india and pakistan propose to expand economic linkages with each other despite problems persisting in their political relations. prime minister nawaz sharif told media persons, during prime minister vajpayee's february visit to lahore, that pakistan would hold consultations with India on the issue of granting Most Favoured Nation (MFN) status to India which indicates scope for restoration of bilateral trade ties. In tune with such positive signs it is observed that India-Pakistan bilateral trade has risen 14-fold over the past decade from Rs 47.15 crore in 1987-88 to Rs 463.92 crore in 1998-99. To that extent, bilateral trade ties are the only hope in normalising India-Pakistan relations.1 On April 10, 1999, the largest subcontinental neighbours signed a memorandum of understanding in New Delhi to set up the India-Pakistan Chamber of commerce.
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