India Inc may soon get to invest in Pakistan

BORDER BIZ New Delhi: India is set to allow companies to invest in Pakistan and push for a dialogue for better air connectivity as part of a fresh set of measures to boost economic relations between the neighbours.      While the finance ministry will issue a clarification saying that Indian companies are permitted to invest across the border, the proposals would be vetted by a screening committee in the Reserve Bank of India, commerce secretary S R Rao said on Wednesday. The government recently lifted a ban on investment from Pakistan, opening another route for better ties.      In addition, over the next few days, the finance ministry will notify a 30% reduction in the sensitive list, which will set in motion the process of reduction of peak customs duty on 264 items to 5% over the next three years, including 155 agricultural products, 106 textiles goods and three petroleum products.      Rao, who is expected to meet his Pakistani counterpart around the middle of next month, will broach the issue of connecting the two capitals in view of the increased interest in trade and investment from both sides. "We will try it to the next level," he told reporters.      The government said there was also progress on energy trade — electricity and oil & gas — two items that are on the agenda finalized in May.