Trade relations with India were broken 5 years ago, why is Pakistan eager to establish it again? – pakistan indicates to resume trade with india amid economic crisis mdj theinsiderinsight

Pakistan, which is facing economic crisis, is making every effort to overcome it. In this episode, its Foreign Minister Ishaq Dar said something similar. According to Dar, his government is thinking of resuming business with India. Dar said these things during a press conference held in London on Saturday. Know why Pakistan's bilateral trade with India stopped? What products did we give and take to them? Is some trade still taking place, if yes then what is its route?

Pakistan upset over removal of Article 370

In August 2019, the Central Government of India took a major decision and removed Article 370 from Jammu and Kashmir. This was a provision of the Indian Constitution, which gave special status to Jammu and Kashmir. While removing the section, the Center argued that this will enable the state to connect with the entire country. This also happened. Pakistan became upset over this and in anger canceled its trade relations with India.

Some other reason underneath!

On the other hand, it was also being said that the main reason for the trade suspension was something else. In fact, in the same year, India took the Most Favored Nation (MFN) status from Pakistan and increased the tariff on Pakistani imports by 200 percent. India took this step after the Pulwama attack, which was carried out by Pakistani terrorist group Jaish-e-Mohammed. 40 CRPF soldiers were martyred in the attack. Within 24 hours of the attack, Pakistan's MFN status was removed.

Why do countries take away most favored status?

Let us tell you here that the Tariff and Trade Agreement 1994 of the World Trade Organization says that all the member countries should give MFN status to each other, especially the neighboring countries so that free trade can be easy. Although this is not a firm rule. This is the reason why when relations deteriorate, the first thing countries do is end their status among themselves so that the economic impact of resentment is also visible.

Pakistan had banned more than 12 hundred Indian products

India and Pakistan have been considering each other as most-favored nations since 1996. Even after this, Pakistan made a long list, which included those items which cannot be imported from India. These products were not just one or two, but more than 12 hundred. He said that he is imposing this ban to keep his domestic industries running. However, earlier he had given approval for import of more than 2 thousand products. After negative-listing, only 138 products remained, which it was importing from India.

What things were traded?

He used to import things like cotton, organic chemicals, plastics, nuclear reactors, boilers, machinery and mechanical devices from us. We also kept importing many things from Pakistan, like fruits and dry fruits, salt, sulphur, stones, many types of metals and leather etc. However, even after suspending the trade, Pakistan continued to import medicines because soon after that the era of Covid 19 arrived. India had helped him a lot then.

Which routes trade through?

Despite the closure, transactions between India and Pakistan did not end completely. An Indian Express report quoted the government as saying that some trade was taking place through the Wagah-Attari border, while transactions also continued through the Karachi port. But it is much less than before, not nearly as much as it had been.

Why did Pakistan change its mind now?

Pakistan used to take the most cotton from us. Now it is dependent on Brazil and America for this. Over time, a lot of money is being spent on these products that come from long distances. At present, the economic crisis that Pakistan is going through, imports from distant countries are further burdening it. This is the reason why its Foreign Minister talked about resumption of trade. However, he did not say this directly, but on an international platform. So at the moment it cannot be said what will happen next. Apart from this, India's approval is also necessary.

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