The federal cabinet on Wednesday approved a proposal granting India the status of "most favoured nation" in a bid to boost trade between Pakistan and India.

"The cabinet has unanimously approved India as the most-favoured nation," Information Minister Firdous Ashiq Awan told a news conference in Islamabad.

"This will bring economic benefits to us and this decision has been taken in the national interest," Awan added, conceding that some cabinet ministers had initially voiced objections to the proposal from the commerce ministry.

Pakistan has already bestowed the designation on more than 100 countries, including China.

"The Prime Minister Syed Yusuf Raza Gilani reviewed all the objections and took the cabinet into confidence that it will not hurt our national security, and then they unanimously approved this summary sent by the ministry of commerce," Awan said.

When Commerce Minister Amin Fahim visited India in September, both sides agreed to more than double trade within three years to $6 billion, set up a second trade border post and facilitate business visas for their citizens.