Just in: Pakistan's Cabinet unanimously approves phasing out of negative list regime for trade with India by December.

The Pakistan Government's effort to normalise trade relations with India is being opposed by two ministries, including the key Textiles Ministry that wants trade liberalisation to be put off for five years.

The Commerce Ministry recently announced that it intends to switch over to a small negative list for trade with India by the end of February and to phase out this regime by the end of the year.

However, the Ministry of Industries and the Textiles Ministry, which have a crucial say in framing strategies to protect domestic manufacturers, have opposed the move.

The Ministry of Industries wants the negative list to be increased from 636 items to 1,297 items, while the more important Textiles Ministry says that there should be "no liberalisation for five years with India', the Dawn newspaper quoted its sources as saying.