There are many dimensions of trade, related with distance, demography, financial integration and most importantly the political ties. The economic ties between Pakistan and India are very volatile and there is a severe lack of trust. Unless this problem is not solved, even if India is being granted MFN as splurgenx calls for, the trade wont grow, many people on the both sides of the boarder dont even know what is the theory behind MFN status awarded to another country (It serves as the floor tarrif rate under WTO, below which tarrif examption can not be awarded to anyone if a country deems to errect trade barriers. If India has allowed Pakistan MFN, it doesn't mean India has allowed it for the love of Pakistan, but rather benchmark the tarrif rates applied to Pakistan as the minimum to be charged to anyone else, in case India decides it). The current trade pattern between Pakistan and India is also contingent, which testifies the lack of strategic fit between the India and Pakistan. Lastly, Chinese financial sector has started to intergrate in Pakistan (ICBC currently operates in Pakistan) but none of the Indian bank is present in our country.