Saturday, 18 February 2012 13:12
NEW DELHI: In a major step forward towards normalizing business ties, Indian government plans to bring changes in Foreign Exchange Management Act (FEMA) to allow investments from Pakistan, a senior government official said.
"Commerce ministry has sent a proposal to the Finance ministry for change in FEMA rules to allow investments from Pakistan," a senior Indian official who is accompanying Commerce & Industry Minister Anand Sharma on his official trip to Pakistan was quoted as saying by manaoramaonline.com. Pakistan is the only country from where investment is not allowed in India.
An Indian Commerce & Industry ministry official, who does not want to be named, said investments from Pakistan could be allowed by a change in the FEMA regulations.
"It can be done by simply issuing a notification," he was further quoted as saying. All foreign exchange transactions in India are governed by FEMA regulation, which came into force in 2000. This ...