistan is also actively engaged with Afghanistan to develop joint cooperative projects and the bilateral Transit Trade Agreement will give impetus to regional development and stability, he said.

In his address, Lars-Gunnar Wigemark, the European Union Ambassador to Pakistan, commended Zardari for his visit to India in April and the 'significant steps' taken by the Pakistani government over the past year to liberalise trade with India.

Wigemark said the new liberalised visa regime expected to be signed by India and Pakistan would have a "powerful confidence-building effect". He also lauded Pakistan's efforts to build a stronger relationship with Afghanistan. He noted that the European Union and Pakistan had finalised a new five-year engagement plan and that trade and development was at the core of their relationship.

The EU and Pakistan would now move towards closer political and security relations, he added. The two sides are already cooperating in countering piracy and would also focus on counter-terrorism, drug trafficking and non-proliferation, Wigemark said. "The EU is ready to send observers for the next polls in Pakistan if asked by the government and all political parties," Wigemark added.

The EU would also stand by Pakistan in its fight against violent extremism and militancy, the envoy said. Zardari said Pakistan has an important relationship with the EU based on shared democratic values and the principles of mutual respect, trust and cooperation.

Highlighting the importance of Pakistan-EU trade activities, Zardari urged the European grouping to provide better market access for Pakistani goods.

"We are grateful to the EU for extending a trade concession package in the aftermath of the floods and are hoping that it will become operational soon," he said.