Pakistan seeks to heal ties with India

Dar initiates in-house talks on trade with neighbor

ISLAMABAD:

Foreign Minister Ishaq Dar said on Thursday he started consultations with stakeholders on the resumption of trade ties with India in yet another sign of the government’s eagerness to seek rapprochement with the neighboring country.

Dar told reporters at the Foreign Office that he had already begun discussions with the business community to build consensus on the thorny issue. Once consensus was built among the business community, he added, he would then start a consultation process with other stakeholders.

Any decision on the reopening of the trade would be taken after the input from all the relevant stakeholders, he said.

Dar first hinted at the possibility of resumption of trade ties with India last month during a press conference in London. He was of the view that the business community in Pakistan wanted the resumption of trade ties between Pakistan and India.

His statement drew criticism from opposition ranks and critics, who termed it ill-timed. However, Dar on Thursday defended his earlier remarks, stating that many businessmen told him that they were importing goods from India through a third country, which cost them more, and hence they were in favor of the resumption of direct trade ties between the two countries.

Islamabad severed trade ties with New Delhi in the aftermath of India’s decision to revoke the special status of the disputed Jammu and Kashmir region in August 2019. Since then, Pakistan has consistently maintained that normalization would happen only after Delhi reverted to the pre-August 5, 2019 status quo.

There were efforts, however, in the past to partially reopen trade, first during the time of the Pakistan Tehreek-e-Insaf (PTI) government and second time when the Pakistan Democratic Movement (PDM) was in charge.

In March 2021, the Economic Coordination Committee (ECC) of the cabinet gave a go-ahead to partially reopen trade with India. Then Prime Minister Imran Khan, who held the additional charge of the commerce minister, approved the ECC decision. However, the proposal was shot down by the prime minister at the federal cabinet after some members termed the move as political suicide.

The resumption of trade was part of behind-the-scene efforts by the two sides to normalize their relationship. The secret diplomacy earlier led to the renewal of the 2003 ceasefire deal along the Line of Control (LoC).

There was another push to reopen trade with India after the PTI government was replaced by the coalition government of Prime Minister Shehbaz Sharif. Then Finance Minister Dr Miftah Ismail got the go-ahead from the prime minister to import tomatoes and onions from India to tackle the rising inflation.

Miftah told The Review show on Express News recently that in one of the international conferences he bumped into the Indian foreign minister. During that brief conversation, he expressed Pakistan’s intention to reopen trade with India. Miftah said the Indian foreign minister had told him that he would speak to the government. “However, he would never get back to me,” Miftah added.

Observers believe that the hard-line government of India may not be keen to restore trade links with Pakistan. They are also of the view that any progress on trade or other ties would happen after the Indian general elections. India is scheduled to go for national elections in 7 phases over the next two months. The new government would take charge in June.

Dar’s statement on the possibility of resumption of trade with India indicated the longstanding view of three-time former prime minister Nawaz Sharif, who always pushed for friendly ties with the neighboring country.

Meanwhile, Foreign Minister Dar confirmed to the reporters that his Afghan counterpart invited him to visit Kabul. The invitation was extended last month when Afghan Interim Foreign Minister Amir Khan Muttaqi telephoned him after he was appointed foreign minister.

Dar insisted that engagement was the way forward to resolve any issues. He said he would travel to Kabul provided the prime minister and other stakeholders gave the go-ahead.

Relations between Pakistan and Afghanistan have been tense for months over the unresolved issue of banned Tehreek-e-Taliban Pakistan (TTP). The continued cross-border terrorist attacks have pushed Pakistan to limit its engagement with the Kabul regime.

Islamabad has taken a series of measures including repatriation of undocumented Afghans, plugging loopholes in the Afghan transit facility, and other measures to put pressure on the Taliban government. However, those efforts made little impact as terrorist groups continued to target from across the border ambassador US Ambassador Donald Blome held a meeting with Foreign Minister Ishaq Dar on Thursday to delve into recent developments in the region.

Acting spokesperson for the US Mission, Thomas Montgomery, conveyed the essence of the dialogue in a statement issued shortly after the meeting without specifically mentioning the recent regional events.

Ambassador Blome reiterated the United States' unwavering commitment to collaborating closely with the government and the people of Pakistan. He underscored that ensuring prosperity and security for Pakistan remains among the highest priorities for the United States.