Speaking to the Toronto Star by telephone from Islamabad, Peter MacKay said part of the reason for the potential resumption in arms sales was Pakistan's resolve to crackdown on the Taliban in its border region with Afghanistan.
"They are certainly a government that's taking control of this situation," MacKay told the Star.
However, MacKay said "We're not there yet."
Among the things Pakistan would reportedly be interested in from Canada are flight simulators, night-vision goggles and unmanned drones, the newspaper said.
Earlier this week, MacKay called Pakistan the "most dangerous country in the world" because of its nuclear capabilities and the ongoing conflicts with India and in Afghanistan, the Star said.
Canada instated the Pakistani arms embargo in 1998 in response to a nuclear test the country conducted soon after India carried out a test atomic explosion.