Monday, April 18 2005 08:19 Hrs (IST) - World Time -

New Delhi: In a major step to boost bilateral economic ties, India and Pakistan yesterday (Apr 17, 2005) decided to set up a Joint Business Council (JBC) of industry associations and Islamabad indicated it may move forward towards giving Most Favoured Nation (MFN) status to New Delhi.

This was decided during a 40-minute meeting between Commerce Minister Kamal Nath and his Pakistani counterpart Humayun Akhtar Khan on the sidelines of Summit level talks between Prime Minister Manmohan Singh and Pakistan President Pervez Musharraf.

"We have agreed to set up a JBC to facilitate interaction amongst business and to strengthen economic ties and promote trade," Nath said, adding the Chambers of the two countries would meet now to work out the nitty-gritty of setting up the Council.

Nath also announced that the directive of Singh, New Delhi has agreed to lift any "perceived" non-tariff barriers coming in the way of Pakistani trade to India.

The two Ministers also agreed that the Joint Study Group (JSG) that has already been established between the two countries would meet in June to sort out specific difficulties coming in the way.

Nath said during the Summit level talks, it was agreed that all hindrances must be removed and non-tariff barriers dismantled as soon as possible to have a meaningful open door policy.

Endorsing Nath's view, Khan said that the specific details of non-tariff barriers would be spelt out at the time of JSG meeting in June in Islamabad.