India allows investments from Pakistan
India overturned its ban yesterday on foreign investment from neighboring Pakistan, the commerce ministry said, in a move designed to build goodwill amid a renewed push for a peace settlement.
"The government of India has reviewed the policy... and decided to permit a citizen of Pakistan or an entity incorporated in Pakistan to make investments in India," said a statement from the ministry.
|Wonder when the reverse will be permitted...|
A ban on investments in defense, space and atomic energy will remain and all propositions must be notified to the Indian government.
The decision to accept foreign direct investment from Pakistan was taken in April this year when the trade ministers of the nuclear-armed South Asian rivals met in New Delhi. They also discussed ways to ease visa curbs on business travel and the possibility of allowing banks from both countries to open cross-border branches.
The improved relations between the rivals stem from Pakistan's decision to grant India "Most Favoured Nation (MFN)" status by year end, meaning Indian exports will be treated the same as those from other nations.
In further progress, the neighbors opened a second trading gate in April along their heavily militarized border, boosting the number of trucks able to cross daily to 600 from 150.
Posted by: Steve White