Pakistan says it has decided to normalize trade relations with its giant rival and neighbor India.
Information Minister Firdous Ashiq Awan says the Cabinet on Wednesday approved a decision to give India the status of the "Most Favored Nation."
The move is hailed as a positive first step in normalizing diplomatic and other links with India.
The two nuclear-armed countries have fought three wars since they were created in 1947.
Granting the most-favored status means the two countries can now trade on equal terms, typically giving each other low tariffs and high import quotas.