New Delhi: In yet another diplomatic development to strengthen the peace overtures between New Delhi and Islamabad, Pakistan’s Economic Coordination Council on Wednesday allowed the import of cotton and yarn from India, news agency Reuters reported.


The step is also seen as a breakthrough in reviving the suspended trade between India and Pakistan.


The decision by Pakistan's top decision making body came soon after a meeting chaired by country's Commerce Ministry earlier in the day.


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The development comes a day after Pakistan Prime Minister Imran Khan wrote to Narendra Modi saying creation of an "enabling environment" is imperative for a constructive and result-oriented dialogue to resolve all outstanding issues between Pakistan and India, in particular the Jammu and Kashmir issue.


Khan's letter was in reply to PM Modi's letter to him last week extending greeting to Pakistan PM on the occasion of country's National Day. In his letter, Modi had said that India desires cordial relations with Pakistan but an atmosphere of trust, devoid of terror and hostility, is "imperative" for it.


Khan thanked him and said the people of Pakistan also desire peaceful cooperative relations with all neighbours, including India. "I thank you for your letter conveying greetings on Pakistan Day," he said.


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In February this year, the militaries of both the nuclear-armed nations announced that they have agreed to strictly observe all agreements on ceasefire along the Line of Control (LoC) in Jammu and Kashmir and other sectors.


Weeks later, both Pakistan's PM and powerful Army chief Gen Qamar Javed Bajwa made peace overtures towards New Delhi saying it was time for the two neighbours to "bury the past and move forward".


Ties between India and Pakistan went for a nosedive post the deadly terror attack on the Pathankot Air Force base in 2016 by Pakistan-based militant groups which was followed by few more attacks, including one on an Indian Army camp in Uri.