Pakistan's central bank has allowed two banks to open branches in India
as part of efforts to normalise economic and trade relations between the
two countries.
State Bank of Pakistan (SBP) Governor Yasin Anwar told the media that the National Bank of Pakistan and the United Bank Ltd had been given the "green signal" to operate in India.
In a major decision, India allowed investment from Pakistan
paving way for Islamabad to normalise bilateral economic ties by
implementing much-delayed Most Favoured Nation (MFN) status for New
Delhi.
India's move to allow Pakistani investments has been welcomed by businessmen on both sides of the border.
Earlier this year, Pakistan switched over to a negative list regime for
trade with India, paving the way for giving the Most Favoured
Nation-status to the neighbouring country.
However, recent
reports have indicated that Pakistan has decided to link progress in
normalising trade relations to the resolution of other issues, like the
Kashmir issue and the Sir Creek border dispute.
Trade between
India and Pakistan is worth a little more than $2 billion dollars and
the two sides have agreed to increase it to $6 billion dollars by 2014.
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