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In order to strengthen the bilateral economic relations, India has allowed foreign direct investment from Pakistan, Indian Commerce and Industry Minister Anand Sharma said on Friday. Emphasising the need to increase economic engagement with the neighbouring countries, Sharma said: “We have allowed Indian investments in Pakistan and Pakistan’s investment, whatever is the amount, to come to India.” He said that without engaging with Pakistan, South Asian economic integration would not be possible.
“We are clear that without engaging with Pakistan, South Asia Free Trade Agreement (SAFTA) cannot move forward,” he said at a FICCI function. The minister said that in the last one year, trade ties between India and Pakistan have moved forward.
To allow investments from Pakistan, the Indian Department of Industrial Policy and Promotion (DIPP) had sent a proposal to the Finance Ministry for changes in Foreign Exchange Management Act (FEMA) to allow FDI from Pakistan.
As per the current FDI policy, a non-resident entity, other than a citizen of Pakistan or an entity incorporated in there, can invest in India. The Government had earlier allowed investments from Bangladesh under the FIPB route.
Further, Sharma said that Chinese businessmen are also interested in investing in India.
“We will be encouraging and welcoming Chinese investments,” he added.