Islamabad: Pakistan has linked granting of Most Favoured Nation (MFN) status to India to a "sustainable political dialogue" even as India made a host of proposals to Islamabad to improve bilateral trade on the first day of the two-day talks on Economic and Commercial Cooperation.

"Pakistan is ready to consider MFN status for India along with other issues if sustainable political dialogue process starts to resolve all outstanding issues between the two countries," Pakistan's Commerce Minister Humayun Akhtar told Indian Commerce Secretary Deepak Chatterjee yesterday (Aug 11, 2004).

Akhtar made these remarks when Chatterjee, who heads the Indian delegation at the trade talks, called on him along with Indian High Commissioner to Pakistan Shivshankar Menon this evening, Pakistan's official APP news agency said.

India has already granted MFN status to Pakistan under the SAARC (South Asian Association for Regional Co-operation) framework and is awaiting Pakistan to reciprocate.

The Pakistani Minister also emphasized that there must be a level playing field available to Pakistani businessmen so that trade might increase for the benefit of both the countries.

The MFN issue figured prominently in the first of the two-day trade talks, being held under the Composite Dialogue process.