Pakistan and India are likely to allow investment in each other’s countries, which, till now, has not been permitted.
“This is under consideration and is likely to be approved by both sides. The first step will be to decide investment on a case-to-case basis,” a Pakistan commerce ministry official told this newspaper. “This is part of the CBMs,” he added.
Pakistan, which is reluctant to give India MFN status, has no objection to joint ventures and “case-to-case investment” in the country, the official said. Though Islamabad has expressed reservations over investment by Indian companies as it could harm comparatively less competitive Pakistani industries, 50-50 investment by both Pakistani and foreign companies “will not endanger the local industry”, he said.