Demand for better relations with India has also started rising in the markets of Pakistan. Recently, the new government of Pakistan has indicated that trade with India can be restarted.
However, the situation is not clear regarding when relations will be normal or when trade routes will reopen. Pakistan had ended bilateral relations with India in the year 2019.
Pakistan Foreign Minister Ishaq Dar has indicated that trade with India can be resumed. According to media reports, on Saturday he said, ‘Pakistani businessmen want to do business with India… The government will explore possibilities of this by talking to all stakeholders.’
The special thing is that the discussion of resuming trade with India in Pakistan has started at a time when the neighbor is facing economic crisis.
Dar has hinted at trying to improve the economy before normalizing relations with India.
Why did business stop?
In August 2019, the Government of India abolished Article 370. Since then, Pakistan had ended bilateral relations with India.
However, it is said that the 200 percent tariff imposed by India on Pakistani imports was a reason. Earlier, India had canceled the Most Favored Nation or MFN status of Pakistan.
India took this step after the Pulwama terrorist attack on 14 February 2019. In that terrorist incident, terrorists of Pakistani group Jaish-e-Mohammed had targeted the CRPF convoy using a vehicle laden with explosives.
Then 40 soldiers were martyred. Only 24 hours after the incident, India had withdrawn the MFN status of Pakistan.
What could be the reasons?
Nothing has been said clearly from DAR regarding resumption of business. However, there are many reasons for Pakistan’s changing stance.
Among these, the new government of Pakistan is indicating the possibilities of a new policy. Another reason could also be the economic condition of Pakistan.
Due to stoppage of trade with India, Pakistan has to import goods from distant countries, due to which the already low foreign exchange reserve is further decreasing.