Why is Pakistan eager to do business with India? What is the plan behind taking back the step taken 5 years ago?

Pakistan’s Foreign Minister Ishaq Dar suggested that they may ‘seriously consider’ resuming trade with India. Pakistan’s Foreign Office gave this clarification after new Foreign Minister Ishaq Dar’s recent remarks in London, where he had said that Pakistan will seriously consider the possibility of restoring trade relations with India, which have been suspended since August 2019.

Goods export worth 1.10 billion dollars

India’s trade with Pakistan still continues through third parties, i.e. Dubai, Singapore and other ports. In the current year alone, India has exported goods worth about $1.10 billion to Pakistan, which include petroleum products, sugar and pharmaceuticals. Import from Pakistan is negligible. Two years ago, Pakistan had lifted the ban on import of life-saving medicines from India. At present, this is the only direct trade that takes place and that too because India believes in humanitarian aid to any neighboring country. Pakistan decided to downgrade relations with India and cut all trade ties after New Delhi abrogated Article 370 and Article 35(A) on Jammu and Kashmir. India removed the ‘Most Favored Nation’ status given to Pakistan after the death of 40 Central Reserve Police Force (CRPF) personnel in a suicide bomb attack by Pakistan-based terrorist group Jaish-e-Mohammed in Pulwama on February 14, 2019. .

Timing of statements of Foreign Minister and Pak PM

Interestingly, on the day Ishaq Dar made the statement, Pakistan Prime Minister Shehbaz Sharif reiterated that India and Pakistan can move forward only after resolving the issue of Jammu and Kashmir. His statement was echoed by a statement and tweet by a junior India-based diplomat, who said India and Pakistan need to resolve all outstanding bilateral issues, including Jammu and Kashmir. As far as India is concerned, its only issue with Pakistan is terrorism because Jammu and Kashmir is not an issue whose status is finally settled forever.

Why does Pakistan want to do business with India?

There is a lot of pressure on the Pakistani business community to do business as they are paying extra duty while getting imports from India through third countries. Pakistan’s economy is in a very poor condition and foreign debts and liabilities have almost doubled to $125 billion. Its domestic debt has increased sixfold in nominal terms since 2011. For fiscal year 2024, Pakistan faces an estimated debt maturity of $49.5 billion with 30 percent as interest payments.