India today said that it will allow Foreign Direct Investment, FDI from Pakistan, paving the way for industries from the neighbouring country to set up businesses in the growing Indian market. After meeting his Pakistani counterpart Makhdoom Amin Fahim in New Delhi today, Commerce and Industry Minister Anand Sharma said, India has taken in-principle decision as part of trade normalisation process to allow foreign direct investment from Pakistan. Mr. Sharma also said, procedural requirements are underway and they will be notified soon. Besides, talks are underway to allow banks from both the countries to open branches in each other's territory, the Minister said, RBI and State Bank of Pakistan are in favour of opening branches.
The Commerce and Industry Minister also said that India-Pakistan Business Council will be set up soon, to be co-Chaired by both the countries. On multiple entry business visas, Mr. Sharma said, there will soon be a formal signing of agreement, which will be for one year initially.
At present, India and Pakistan are engaged only in trade of goods, which has recently been liberalised.