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Home » Building Economic Diplomacy: Exploring Pakistan-India Trade Prospects
Pakistan

Building Economic Diplomacy: Exploring Pakistan-India Trade Prospects

i2wtcBy i2wtcMay 1, 2024No Comments5 Mins Read
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Since 2019, diplomatic relations between Pakistan and India have been fraught with complexities and tense confrontations. August 5thth In 2019, the Indian government abrogated Articles 370 and 35-A of the Indian Constitution, stripped Kashmir of its special status, exacerbated tensions by planning demographic changes, and forced Pakistan to engage in diplomatic negotiations with India. It downgraded relations and halted trade between the two countries. Currently, both countries have vacant high commissioner positions, with only deputy high commissioners and chargé d’affaires representing each other.

tense diplomatic relations

The official stance of both sides remains firm, and both sides are setting the terms for future peace talks and bilateral talks. New Delhi has asked Pakistan to end cross-border terrorism before talks begin, while Islamabad has asked India to withdraw its Article 370 decision as a precondition for talks. Such stereotypes not only hinder efforts to develop a viable discourse, but also slow progress toward reconciliation.

Pulwama episode and Balakot strike

The February 2019 Pulwama incident stands out as a watershed in India-Pakistan relations. Following the Pulwama suicide bombing, India accused Pakistan of complicity and revoked its Most Favored Nation (MFN) status. India imposed a whopping 200 percent import tax on all Pakistani exports, effectively cutting off bilateral trade. Additionally, India has accused Pakistan of smuggling drugs, arms and counterfeit cash, in addition to allegations of terrorist financing and money laundering, and has blocked trade across the Line of Control (LoC) in Jammu and Kashmir. It stopped.

Pakistan categorically denies any participation in the Pulwama attack and rejects India’s accusations as an attempt to divert attention from India’s failures. Islamabad has accused India of providing little verifiable evidence to support its claims. Rather, Pakistan has accused the Bharatiya Janata Party-led government of exploiting anti-Pakistan and anti-Muslim sentiment for political gain, especially during election campaigns.

India was not satisfied with Pakistan’s response and chose to launch airstrikes on Pakistan. India said it attacked a terrorist training camp in Balakot, a territory on mainland Pakistan. However, New Delhi failed to provide any evidence of terrorist training camps and only violated Pakistan’s territorial sovereignty. Pakistan responded to these operations by conducting airstrikes on Indian Illegally Occupied Jammu and Kashmir (IIOJ&K) using BVR (beyond visual range) weapons. The exchange escalated into an air battle, during which Pakistan shot down two Indian military planes and captured an Indian pilot. The pilot was released after a two-day delay following Pakistan’s goodwill bid to de-escalate tensions.

Pakistan’s peace efforts

Despite the challenges, Pakistan has continually strived to reduce tensions and support peace in the region. During the military clashes between China and India in 2020, Pakistan avoided escalating tensions along its eastern border and reaffirmed its commitment to regional stability. Pakistan and India reactivated the 2003 LoC ceasefire agreement in February 2021. It is an important gesture that welcomes development and fosters trust.

Furthermore, Pakistan’s decision to allow India to supply wheat and critical medicines to Afghanistan on humanitarian grounds in November 2021 demonstrated its readiness to engage in constructive dialogue and positive cooperation. Despite provocations such as India’s BrahMos missile launch on mainland Pakistan in March 2022, Islamabad chose to err on the side of caution, avoiding escalation and pursuing diplomatic solutions ahead of military conflict. .

In 2023, despite the severance of diplomatic relations, Pakistan issued thousands of visas to Sikh and Hindu pilgrims from India, allowing them to attend religious festivals and events in Pakistan. The release of Indian fishermen and civilians also reaffirmed Pakistan’s commitment to humanitarian action and confidence-building efforts.

Importance of Kashmir issue for Pakistan

The longstanding Kashmir issue remains a major obstacle to any significant improvement in India-Pakistan relations. The Kashmir issue, which dates back to 1947, continues to exacerbate tensions and hinder efforts to achieve peace. Pakistan emphasizes the humanitarian aspects of the situation and asserts the Kashmiri people’s right to self-determination, which is established in UN resolutions and international declarations. Islamabad seeks serious discussions and invites India to match Pakistan’s flexibility and willingness to engage in constructive negotiations.

build new bonds

Recent statements by Pakistan’s former finance minister and current foreign minister Ishaq Dar have reignited concerns about potential trade with India. Dhar acknowledges the problems created by the strained relationship, but emphasizes the business community’s attraction and need for trade with India. He highlighted the inefficiencies and additional costs resulting from indirect trade channels and stressed the importance of thoroughly analyzing the trade situation. Mr. Dar’s words highlight the resolve of the business community to resume direct trade ties between Pakistan and India, despite opponents and detractors.

conclusion

Although India-Pakistan relations continue to face tough challenges, there are some optimistic prospects for development and resolution. Pakistan’s attempts to reduce tensions and promote peace, coupled with the business community’s push for trade normalization, presents an opportunity for constructive participation. As the two countries negotiate complex geopolitical forces, economic diplomacy and communication remain critical to achieving long-term peace and stability in the region.



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