Pakistan gives India the status of "Most Favoured Nation"

Islamabad: Pakistan says it has decided to normalise trade relations with its giant rival and neighbor India.

Information Minister Firdous Ashiq Awan says the Cabinet on Wednesday approved a decision to give India the status of the "Most Favoured Nation."

The move is hailed as a positive first step in normalising diplomatic and other links with India.

The two nuclear-armed countries have fought three wars since they were created in 1947.

Granting the most-favoured status means the two countries can now trade on equal terms, typically giving each other low tariffs and high import quotas.