‘India may allow investments from Pakistan’
By Iftikhar Gilani
NEW DELHI: India may allow Pakistani companies to invest in the country once the security improves in the region, a state minister said on Monday.
Currently, India does not allow foreign direct investment (FDI) from Pakistan due to security considerations. While a similar restriction was placed on investment from Bangladesh, New Delhi allowed FDIs from Dhaka a few months ago, giving approval on a case-by-case basis only.
"One hopes that once the political situation eases, we could consider a similar dispensation for Pakistan as well. There are undoubtedly security considerations for Pakistan, but these can be handled on a case-by-case basis," Minister of State for Commerce and Power Jairam Ramesh told reporters.
He said such a step would help regional integration in South Asia. "We should consider, subject to security considerations, liberalising investments from Pakistan," he said.
Some Indian Information Technology companies have investment plans but "right now the situation in Pakistan is not conducive", he said.
He said an FDI approval to Pakistani firms could be granted through the Foreign Investment Promotion Board and not through the automatic channel. Referring to the cross-LoC trade set to begin from October 21, Ramesh said, "It is a huge confidence building measure."
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