The Background Paper MFN Status and Trade between Pakistan and India has been authored by Mr. Tasneem Noorani, Former Federal Secretary Commerce, Government of Pakistan, for the benefit of Pakistani Parliamentarians joining the Pakistan-India Parliamentarians Dialogue-III themed on Trade and Economic Relations between Pakistan and India and being facilitated by PILDAT. The paper, commissioned by PILDAT, explores different aspects of trade relationship between the two countries with specific context of the MFN status. The paper also looks at how SAFTA has influenced trade relations in the region and how better economic and trade relations between Pakistan and India will influence SAFTA. As an independent Pakistani think-tank, PILDAT believes that while diplomatic channels for Dialogue must continue, Parliamentarians from both countries should be facilitated on both sides for a greater interaction and developing a better understanding for resolving issues that should lead diplomatic initiatives. It is for this objective that PILDAT has been facilitating Parliamentarians Dialogues.