After LoC tension, Pak says no MNF-status to India for now

Amid a spike in tensions over clashes along the Line of Control, Pakistan said it has no immediate plans to give Most Favoured Nation-status to India as there is a need to normalise bilateral relations.

Pakistan Finance Minister Ishaq Dar, a close aide of Prime Minister Nawaz Sharif, said the government was not considering any proposal to grant MFN-status to India. "Giving MFN-status immediately is not under consideration," Dar told Geo News channel on Monday night.

"There is no consideration as of now. We need to normalise other things," he said in response to a question on whether MFN-status would be granted in the wake of an increase in tensions over incidents along the Line of Control.

Pakistan failed to meet a deadline to give MFN-status to India in January as part of efforts to normalise trade relations. India granted MFN-status to Pakistan in 1996.

Dar said "some actors" in India were trying to "sabotage" a proposed meeting between Prime Minister Sharif and his Indian counterpart Manmohan Singh on the sidelines of the United Nations General Assembly in New York in September so that the situation in the region does not improve.     

"If there is a conspiracy to spoil relations and scuttle the meeting, it is regrettable. We can't change neighbours and so, we should remain peaceful," he said.

Dar acknowledged that peace in the region and Pakistan's economic development were inter-related. "That is the future. If we can promote trade, per capital income will increase, poverty will decrease and there will be GDP growth," he said.

Relations between India and Pakistan have been strained after India accused the Pakistan army of killing five of its soldiers in an attack along the LoC. The charge was rejected by Pakistan.

The foreign office on Monday summoned Indian deputy high commissioner Gopal Baglay to protest "continuous ceasefire violations" along the LoC. It claimed a civilian was killed in firing by Indian forces at Rawalakot.