Pakistan Business Forum (PBF) has said that Pakistan’s imports from India saw a downward trajectory, moving from USD 2,000 million in 2014 to USD 1,700 million in 2017 highlighted in the above figure since the BJP government came into power in New Delhi. At the end of the BJP’s first term, India’s exports to Pakistan hiked to about USD 1,930 million. During the BJP’s first term (2014-19), the trade ties with Pakistan took a dip, but during the BJP’s second term (2019-24), trade only saw a declining graph moving from USD 1,930 million to USD 0.121 million in 2022. India announced two withdraw ‘Most Favoured Nation (MFN)’ status from Pakistan and imposed 200 per cent customs duties on all Pakistani imports in February 2019. New Delhi's actions created significant obstacles for the access and viability of Pakistani products in the Indian market. In April 2019, India also unilaterally suspended the cross-LoC trade, alleging that it was being ‘misused.’ Despite this, Pakistan did not retaliate to these Indian measures.

It was only after New Delhi’s unilateral and illegal actions of 5th August 2019 with regard to the Illegally Occupied Jammu and Kashmir (IIOJK) that Pakistan decided to suspend bilateral trade. Even then, the transit trade to and from Afghanistan was not affected. Speaking at a webinar of regional connectivity, Vice President PBF Ahmad Jawad said that BJP government’s actions in the political domain directly impacted the trade relations between the two countries as it has adopted an inflexible and hardening stance towards Pakistan. The Pakistan Business Forum believes that India and Pakistan should consider resumption of trade and restoring the upgradation of diplomatic ties. The PBF official considered trade to be a vital stop on the re-engagement plan and also benefits for the trading and business communities on both sides. We have even seen that the Lok Sabha candidates from Amritsar are demanding to reopen trade and even facilitating tourism with Pakistan through the Attari-Wagha land route and to reconsider India-Pakistan trade policy.

Jawad also thinks that the view in India on trade with Pakistan remains marked by suspicion owing to prejudice towards Pakistan in Modi’s India, including India considers itself in a much-strengthened position as compared to Pakistan due to its economic size and evidently wishes to dictate its terms of engagement on trade matters. However we believed to be in an advantageous position as it could be a gateway for transit trade from India to Afghanistan, as Iran and Central Asia, areas that are rich in energy. He also said if Delhi mis-caucasted that India may have crafted a regional connectivity network with all states in South Asia bypassing Pakistan, it won't work.  Although trade between neighbours has its intrinsic benefits, Islamabad recognizes the challenges that the issue of trade with India faces on account of political and diplomatic factors as well as unfair trade practices. PBF being an advocacy body further stated a fundamental rethink on the part of New Delhi of its overall approach towards Pakistan appears to be in order; as resuming trade could help to create conditions for a more durable peace. The alternative is a volatile relationship with huge costs for both countries.

Credit: Independent News Pakistan