Achi news desk-
A study conducted by an international financial institution showed that the true trade potential between Pakistan and India could be over $25 billion. (Image for representation: News18)
Trade relations between India and Pakistan have remained suspended since August 2019. Signaling a possible change in diplomatic stance, Pakistan said it would “seriously” consider resuming trade activities
Pakistan wants to restore trade relations with India as it is an important neighbour, said the country’s foreign minister, Muhammad Ishaq Dar. In their last budget, he said, all business stakeholders wanted trade to resume between the two countries. “Neighbors cannot be changed and India is an important strategic partner,” he added.
Dar further said that all stakeholders would be consulted and a decision would be made after reviewing the proposals. India, meanwhile, said it would take this positive step only when Pakistan stops talking about Kashmir, sources said CNN-News18.
Trade relations between India and Pakistan have remained suspended since August 2019. Signaling a possible change in diplomatic stance, Dar said Pakistan would “seriously” consider restoring these relations. He was speaking at a press conference in London after taking part in the Nuclear Energy Summit in Brussels.
Highlighting the desire of Pakistan’s cash-strapped business community to resume trade with India, he said during his last budget, everyone in business wanted this to happen but they were paying unnecessary logistics and freight costs for imports from India.
Dar further said earlier that both the countries use the India-Pakistan direct trade route, which now has to come through Dubai. In a closed door meeting, he said that although he felt bad about the repeal of Article 370 in 2019, both countries had to move on.
“We welcome this statement and India will take any positive steps if they stop terrorism and stop talking about Kashmir. Abolition is an internal Indian matter and Kashmir is an integral part of India,” top Indian government sources said.
Pakistan had downgraded its diplomatic relations with India after the central government abrogated Article 370 of the Constitution, revoking the special status of Jammu and Kashmir and dividing the state into two union territories.
Will Pakistan take a page out of China’s playbook?
The chances of trade with India remain unclear due to the lack of consensus among the stakeholders regarding the restoration of trade relations between the two neighbours, The Express Tribune newspaper report, citing sources familiar with the development.
Sources told the paper that there was currently no concrete proposal on the table regarding the resumption of trade relations between Pakistan and India. It is believed that there is a difference of opinion among the stakeholders regarding the move. Even within the foreign office, there are divided opinions, which sources said was not unusual.
Some are in favor of sticking to Pakistan’s stance, without any major concessions from India, that there should be no normalisation. However, others take a more pragmatic and realistic view. They believe Pakistan can take a page out of China’s playbook. China has uneasy relations and border disputes with India, but this has not stopped the two rivals from trade ties.
A study conducted by an international financial institution mentioned the great trade potential between Pakistan and India. It shows that the true trade potential between Pakistan and India could be over $25 billion.
Despite the frosty relations, the two countries agreed to renew the 2003 ceasefire agreement along the Line of Control (LoC) in February 2021. Also recently, Prime Minister Narendra Modi in a post congratulated X Shehbaz Sharif on becoming the head of government Pakistan. , prompting hopes of a diplomatic thaw.
Sharif responded days later with an equally curmudgeonly post, thanking Modi for his “mood”. The Sharif-led coalition government came to power after February 8 elections but began its tenure with a dwindling economy that needs immediate improvement.
(With PTI inputs)
