Background of Trade Relations

Indian Foreign Minister Subrahmanyam Jaishankar stated that there have been no trade discussions between India and Pakistan since last year. In response to a question from a reporter at the Indian embassy in Washington, Jaishankar noted that neither country had proposed resuming trade. He emphasized that India has not halted trade with Pakistan, explaining that the Pakistani government decided to stop trade in 2019. "Our concern is that they never granted us Most Favoured Nation (MFN) status, despite us granting it to them," Jaishankar remarked. He added, "Every country has the sovereign right to make its own decisions regarding international commitments and responsibilities. We can hold differing views on this matter." Pakistan downgraded its relations with India after the Modi administration unilaterally altered the special status of Jammu and Kashmir in August 2019, a move that Islamabad believes hindered the possibility of dialogue between the two nations. Pakistan has linked the normalization of relations with India to the restoration of the special status of Jammu and Kashmir.

Current State of Affairs

Despite the strained relations, both countries agreed to reaffirm the 2003 ceasefire agreement along the Line of Control in February 2021. In August of the previous year, the Pakistani Foreign Office confirmed that no discussions were taking place regarding the resumption of bilateral trade, attributing this to India's unilateral actions in Jammu and Kashmir in 2019. The then-Foreign Office Spokesperson, Mumtaz Zahra Baloch, stated, "This situation remains unchanged." However, the Pakistan Muslim League-Nawaz (PML-N) government has shown a willingness to reassess trade relations with India. PML-N President Nawaz Sharif expressed hope for a meeting with Indian Prime Minister Narendra Modi in the near future. "I have always supported good relations with India," Nawaz remarked in an interview, indicating optimism about reviving the relationship. In 2023, Nawaz reiterated the importance of improving relations with neighboring countries, including India and Afghanistan. He recalled that during his previous terms, two Indian prime ministers—Atal Bihari Vajpayee in 1999 and Narendra Modi in 2015—visited Pakistan. He also congratulated Modi on his reelection for a third term as Indian Prime Minister. by pakishnews.com