MFN status to India: Pakistan's own interest to be safeguarded prior to decision, National Assembly informed

The National Assembly was informed on Thursday that as member of World Trade Organisation (WTO), Pakistan has given Most Favoured Nation (MFN) status to all its trading partners sans India and Israel. Responding to questions in the house, Minister for Textile Industry Makhdoom Shahabuddin on behalf of commerce minister said that the cabinet has decided in principle to grant MFN status to India but its details are being worked out between the two countries.
The MFN status has not been given a final shape yet, he said, adding that Pakistan's own interest would be safeguarded before taking the decision. He pointed out that India gave this status to Pakistan several years back but it could not yield any meaningful benefit to the country due to tariff and non-tariff barriers by India.
"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," he explained.
He said Commerce Minister Makhdoom Amin Fahim on his return from visit to Turkey would make a policy statement on the issue of MFN status to India. Replying a question, he said no facility has been extended to India in the Afghanistan-Pakistan Transit Trade Agreement (APTTA).
Foreign Minister Hina Rabbani Khar said the Federal Cabinet decided in principle about normalisation of trade ties with India and grant of MFN status would be part of that process. "The grant of MFN status only means that we should have no discriminatory tariff regime or non-tariff barriers for trade with that country", she added.
Khar said that SAARC could become a force to be reckoned with provided there is normalisation of political and other relations among the member states. To another question, she said Pakistan is opposed to creation of new centres of privilege by expansion in permanent membership of the UN Security Council. Pakistan is constantly advocated for expansion in the non-permanent membership category of the council, she said, adding that the very notion of permanent membership negates the essence of democracy and accountability.
The minister said that Pakistan advocates to reform in the UN system based on the principle of sovereign equality of member states. We want reforms that we lead to a more united and strengthened United Nations. Replying to a question, Khar said bilateral trade between Pakistan and United States increased by about twenty-two percent from 2.5 to 2.88 billion dollars during first two quarters of the current year.
She said that Pakistan and Iran have committed to raise the annual bilateral trade from 1.5 billion to 10 billion dollars in due course of time. "There is potential for increased trade between Pakistan and Yemen which stands at hundred million dollar", she added.
Khar told the house that Egypt has invested around two point five billion in telecom, construction and hostelling in Pakistan while Pakistani businessmen have invested over $50 billion in Egypt mainly in textile business. "The two countries have agreed to enhance co-operation in 21 sectors including trade, food and beverages, investment, tourism, software technology parks, cement manufacturing, oil and gas exploration, power generation, agriculture, health and automotives", she concluded.