Economic cooperation can help bridge Indo-Pak trust deficit: SM Krishna

India believes enhanced economic cooperation with Pakistan through an MFN status will be a "win-win" proposition and will help bridge the "trust deficit" in bilateral ties, External Affairs Minister SM Krishna has said.

He said while India wants to "fully normalise" Indo-Pak ties, Pakistan must also fulfil its stated commitments on India's "terrorism-related concerns".

Krishna was quoted as saying by Singapore's Institute of South Asian Studies (ISAS) in a report that Pakistan cabinet's decision to approve the phasing out of the 'Negative list' of items for trade with India by December 2012 means the process of trade normalisation between the two countries will be completed soon.

"We have consistently maintained that enhanced economic and commercial cooperation between India and Pakistan is a win-win proposition for both countries and would help us in addressing our common developmental challenges.

"It would also contribute towards bridging the trust deficit," he said.

Krishna added that India has consistently conveyed to Pakistan that it desires a "friendly and cooperative" relationship in an atmosphere "free from terror and violence".

"We believe that for our relations to be fully normalised, Pakistan must fulfil its stated commitments on our terrorism-related concerns," he added.

He also termed China as a "priority" in India's foreign policy as the two countries share a strategic and cooperative partnership, notwithstanding the "fields of divergence", that are not unnatural in relations amongst major powers.