Pakistan to deny MFN status to India

ISLAMABAD—Pakistan is unlikely to give the Most Favoured Nation (MFN) status to India even after signing a proposed pact for promoting investments in the SAARC region, sources said on Sunday.
According to sources, India had sought MFN treatment under article four of the SAARC draft agreement. This means all previous bilateral or multilateral investment agreements would read into this pact. However, Pakistan contends that MFN should operate prospectively and proposed to exclude from the operation of the article, all bilateral and multilateral investment pacts signed prior to this agreement, sources added.
The South Asian Association of Regional Countries (SAARC) is currently negotiating an agreement on promotion and protection of investments within the seven member countries. India has granted the MFN status to Pakistan, but Islamabad has refused to accord a similar status to New Delhi. The two sides are also locked in a tussle over the implementation of South Asian Free Trade Agreement (SAFTA).—Agencies