The Pakistan government has called an inter-ministerial meeting in Islamabad on Monday to discuss the issue of granting most favoured nation status to India.

Officials from the ministries of defence, railways, sports, culture, interior, foreign office and commerce will attend the meeting, according to the daily Dawn.

'Resumption of air, train, bus services and sport ties between the two countries as well as proposals for further enhancement in these areas', will be discussed, it quoted the official as saying.

"The main task of the meeting will be to discuss pros and cons of possible extension of the MFN status to India and its likely implications on Pakistan's economy," he said.

The report followed assertions by Commerce Minister Humayun Akhtar two days ago that Pakistan was not for improvement of trade relations with India unless the proposed peace talks between the two countries made progress on critical issues like Kashmir.

Prime Minister Mir Zafarullah Khan Jamali had early this month announced that his government had cleared 78 items for tariff concessions to India under the South Asian Preferential Trading Arrangement as a confidence building measure.

Press Trust of India