After a meeting with Pakistan counterpart Makhdoom Amin Fahim, Commerce and Industry Minister Anand Sharma said that "India has taken the in-principle decision as part of trade normalisation process to allow foreign direct investment from Pakistan.... Procedural requirements (for FDI from Pakistan) are underway. It will notified soon."
"RBI and State Bank of Pakistan are in favour of opening branches..." each other's territory, he added.
"There has been progress in allowing banking services from both sides. In-principle we have agreed," said Fahim.
Lot of Pakistani industries and banks are ready to establish their business in India and it is possible only when FDI is allowed. India-Pakistan Business Council will be established soon, Sharma added.