ISLAMABAD, Oct 12: Pakistan has decided in principle to grant India the most favoured nation (MFN) status and continue dialogue with the neighbouring country on a wide range of issues, including Jammu and Kashmir, Foreign Minister Hina Rabbani Khar told the National Assembly on Wednesday.

Responding to a question during the ‘question hour’, she said both countries had covered new grounds in bilateral trade. She said she was confident the dialogue, resumed after a gap of two years, would continue.

“The top priority of the country is to ensure uninterrupted dialogue with India so that the resolution of the core issue of Kashmir can be ensured.

“There are a number of achievements regarding relations with India. We have achieved grounds on trade with India and for the first time in history the Indian foreign minister attended a reception given by the Pakistani foreign minister in New York,” she said.

She said increasing trade and progress in bilateral relations would not sideline Pakistan’s principled stance on the Kashmir issue.

She said the Jammu and Kashmir dispute had been discussed during all interactions between the leaders of the two countries over the past three years.

“I raised the Jammu and Kashmir issue with my Indian counterpart at the ministerial meeting in New Delhi in July,” she said, adding that the joint statement issued after the meeting had underscored the need for continued discussion on Jammu and Kashmir in a purposeful and forward-looking manner to find a peaceful solution by narrowing divergences and building convergences.

“Pakistan wants good relations with India while sticking to its principled stance on Jammu and Kashmir regarding the will of the Kashmiri people to be determined through a free and fair plebiscite under UN auspices.”

Ms Khar said the foreign secretaries of the two countries had agreed in February to convene secretaries level meetings on counter-terrorism, humanitarian issues, peace and security, confidence-building measures, Jammu and Kashmir, promotion of friendly exchanges, Siachen, economic issues, Wullar barrage and Sir Creek.

“The view is to resolve all outstanding issues peacefully, through constructive and result-oriented engagement and to establish friendly cooperative and good neighbourly relations between Pakistan and India.”