Pakistan has decided in principle to grant Most Favoured Nation (MFN) status to India, Foreign Minister Hina Rabbani Khar said today.
Khar made the remarks while speaking during question hour in the National Assembly or lower house of parliament this evening.
She did not provide details as to when the matter would be finalised. She said the India-Pakistan dialogue process had been resumed after a gap of two years.
"The top most priority of the country is to ensure uninterrupted dialogue with India so that the resolution of (the) core (issue of) Kashmir could be ensured," she said.
"There are a number of achievements regarding relations with India. We have achieved ground on trade with India.
For the first time in history, the Indian foreign minister attended the reception of the Pakistan Foreign Minister in New York," she said.
Responding to a question, she said Pakistan wants good relations with India while sticking to its principled stance on the Kashmir issue in accordance with the will of the Kashmiri people.
Pakistan wants the Kashmir issue to be determined through a "free and fair plebiscite under UN auspices", she added.
During the past three years, the Kashmir issue has been discussed during all bilateral interactions between the leadership of India and Pakistan, Khar said.
It has also been discussed by the Foreign Secretaries of the two sides, she added.
"I raised the Jammu and Kashmir issue with my Indian counterpart at the ministerial meeting in New Delhi in July 2011. The joint statement of the ministerial meeting underscored the need for continued discussion of Jammu and Kashmir in a purposeful and forward-looking manner with a view to finding a peaceful solution by narrowing divergences and building convergences," she said.