New Delhi has welcomed Pakistan’s decision to award Most Favoured Nation Status to India. It said, the move will also help improve political ties between the two neighbours. Commerce and Industry Minister Anand Sharma termed it as a positive gesture. Mr Sharma spoke to his Pakistani counterpart Makhdoom Amin Fahim immediately after the decision taken by the Pakistani Cabinet.

He said, when bilateral economic engagement improves, it brings prosperity and growth to both the partners. India has already extended most favoured nation status to Pakistan. The status reduces tariffs and increases import quotas.

Pakistan Information Minister Firdous Ashiq Awan said, this will bring economic benefits to Pakistan and this decision has been taken in the national interest.