ISLAMABAD: Adviser to Prime Minister for Commerce, Textile, Industry and Investments, Abdul Razak Dawood, clarified on Tuesday that the government has no immediate plans to grant Most Favorite Nation (MFN) status to India.

His remarks came during the post-inauguration media talk at the International Cement Conference and Exhibition in Lahore.

According to the World Trade Organization rules, every member of the WTO is required to accord the MFN status to other member countries. While India has already granted MFN status to all WTO members, including Pakistan, Islamabad has yet to award the MFN status to Delhi.

Under the MFN status, WTO member countries are obligated to treat other member nations in a non-discriminatory manner, especially regarding customs duty and other levies. According to the Press Trust of India (PTI), bilateral trade between the two countries stood at a mere $2.28billion in 2016-17.

Both countries maintain long lists of sensitive items on which no tariff concessions are granted. Pakistan has a list of 936 items on which an 18 percent tariff applies to imports from all SAFTA countries. India has a list of 25 items, which extends to 64 items for Pakistan and Sri Lanka.

Pakistan maintains a list of 1,209 items that cannot be imported from India, usually brought in via the United Arab Emirates.

According to a recent report released by the World Bank, “A Glass Half Full: The Promise of Regional Trade in South Asia,” if Pakistan and India were to maintain better relations, trade between the two neighbors could reach $37 billion.

Earlier this year, however, India snubbed Pakistan’s efforts to hold talks on the sidelines of the UN General Assembly only a day after confirming it would participate in the talks.

When the adviser was asked if the government had any plans to initiate peace talks with Delhi, he said Pakistan had “no such plans at the moment,” indicating a further stall in relations between the two countries.