Pakistan may allow Indian investment

The Pakistan government has signalled its readiness to allow Indian investment in various sectors by unveiling measures to encourage India-based firms to set up units in the country for making CNG buses.
In a significant shift in stance, Pakistan unilaterally included measures in its new trade policy to encourage Indian investment for manufacturing CNG buses. The measures allow the import of test consignments of CNG buses by any Indian manufacturer who makes a firm commitment to set up units in Pakistan.
An official in the Board of Investment told the Dawn newspaper there is no law that could bar Indian investment in Pakistan.
Pakistan has a liberal investment policy, but the official said both countries generally discouraged bilateral investments. Through the move on the CNG buses, the Pakistan government has signalled its readiness to "embrace Indian investment in other sectors", the official said.
The Pakistan government has invited at least three Indian companies -- Tata, Reliance and Essar -- to a meeting of potential investors in the power sector to discuss the development of the Thar coal power project. The meeting is due to be held late July or early August.
Pakistan's efforts at liberalising trade with India are in line with ruling Pakistan People's Party (PPP) co-chairman Asif Ali Zardari's assertion that the new government wants to improve economic relations and will not allow the Kashmir issue to come in the way of greater economic contacts.
Meanwhile, Pakistan has diverted global trade worth over USD 4.1 billion towards India following the inclusion of 438 new importable items in the positive list over the past 10 months.