Khar told mediapersons in Lahore Saturday that MFN status to India had been granted with the approval of the federal cabinet with the assurance that India would waive non-tarrif barriers as part of the dialogue process.
On confidence building measures with India, she said that New Delhi had assured Islamabad that it would not block Pakistan's way in Preferential Market Access by the European Union unlike it had done in the past, reported Associated Press of Pakistan.
She said the army was a stakeholder in the dialogue process with India.
All institutions are supportive of the idea of improving relations with India, she added.
With reference to Kashmir, the foreign minister said that Pakistan desired result-oriented dialogue with India. The country had achieved much more than expected during the dialogue process.
She said that stability in the region was of primary importance to Pakistan as its role was proactive in building relations with neighboring countries.
Khar said: "Promoting relations and enhancing economic as well as political ties with countries like Turkey, Afghanistan and India are the corner-stone of country's foreign policy."
Calling the country's membership of the UN Security Council (UNSC) an achievement, she said it had dispelled the impression that Pakistan was isolated among the comity of nations.
The victory in the Security Council election by three-fourth majority was a tangible proof that Pakistan was a matured and responsible state in the world.
Pakistan's proactive role in the sixth summit dialogue in Turkey as well as the trilateral dialogue in Afghanistan was another proof of Pakistan's desire to promote regional peace, said Khar.
She said that Pakistan sought good neighbourly relations with all the countries in the region and would also reach out to other countries to promote peace and harmony in South Asia.