"After a lengthy discussion and a briefing by the Commerce Secretary, the Cabinet unanimously approved the Commerce Ministry's summary to grant Most Favoured Nation status to India," said Firdous Ashiq Awan, Information Minister.
Pakistan was granted the MFN status by India way back in 1996. India-Pakistan trade in 2010-2011 stood at $2.6 billion.
"The decision will lead to economic benefits and it is in the national interest," she said adding that granting the MFN status to India would affect Pakistan's take over the issue of Kashmir.
During the meeting, Prime Minister of Pakistan, Yousuf Raza Gilani along with several other ministers raised concerns over the issue like Kashmir, said Awan.