“This was a decision taken in the national interest and all stakeholders, including our military and defence institutions, were on board,” Information Minister Firdos Ashiq Awan told reporters.

Pakistan’s military, which has ruled Pakistan for more than half of its history, sets security and foreign policy.

Critics say Pakistan’s generals have been so obsessed with a perceived security threat from India for decades that their judgment on vital issues such as the economy has become clouded.

“It’s a very powerful step, and a welcome step in the right direction,” Indian Trade Secretary Rahul Khullar told Reuters in New Delhi.

“It’s good for business. It’s good for commerce, and most importantly it increases confidence on the economic front that both Pakistan and India are committed to moving the social and trade agenda forward.”