India has in-principally agreed to allow Foreign Direct Investment (FDI) from Pakistan, the Commerce, Industry and Textiles Minister, Mr Anand Sharma, said on Friday.

This forms part of the process to deepen the bilateral economic engagement, he said. The move is expected to result in more Pakistani companies setting up businesses in India.

Only procedural requirements are left regarding permitting FDI from Pakistan, Mr Sharma said, adding that these will be notified soon.

Both countries will shortly permit multiple entry business visas, the Minister said.

“There will be a formal signing of agreement (on multiple entry business visas) soon. It will be for one year initially,” he said.

The two countries are also looking at cooperating in tourism, hospitality and education.

Besides, Mr Sharma said an India-Pakistan Business Council will be constituted shortly and it will be co-Chaired by both sides.

Mr Sharma was speaking after a meeting with his Pakistani counterpart Makhdoom Amin Fahim.

India and Pakistan are also holding talks to permit banks from both the countries to launch branches in each other’s territory, Mr Sharma said. “The Reserve Bank of India and (its Pakistani counterpart) State Bank of Pakistan are in favour of opening branches,” the Minister said.

To this Mr Fahim said, “There has been progress in allowing banking services from both sides. In-principle we have agreed.”

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