The Hindu Business Line : Indian banks to open branches in Pak soon

The Pakistan Prime Minister, Mr Shaukat Aziz, with his Indian counterpart, Dr Manmohan Singh, ahead of a meeting at the Hyderabad House in the Capital on Wednesday. — Kamal Narang

New Delhi , Nov. 24

INDIA and Pakistan have decided to establish banking relations.

The two sides have decided to set up banks in each other's country on a reciprocal basis.

Disclosing this, the Foreign Secretary, Mr Shyam Saran, told reporters that the central bank of the two countries would take the follow-up action to give concrete shape to the decision.

The decision has come during a meeting of the Prime Minister, Dr Manmohan Singh, with his visiting Pakistan counterpart, Mr Shaukat Aziz, here.

Meanwhile, giving a new twist to India's demand for granting Most Favoured Nation (MFN) status to enable it to move ahead with the Iran-India gas pipeline, Mr Aziz said that this would be linked to finding a solution to the Kashmir issue.

The project would mean an annual transit fee of around $600-$800 million for Pakistan.

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