There may be a lot more to the news of India allowing Pakistani investment within its borders, than meets the eye immediately. The decision has been met with mixed response from the investors in Pakistan a day after the Indian Ministry of Commerce decided to lift the investment barrier from Pakistani investors, except in the fields of atomic energy, defence and space. Pakistani investors and banks are still unclear about the conditions of such investment and the overall effects of the decision will be largely determined by the intricate conditions following such a move, as in the case of India’s grant of MFN status to Pakistan in 1996.
Earlier this year Pakistan had moved to grant India MFN status on yearly basis. On the face of it, India had taken the positive step of befriending Pakistan 16 years earlier than Pakistan had done. Continue reading