New Delhi/Islamabad, Nov 5
Officials in both capitals today scrambled to undo the confusion caused by the Pakistani Prime Minister Yusuf Raza Gilani’s statement in Lahore that Pakistan had not really granted the ‘Most Favoured Nation’ status to India. The Pakistani cabinet, said Gilani, had merely given the ‘go-ahead’ to the Commerce Ministry to take the negotiations with India forward.

The statement caused a flutter and Pakistan appeared to be backtracking from what had appeared as a path-breaking move to end discriminatory tariffs, non-tariff barriers and better trading relations between the two countries.

Indian Foreign Ministry sources claimed that the Indian High Commissioner in Islamabad, Sharad Sabharwal, was conveyed the Pakistan cabinet’s decision the same evening. Union Commerce and Industry Minister Anand Sharma had also spoken to his Pakistani counterpart, who too had confirmed the decision taken by the Pakistani cabinet. Foreign Secretary Ranjan Mathai also downplayed the confusion and read out the statement issued by the Pakistan Commerce Ministry after the cabinet meeting.

Prime Minister Manmohan Singh, who had welcomed Pakistani cabinet decision by saying ‘der aaye, durust aaye’ ( better late than never), is due to meet Gilani next week in Maldives during the SAARC summit. The Commerce Secretary level talks are also expected to be held in New Delhi later this month. The two meetings are expected to clear the air. Right-wing elements, hardliners and sections of the Pakistan Army are believed to have opposed normalisation of trade between the two countries. Although the Pakistani Prime Minister has been painstakingly pointing out that even China had normal trade relations with India, he is still finding it difficult to sell the idea in the country.

In Lahore on Saturday, Gilani asserted that the Army had no say in normalising trade with India. But judging by the frantic rounds of discussion at both the foreign and the commerce ministries in Islamabad, there are misgivings that interests of Pakistani business and industry would suffer.