Pakistan Envoy Denies U-turn on MFN Status to India .

Amid contradictory statements from Pakistan on the most favoured nation (MFN) status for India, its high commissioner to New Delhi Shahid Malik on Friday denied that Islamabad had taken a U-turn on granting the MFN status.

"Let me correct you, there is no question of a U-turn about it," Malik said when asked if Pakistan was now ambivalent on granting the MFN status to India. He was speaking to reporters after meeting Home Minister P.Chidambaram.

But Malik steered clear of a commitment on Pakistan's actual decision and chose to be vague saying granting the status to India was part of a process that was underway to normalise trade relations between the two nations.

Prime Minister Manmohan Singh, who is in Cannes for the crucial G20 meet, welcomed Pakistan's decision to grant MFN status to India but said it should have been done long ago.

"I welcome the decision of Pakistan. I think it is nearly 17 years ago when India gave the most favoured nation status to Pakistan unilaterally and Pakistan has taken so much time," Singh said.

Despite Malik's clarification, India felt that powerful political and business lobbies in Pakistan may have forced its government to backtrack.

Sources said India has now adopted a wait and watch policy. Pakistan seemed to backtrack on the initial decision, sources said. The issue may now be discussed when the PM meets his Pakistani counterpart Yusouf Raza Gilani in Maldives on the sidelines of the SAARC Summit during November 10- 11. During that meeting New Delhi is expected to seek a clarification from Islamabad on the matter.

It is understood that business lobbies in Pakistan's Punjab province who deal with engineering and pharmaceutical products are opposed to MFN status that might be detrimental to their business interests.

Besides hardliners, there were members in the Pakistan cabinet who had objections to the grant of MFN status.This is despite the all-powerful Pakistani Army giving the green signal to the MFN status during commerce secretary Rahul Khullar's visit to Islamabad earlier this year.

Meanwhile, Pakistan foreign minister Hina Rabbani Khar on Wednesday held consultations with her country's top civil and military officials here on the dialogue process with India.

Malik's clarification came on a day the US state department has hailed Pakistan's move to grant MFN status to India.

"This is a very, very big deal, very important and could lead to really great economic opportunities for both India and Pakistan. We really applaud Pakistan and India for taking this concrete step to improve relations… the most tangible thing that they've done yet," a US state department spokesperson said.

Malik hinted that the visit of the Pakistan's commerce secretary to India could see a tangible movement on the MFN status front.

"The cabinet had mandated the ministry of commerce, which looks after these matters, to carry forward the process of normalisation of trade relations between the two countries. That process is on. The commerce secretary will be visiting India as part of the ongoing discussion and dialogue towards the middle of this month and he will take this process forward," Malik said.

Source : indiatoday.intoday.in