JI | India-Pakistan trade relations: Current and Potential
published in Dawn regarding bilateral trade ties between India and Pakistan over the avenues of economic relation; though the scope of this bilateral tie was. Relations between India and Pakistan have been complex and largely hostile due to a number There have been numerous attempts to improve the relationship—notably, the Shimla summit, the Agra summit and the Lahore summit. has resulted in the collapse of bilateral relations, with little expectation they will recover. Key Points. Bilateral trade between India and Pakistan is influenced by political trends. Those ties, nevertheless, show an upwards momentum.
Other territorial claims You can help by adding to it. March The relations are locked in other territorial claims such as the Siachen Glacier and Kori Creek. Water is cited as one possible cause for a conflict between the two nations, but to date issues such as the Nimoo Bazgo Project have been resolved through diplomacy. East Bengali refugees InIndia recorded close to 1 million Hindu refugees, who flooded into West Bengal and other states from East Pakistan now Bangladeshowing to communal violence, intimidation and repression from authorities.
The plight of the refugees outraged Hindus and Indian nationalists, and the refugee population drained the resources of Indian states, which were unable to absorb them.
India, Pakistan can take two-way trade to $30 billion, says Indian envoy
Although many Indians termed this appeasement, Nehru signed a pact with Liaquat Ali Khan that pledged both nations to the protection of minorities and creation of minority commissions. Khan and Nehru also signed a trade agreement, and committed to resolving bilateral conflicts through peaceful means.
Steadily, hundreds of thousands of Hindus returned to East Pakistan, but the thaw in relations did not last long, primarily owing to the Kashmir conflict. Afghanistan—India relations and Afghanistan—Pakistan relations Afghanistan and Pakistan have had their own historic rivalry over their border, the Durand Linewhich numerous Afghan governments have refused to recognize as the border.
This has led to strong tensions between the two countries and even military confrontationsresulting in Pakistan as victorious. Pakistan has long accused Afghanistan of harboring Baloch separatist rebels and attempting to sponsor separatist tendencies amongst its Pashtun and Baloch populations, going as far back as the s.
It has been believed that Pakistan during the s, then under Zulfikar Ali Bhuttoin retaliation began supporting Islamist factions in Afghanistan.
The later Soviet intervention in Afghanistan to prevent further escalation and eventual Islamist takeover of the country proved disastrous afterwards. The United States and its allies feared direct Soviet involvement in Afghanistan and began aiding Pakistan's support for the Afghan Mujaheddin, in hopes of crippling the Soviet Union.
The Soviet-Afghan war turned out to be a stalemate with heavy casualties on all sides and costly for the Soviets. Under international agreement, the Soviets withdrew. But various Afghan factions fought one another and their external supporters, including the Soviet Union, Iran, Pakistan and others disagreed on which should be in power. Continued rival proxy support led to the civil warin which Pakistan supported in the Talibanseeking to secure its interests in Afghanistan and providing strategic support, while India and Afghanistan's other neighbors backed the Northern Alliance.
After the Taliban defeated the Northern Alliance in much of Afghanistan in the Afghan Civil Warthe Taliban regime continued to be supported by Pakistan — one of the three countries to do so — before the 11 September attacks. India firmly opposed the Taliban and criticized Pakistan for supporting it. India established its links with the Northern Alliance as India officially recognized their government, with the United Nations.
India's relations with AfghanistanPakistan's neighbor, and its increasing presence there has irked Pakistan. The Indian embassy bombing in Kabul was a suicide bomb terror attack on the Indian embassy in KabulAfghanistan on 7 July at 8: Bush confronted Pakistani Prime Minister Yousuf Raza Gilani with evidence and warned him that in the case of another such attack he would have to take "serious action".
EXPLAINED: India and Pakistan's bilateral trade relations
Insurgency in Jammu and Kashmir According to some reports published by the Council of Foreign Relationsthe Pakistan military and the ISI have provided covert support to terrorist groups active in Kashmirincluding the al-Qaeda affiliate Jaish-e-Mohammed. Many Kashmiri militant groups also maintain their headquarters in Pakistan-administered Kashmirwhich is cited as further proof by the Indian government. Author Gordon Thomas stated that Pakistan "still sponsored terrorist groups in the state of Kashmir, funding, training and arming them in their war on attrition against India.
A car bomb exploded near the Jammu and Kashmir State Assembly on 1 Octoberkilling 27 people on an attack that was blamed on Kashmiri separatists. It was one of the most prominent attacks against India apart from on the Indian Parliament in December The dead bodies of the terrorists and the data recovered from them revealed that Pakistan was solely responsible for the activity.
On 13 Julyarmed men believed to be a part of the Lashkar-e-Toiba threw hand grenades at the Qasim Nagar market in Srinagar and then fired on civilians standing nearby killing twenty-seven and injuring many more.
Abdul Ghani Lone, a prominent All Party Hurriyat Conference leader, was assassinated by an unidentified gunmen during a memorial rally in Srinagar. The assassination resulted in wide-scale demonstrations against the Indian occupied-forces for failing to provide enough security cover for Mr. A car bomb exploded near an armoured Indian Army vehicle in the famous Church Lane area in Srinagar killing four Indian Army personnel, one civilian and the suicide bomber.
Terrorist group Hizbul Mujahideenclaimed responsibility for the attack. A terrorist attack on 29 July at Srinigar 's city centre, Budshah Chowk, killed two and left more than 17 people injured. Most of those injured were media journalists. No Terrorist group claimed responsibility for the attack.
A terrorist attack by four heavily armed terrorists on 18 Septembernear the town of Uri in the Indian state of Jammu and Kashmir, killed 18 and left more than 20 people injured.
It was reported as "the deadliest attack on security forces in Kashmir in two decades". India blamed Pakistan for carrying out the attacks, an allegation which Pakistan strongly denied and one that brought both nations to the brink of a nuclear confrontation in — However, international peace efforts ensured the cooling of tensions between the two nuclear-capable nations. The plane was hijacked on 24 December approximately one hour after take off and was taken to Amritsar airport and then to Lahore in Pakistan.
After refueling the plane took off for Dubai and then finally landed in KandaharAfghanistan. Under intense media pressure, New Delhi complied with the hijackers' demand and freed Maulana Masood Azhar from its captivity in return for the freedom of the Indian passengers on the flight. The decision, however, cost New Delhi dearly.
Maulana, who is believed to be hiding in Karachilater became the leader of Jaish-e-Mohammedan organisation which has carried out several terrorist acts against Indian security forces in Kashmir. The Fort houses an Indian military unit and a high-security interrogation cell used both by the Central Bureau of Investigation and the Indian Army. The terrorists successfully breached the security cover around the Red Fort and opened fire at the Indian military personnel on duty killing two of them on spot.
The attack was significant because it was carried out just two days after the declaration of the cease-fire between India and Pakistan.
The attack was carried out on 25 Septemberjust few days after state elections were held in Jammu and Kashmir. Two identical letters found on both the terrorists claimed that the attack was done in retaliation for the deaths of thousands of Muslims during the Gujarat riots. Though no terrorist group claimed responsibility for the attacks, Mumbai Police and RAW suspected Lashkar-e-Toiba 's hand in the twin blasts. Before the terrorists could reach the main disputed sitethey were shot down by Indian security forces.
One Hindu worshipper and two policemen were injured during the incident. This was the first major military standoff between India and Pakistan since the Kargil War in The military buildup was initiated by India responding to a Indian Parliament attack and the Jammu and Kashmir legislative assembly attack. At least 68 people were killed, mostly Pakistani civilians but also some Indian security personnel and civilians.
The sole surviving gunman Ajmal Kasab who was arrested during the attacks was found to be a Pakistani national. Currently, any altercation between the two countries inevitably leads to the cessation of some, if not all, trade activity. If healthy trade relations are built up between India and Pakistan — and the potential is immense —it can integrate the lives of millions of people in both countries. With livelihoods at stake, both India and Pakistan will be forced to stay engaged and find alternate means of dispute resolution.
Over a period of time, this has the potential to significantly shift the paradigm of cross-border relations in South Asia. Context Though trade between the two countries has increased in the last couple of years, it is still far from reaching its potential, and remains extremely vulnerable to political fluctuations. In more recent history, India stopped trade via land and air routes following the attack on Indian Parliament in Barriers to trade and consequences The real breakthrough in Indo-Pak trade came in — 58 years after partition — when a land route was opened at Attari for a limited number of commodities.
This has brought about a marked change in support to traders on both sides and facilitated faster movement of goods. These changes led to a decrease in freight rates. However, despite these positive changes, several barriers to trade continue to exist. Infrastructure constraints Even though infrastructure was improved through the ICP on the Indian side, similar facilities are yet to be created on the Pakistani side. Also, this quality of infrastructure does not extend to the rail cargo system even on the Indian side.
Transit rights India has not allowed Pakistan to access Nepal, Bangladesh and Bhutan via its territory and Pakistan has not given transit rights to India to access Afghanistan. This significantly affects trade potential, even with other neighbours.
Financing and banking facilities for traders Guaranteed payments are essential for building reliable business partnerships and for this banking channels need to be improved.
This agreement has not yet been implemented. Limitations on goods that can be traded Pakistan switched from the positive trading regime which listed products that are permissible for trade between the two countries to a negative list regime that only bans a few items from trade, but permits the rest in Under this, only the import of 1, Indian products is barred.