Revival of India-Pakistan Sample Clauses

Revival of India-Pakistan. Trade Relations 5
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Revival of India-Pakistan. Trade Relations What is the issue? • The recent trade restrictionand the level of trade despite this are indicative of a possibility of resumption of India-Pakistantrade relations. • This gives a reason to push for the revival of trade dialogue between the two countries. What was the recent restriction on trade? • In 2019, India and Pakistan undertook trade-restrictive measures against each other, perhaps the most severe in several decades. • The Pulwama terror attack in Kashmir in February 2019 and cross-border air strikes played a role in this. • After these, India withdrew the Most Favoured Nation (MFN) status of Pakistan. • India also imposed a customs duty hike of 200% on imports. • Later, when India revoked the autonomy of Jammu and Kashmir, Pakistan suspended bilateral trade. Is this the first time? • Trade curbs have been applied several times in the past too. • But, such measures have been reversed to create a trade enhancing environment. • Most notable is the protocol on resumption of trade in 1974 after a hiatus of 9 years following the India- Pakistan war in 1965. • Both countries worked on a positive list of commodities for some years, which expanded over the years. • This helped stabilise domestic prices and take care of seasonal shortages and food security. • So, despite the current trade ban setback, the Indo-Pak history offers some optimism towards reviving the trade dialogue. What is the present condition? • Trade has been recorded in the first 11 months of the financial year 2020-21. • During 2020-21 (April-February), the recorded bilateral trade was $280 million. • Of this, India‘s exports to Pakistan were $278 million and imports were $2 million. • Nearly 77% of India‘s exports comprised vaccines, pharmaceutical products and products of chemical and allied industries. • Interestingly, despite the trade ban, sugar was already being exported to Pakistan. • It was the second most important item, accounting for 15% of India‘s total exports. • Dates were the most important item being imported from Pakistan, accounting for 31% of total imports, followed by ethyl alcohol, which accounted for 17% of total imports. What does this indicate? • The overall value of trade with Pakistan may not be significant. But the number of items traded is certainly significant. • Within a month of suspending bilateral trade with India, Pakistan lifted the ban on the import of medicines and raw material from India. • This was to avert any crises and ensure that ...

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