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India not granted MFN status, says Gilani

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India not granted MFN status, says Gilani


Prime Minister Yusuf Raza Gilani has made it clear that Pakistan has not granted the Most Favoured Nation status to India, saying the Commerce Ministry has only been tasked to move forward on the issue in bilateral negotiations.

“The Cabinet has only given its approval in principle to move forward on the issue (of MFN) and permitted the Ministry of Commerce, which is actively engaged in trade talks with New Delhi, to negotiate with it trade-related issues,” Mr. Gilani told reporters at his home in Lahore on Friday night.

“We will give it the go-ahead if the situation is quite favourable and in the national interest. Otherwise, proceedings on it would be withheld,” the Premier was quoted as saying by the media.

Mr. Gilani’s remarks came against the background of a flip-flop by the Pakistan government on the issue of whether India had been granted MFN status.

Information Minister Firdous Awan had announced on Wednesday that the Cabinet had “unanimously approved” a proposal to give India the MFN status.

The Foreign Office subsequently clarified the Cabinet had only taken an in-principle decision on the issue and both countries would have to work towards the goal in further engagements.

According to one media report, Mr. Gilani said during his interaction with the reporters that the MFN issue does not involve the army.

The Premier was quoted by The Express Tribune as saying that only the business communities and stock exchanges of Pakistan and India are “legitimate stakeholders” in the issue and both were “on board” along with the parties in the ruling coalition.

However, during her news conference on Wednesday, Information Minister Awan had said that all stakeholders, including the military and defence institutions, were “on board” on the MFN issue.

The issue of normalising trade ties also figured in Foreign Minister Hina Rabbani Khar’s consultations yesterday with top military officials, including ISI chief Lt Gen Ahmed Shuja Pasha.

Mr. Gilani said the Commerce Ministry would have to make important decisions independently in bargaining with India over trade policy and hence it had sought the Cabinet’s go-ahead.

He contended the Cabinet did not have to refer decisions made on the MFN issue to Parliament.

“We can brief Parliament over the Cabinet’s decision of going ahead with MFN, but according to my point of view it is not necessary. Only Cabinet approval is necessary to negotiate with other countries,” he said.

“Parliament would be briefed at an “appropriate time”, he added.

Mr. Gilani said liberalisation of trade with India would benefit Pakistan’s economy.

“It does not mean that we have given up our stand on other issues, including Kashmir. Look at the rising trade volume between China and India despite their border disputes,” he noted.

Mr. Gilani said he had persuaded his Indian counterpart Manmohan Singh to resume the composite dialogue on all issues, including Kashmir, after the peace process was stalled in the wake of the 2008 Mumbai attacks.

“I told Dr Manmohan at our meetings in Sharm el-Sheikh, Thimphu and Mohali that terrorists were common enemies of both countries and we should not let one incident hold the whole peace process as hostage,” he said.

Mr. Gilani said all partners in the PPP-led coalition did not have “any objection or concern” over strengthening trade ties with India.

He claimed that the parties opposing such moves also now “wanted the same or even a step farther”.

The Hindu : News / International : India not granted MFN status, says Gilani
 
Well I did say when this was was first mooted that it was not all that it was made out to be.
 
:woot: :woot:

LAHORE / KARACHI: Prime Minister Yousaf Raza Gilani said on Saturday that the government was committed to granting Most Favoured Nation (MFN) status to India and will not backtrack on the decision.
Speaking to the media in Kala Shah Kaku, Gilani said that the government had mandated the Ministry of Commerce to hold talks with its Indian counterpart to complete formalities.
The prime minister made it clear that the term most favoured nation should not be misunderstood, as it meant treating India at par with other countries in trade.
(Read: Across the borders: ‘MFN status to India alone not sufficient to promote trade and investment’)
Gilani said that India had enjoyed MFN status from 1947 to 1965 and it had restored Pakistan’s status in 1995, but Islamabad had not.
He said that Pakistan would never compromise on national interests and was committed to resolving all outstanding issues, including Kashmir, with India through talks.
‘India fast growing economy, neighbours can benefit from it’
Indian High Commissioner to Pakistan Sharat Sabharwal, welcoming the MFN status to his country, said that India is a fast growing economy and neighbouring countries can benefit from it.
Speaking during his visit to the Karachi Chamber of Commerce and Industry (KCCI), Sabharwal said that there should be no doubt that India will treat Pakistan the same way it treats other trading partners.
He said significant trading opportunities existed for both countries if the MFN is fully explored.
The Indian High Commissioner said that trade between Islamabad and New Delhi can rise to $6-10 billion a year.
He said secretary level talks will soon be held to resolve any issues that may halt trading prospects between the two countries.

Government committed to granting India MFN status: Gilani
 
From what I remember, the FM initially made an agreement in principle/verbally. And now, the PM has not said India will never be granted MFN status. He just said India hasn't been granted MFN status, & Pakistan is committed to giving India that.
 
India expects positive Pakistan decision on MFN

NEW DELHI/ISLAMABAD: India Saturday hoped Pakistan's decision to grant MFN status to it will not take long to become operational despite the Pakistan prime minister's conflicting remark that the cabinet had only given "its approval in principle" to move forward negotiations on the issue.

"There is no time frame. We expect it will not take very long (to become operational)," Foreign Secretary Ranjan Mathai told reporters here when asked about confusing statements emanating from the Pakistan government on the issue of Islamabad granting Most Favoured Nation status to New Delhi that involves enlarging the basket of goods India can export to Pakistan.

Mathai stressed that, according to the information available through the Pakistan government, the Pakistan cabinet has approved the process of normalization of trade relations of which MFN is a part.

Mathai also read out the statement by Pakistan commerce ministry after the cabinet meeting which said, "It has the mandate to take forward the process of normalisation of trade relations between India and Pakistan, which would culminate in the observance of Most Favoured Nation (MFN) principle in its true spirit."

"The actual implementation would be a culmination of the normalization process which could take some time," he said, quoting the commerce ministry's statement.

Mathai also added that Pakistan's MFN to India will have positive impact on intra-region trade in South Asian Association for Regional Cooperation (SAARC).

After a cabinet meeting Wednesday, Pakistan Information Minister Firdous Awan had announced that it has been decided "unanimously" to grant MFN status to India. India had given Pakistan MFN status way back in 1996.

Prime Minister Manmohan Singh Friday welcomed it. "Better late than never. I welcome it," he had said.

However, since Islamabad's announcement there has been a spate of conflicting statements over the MFN, a politically sensitive issue which is being opposed by some influential right-wing sections in Pakistan which contend that trade relations with India should not be normalised till the Kashmir issue is resolved.

On Friday night, Pakistan Prime Minister Yousuf Raza Gilani complicated the issue. "The cabinet has only given its approval in principle to move forward on the issue (of MFN) and permitted the Ministry of Commerce, which is actively engaged in trade talks with New Delhi, to negotiate with it trade-related issues," Gilani told reporters in Lahore.

"We will give it the go-ahead if the situation is quite favourable and in the national interest. Otherwise, proceedings on it would be withheld," Gilani said, according to some reports in Pakistani media.

India is hoping that there will be greater clarity on the MFN issue when Prime Minister Manmohan Singh meets Gilani on the sidelines of the SAARC summit in the Maldives next week. The meeting is expected to take place Friday (Nov 11).

India expects positive Pakistan decision on MFN - The Economic Times
 
they have taken a very myopic view . if CBM are not acted upon , status quo will be maintained , i do not believe thats in Pakistan interest.
 
Pushback by the Army: How dare the "bloody civilians" think of controlling foreign policy.

Nothing more.

Tussles of this type will only grow in the coming months.

Late March next year VCheng, it will all come to light for everyone to see, but the civilian government will still be blamed. That will be the period to see the real face of media in Pakistan.
 

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