India to allow investment from regional rival Pakistan

India has decided to allow foreign direct investment from Pakistan, in the latest move towards opening trade ties for improving relations, dpa quoted news reports as saying on Saturday. "India has taken an in-principle decision to allow Pakistani FDI in India to deepen our economic engagement," Trade Minister Anand Sharma was quoted as saying by the Economic Times daily. Sharma had met his Pakistani counterpart Makhdoom Amin Fahim on Friday and the two nations opened a new trading post at the western Wagah border. Pakistan is the only country prohibited from investing in India. Islamabad agreed in November to grant India most-favoured nation status, which removes artificial trade barriers to allow easy export of Indian goods to Pakistan. The two also agreed to allow year-long, multiple-entry visas for business visitors.