NEW DELHI: As Reserve Bank of India (RBI) notified its decision to approve foreign direct investment (FDI) from Pakistan, India Inc appreciated the move.
DS Rawat, secretary general of ASSOCHAM, said, “This will help in building confidence among Pakistani businessmen about India genuine interest in strengthening economic relations with Pakistan.”
RBI informed that FDI in sectors such as defence, space and atomic energy is prohibited. Although, Pakistan has not yet notified the sanctioning of the MFN status to India but has partially liberalised its trade regime with India.
According to the RBI statement, “It has now been decided that a person who is a citizen of Pakistan or an entity incorporated in Pakistan may, with the prior approval of the Foreign Investment Promotion Board, purchase shares and convertible debentures of an Indian company under FDI Scheme, subject to the terms and conditions specified.”
ASSOCHAM has proposed that Pakistan should liberalise its investment and trade regimes to permit more room for Indian investors and also exports into India.
Meanwhile, FICCI secretary general Rajiv Kumar said, “It is a great decision, now Pakistan should also implement the MFN status for India.”
Now, Pakistan's business community will be able to explore sectors such as cement, textiles and sports for investments in India. As India has given its approval for investment from Pakistan, India Inc is hoping that Islamabad to give the much delayed MFN status to New Delhi soon.