The recent appointment of a trade officer in Pakistan’s high commission in New Delhi has once again sparked discussions about a possible resumption of trade across the Wagah border. While the official response, from the Ministry of Commerce, has been to say that trade ties between both countries remain frozen – since August 2019 – there is an opportunity for both countries to move beyond the past.
South Asia remains the least economically integrated region in the world, primarily because of the India-Pakistan relationship. Both countries suffer from similar challenges – poverty, climate change, – and their peoples would benefit by a closer commercial relationship. At a time when Pakistan’s economy is hurting, opening ties with India on the trade front would provide immediate relief to the economy.
As an editorial in Dawn noted, “many in government as well as the private sector have pointed out, the resumption of trade can be a possible pathway to better bilateral relations, and if done right, can contribute to mutual economic progress. Moreover, the army chief has also spoken positively about the need for trade with India, as have some of the country’s top business persons.”
The Editorial concludes, “some elements in the country will decry the idea of maintaining commercial ties with India and accuse the government of ‘selling out’ the Kashmir cause. Support for Kashmir is based on principles and should continue. If ties improve with India through trade, it may create more conducive conditions to resume bilateral dialogue, as well as negotiations, to peacefully and judiciously resolve the decades-old Kashmir dispute. Therefore, bold and innovative thinking is required of the government. Let it explore the prospects of resuming trade, especially if it works in favour of reviving the local economy. This can create the dual benefits of economic revitalisation and normalisation of ties with India — surely a better option than the distrust that dominates South Asia today.”
