In a decision that will significantly boost bilateral trade,the Pakistan cabinet has cleared the way for giving India most favoured nation status. While India granted Pakistan MFN status in 1996,Pakistan had failed to reciprocate,linking normalisation in trade to movement on other issues,especially Kashmir. Yet,the move,by which bilateral trade is expected to increase manifold from the paltry 2.6 billion at present,signifies more than a long-desired reciprocity and is a welcome strategic development. It marks a reversal of the Pakistan establishments reluctance to trade with India that dates back to the 1965 and 1971 wars. In fact,Pakistan Information Minister Firdous Ashiq Awans announcement indicated a rethinking of the terms of engagement with India by emphasising that the military is on board. This is,potentially,a big breakthrough. In the past,the so-called confidence-building measures have tended to be compartmentalised,with Rawalpindi keep-
ing aloof and depriving the peace moves of sufficient traction. India must therefore seize this moment.
In her statement,Awan said: This was a decision taken in Pakistans national interest and all stakeholders,including our military and defence institutions,were on board. Prime Ministers Singh and Gilani must clinch the moment by announcing new moves when they meet at the SAARC summit next week: not just by addressing issues related to visas and transportation links implicit in improving bilateral trade but also by using this momentum in the peace process to consider the next moves on various other tracks,like Sir Creek and transit rights through Pakistan.