ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 26th June. Click Here for more information.
Synopsis: The positive signs in the India-Pakistan relation are again turning negative. Pakistan recently took an u-turn after the announcement to open trade with India.
Background:
- Recently, Pakistan reversed a two-year-old decision to suspend all trades with India. Followingly, Pakistan allowed for the import of cotton and sugar from India.
- However, the decision to allow the import of cotton and sugar from India has been withdrawn within a fortnight.
- It has been stated that restoration of J&K’s special status will be the precondition for opening up trade with India.
Why Pakistan was ready to resume trade with India?
Because of the following reasons, the government of Pakistan was ready to resume trade with India,
- First, the economy of Pakistan is very weak, and it has been sustained by IMF loans.
- Second, the action by Financial Action Task Force over possible blacklisting on terror financing is affecting the ordinary citizens.
- Third, the Pandemic has also impacted the financial health of the country.
- Fourth, a steep fall in the cotton yield has kept the prices of the commodity high. This has caused a crisis in the country’s main manufacturing and export industry.
What is the way forward?
India needs the cooperation of Pakistan to maintain peace on the western front. Especially after the standoff with China at the LAC in eastern Ladakh.
To maintain friendly relation, India needs to be supportive of Pakistan by helping them to overcome the financial crisis by
- Lifting the 200 percent tariffs on Pakistani imports imposed after the Pulwama attack.
- Restoring the hugely popular cross-LoC trade and bus service. This will also help to strengthen the peace across the border.
Source: Indian Express
