'Pakistan to gain a lot from MFN status to India'

New Delhi, Nov 24 (IANS) Pakistan has lot to gain from the most favoured nation (MFN) status granted to India, former governor of State Bank of Pakistan Salim Raza said here Thursday.

He said it will not only boost trade between the two countries but would also help promote regional cooperation.

'The recent dialogue between India and Pakistan is very encouraging. With the MFN status to India, Pakistan has lot to gain,' he said.

Raza said because of the MFN status to India, regional cooperation, particularly with countries like Turkmenistan, Iran and Afghanistan, has a good chance of going ahead than in the past.

'When trade between the two countries would flow, other issues of common concern would also progress,' Raza said at a lecture organised by Jamia Millia Islamia University in collaboration with the Jinnah Institute and the Australia-India Institute.

Currently, India-Pakistan trade is estimated at $2.5 billion. 'We have been sitting on this world of opportunities since 1991-92,' he said, adding that 'cooperation in the developmental works in Afghanistan, which have regional implications, would further improve relations.'

'The commercial relationship between the two coutries will help develop the whole region. Pakistan's natural location in the east, west, north and south are trade corridors.

'Pakistan can offer low cost labour for packaging, storing etc.' Further, this economic activity could expand to Afghanistan, Iran and up to Turkey in the near future.

'Between Iran, Turkey and the South Asia, it is a $3-trillion economy, and Pakistan's share is only about three percent,' he said, adding that there is a lot of scope.

'It is part of the MFN plan. Once the Wagah border is open, trade will begin to flow, which will then expand beyond Pakistan.'

He said in the next three to four years, agriculture will be a major success story in Pakistan. Currently, it contributes about 25 percent of the GDP, industry 24-25 percent, while the rest is contributed by the services sector.

Raza said several positive developments had taken place in the past couple of months in the country. The 18th amendment to the constitution has brought about over 100 changes, including that of the powers of the president, the prime minister and the judiciary.

The president's power to impose emergency has been curtailed, and nomination of judges by a judicial commission has been introduced. These changes have brought a balance between different departments of the government, he said.