The Pakistan its government has decided to grant India the most favoured nation (MFN) status. The decision was taken on Wednesday by the Pakistani cabinet under prime minister Syed Yusaf Raza Gillani. It is expected to raise legal trade between the two neighbours manifold. India gave the same status to Pakistan as far back as 1996, which allowed that country access to all Indian goods save 850 items. But so far Pakistan has permitted import of just 852 items from India. Islamabad’s decision has deep economic implications for the both countries, their businesses and consumers. First, the informal trade, smuggling and third-country exports via Dubai, Nepal and Mauritius (trade in the last is estimated at $3.5 billion) may come to a close. Second, direct merchandise trade is expected to double to $6 billion in three years, as projected in a joint communiqu? of Indian and Pakistani commerce ministers last month.The Confederation of Indian Industry (CII) said, "Roadblocks like stringent visa rules, non-tariff barriers, communication difficulties, and opening of more trade routes like Wagah need to be addressed."Cement companies are a bit cagey. Pakistani cement is already imported at zero duty through Wagah. That makes Pakistani cement cheaper 15 per cent cheaper than the Indian product. "If cement import is encouraged further, it will not be good for Indian cement companies whose margins are already impacted by high input costs. There is already an oversupply situation," said Vinod Juneja, managing director of the Binani group, quoted in a newspaper report.