Islamabad: Pakistan has decided in principle to grant the Most Favoured Nation (MFN) status to India, Foreign Minister Hina Rabbani Khar has said, citing a number of achievements in bilateral ties.

Khar made the remarks while speaking during question hour in the National Assembly or lower house of the Parliament on Wednesday. She did not provide details as to when the matter would be finalised.

India bestowed MFN status on Pakistan in 1996.

Pakistani Commerce Minister Makhdoom Amin Fahim, who led a high-level business delegation to India last month, had said in Mumbai that there was a strong opinion in his country that India should be given the Most Favoured Nation status.

Khar said the India-Pakistan dialogue process had been resumed after a gap of two years.

"We want progress on not just one but a number of issues with India on permanent basis besides normalization of overall bilateral relations," she added.

"The top most priority of the country is to ensure uninterrupted dialogue with India so that the resolution of (the) core (issue of) Kashmir could be ensured," she said.

"There are a number of achievements regarding relations with India. We have achieved ground on trade with India. For the first time in history, the Indian foreign minister attended the reception of the Pakistan Foreign Minister in New York," she said.

Responding to a question, she said Pakistan wants good relations with India while sticking to its principled stance on the Kashmir issue in accordance with the will of the Kashmiri people.