ISLAMABAD, Dec 17: Pakistan said on Tuesday it could not initiate dialogue on free trade agreement (FTA) or most favoured nations (MFN) status unless India made tangible progress on political issues particularly the Kashmir dispute.

Commerce Minister Humayun Akhtar Khan told a group of journalists here on Tuesday that any proposal of Free Trade Agreement (FTA), the Most Favoured Nation status or any other step to promote trade with India was impossible in the present circumstances.

He was asked to comment on the Indian prime minister’s statement that Pakistan was dragging its feet on the most favoured nation’s status to India.

“We cannot initiate dialogue with India on trade or grant (it) the MFN status until it starts negotiations on political issues, particularly Kashmir, which is the core dispute between the two countries,” he said.

India wanted the MFN status before talks on political issues, but Pakistan believed political issues, including Kashmir, should be tackled in the first place to have durable trade relations with India, he said.

Asked to comment over the paradox that Pakistan was opposed to trade negotiations till the resolution of political issues but providing guarantees of security for Iran to India gas pipeline, the minister said that Pakistan had agreed in principle in the past to the pipeline but that assurance was to Iran and not to India.

To a question, the minister said an official trade delegation would start negotiations with the United States on Dec 27 and then there would be a follow-up delegation from the private sector.

He said the FTA with the United States would be part of negotiations but it was at a preliminary stage and progress was expected during his visit to Washington from Dec 27. “We will seek expansion in trade and enhancement of textile quota, besides talks on the post-2005 scenario when quotas would be removed,” he said.