Trade bodies of India and Pakistan have decided to sign a pact for boosting trade and economic relations. This comes in the backdrop of Islamabad has agreeing in principle to grant most favoured nation – MFN status to New Delhi to normalise trade ties.

Federation of Indian Export Organisation on Wednesday said it will be signing a memorandum of understanding with Federation of Pakistan Chamber of Commerce & Industry to this effect.

Its Director General Ajay Sahai said the Federation is also planning to organise a buyer-seller meet in Karachi.

After the Pakistan government mandated its Commerce Ministry on 2nd of this month to normalise trade relations with India by granting it the MFN status, New Delhi said Islamabad has already started the process.