India's Department of Industrial Policy for FDI from Pakistan; seeks changes in FEMA

New Delhi, Feb 16 (PTI) In a significant move aimed at improving bilateral economic ties with Pakistan, India's Industry Ministry has written to the country's finance ministry to permit foreign direct investments (FDI) from the neighbouring country. "The Department of Industrial Policy and Promotion (DIPP) has sent a proposal to Finance Ministry for changes in FEMA to allow FDI from Pakistan," a top official said. The government, the official added, could change the Foreign Exchange Management Act (FEMA) regulations to allow FDI from Pakistan by "simply issuing a notification." India has been taking steps to improve trade relations with Pakistan. Commerce and Industry Minister Anand Sharma is currently visiting Pakistan along with a big industry delegation. In order to address the security concerns over investments from Pakistan, the official said, the FDI proposals from the neighbouring country could be routed through the Foreign Investment Promotion Board (FIPB) which is headed by Economic Affairs Secretary in the Finance Ministry. As per India's present FDI policy, a non-resident entity, other than a citizen of Pakistan or an entity incorporated in there, can invest in India. The government had earlier allowed investments from Bangladesh under the FIPB route. PTI