The US has said that Pakistan's decision to grant the Most Favoured Nation – MFN status to India will help in enhancing trade and improving relations between the two countries.

US Under Secretary for International Trade Francisco Sanchez said this at a CII event in New Delhi yesterday. India had granted Pakistan MFN status way back in 1996, but Islamabad had refrained from reciprocating due to opposition from some trade lobbies and religious and hardline political parties.