Pakistan under big pressure to resume trade dealings with India?
Pakistan's Foreign Minister, Ishaq Dar, hinted at considering trade with India, signaling a response to Pakistan's struggling economy. Trade between the two countries has been halted since 2019, primarily due to geopolitical tensions exacerbated by incidents like the Pulwama attack and India's revocation of Article 370
Follow"We will seriously consider trade with India," Pakistan Foreign Minister Ishaq Dar said during his visit to London. Dar's statement reflects a necessity driven by Pakistan's faltering economy, currently in dire straits. With its economy in intensive care, trade emerges as the sole remedy for Pakistan's financial woes, prompting the desire for trade relations with India.
Trade between India and Pakistan has remained suspended since 2019, coinciding with a period of strained bilateral relations, which are at their lowest point in the last five years. The cessation of trade can be attributed to various factors, including India's revocation of Article 370 from Jammu and Kashmir in August 2019.Â
Additionally, the Pulwama attack in February 2019, orchestrated by the Pakistan-based terrorist organization Jaish-e-Mohammed, prompted India to revoke Pakistan's 'Most Favoured Nation' (MFN) status and impose a 200 per cent tariff on Pakistani imports, leading to a sharp decline in trade relations.
Previously, trade between the two countries encompassed a range of commodities, including cotton, organic chemicals, plastics, dyeing extracts, nuclear reactors, and machinery. However, with the closure of trade channels, Pakistan's economy has suffered, exacerbating existing challenges such as inflation, political instability, and reliance on external financial aid.
While Pakistani authorities have not explicitly advocated for resuming trade with India, underlying factors suggest a keenness to do so. Pakistan's new government, led by Prime Minister Shahbaz Sharif, has introduced new policies, indicating a potential shift in approach.Â
Moreover, Pakistan's economic distress, exacerbated by factors such as natural disasters and dwindling foreign exchange reserves, underscores the urgency for trade with India. However, India maintains a steadfast stance, insisting on the cessation of terrorism before normalizing relations or engaging in dialogue with Pakistan.
