India Pakistan question of trade

Syllabus: GS-II, Subject: International Relations, Topic: India and its neighborhood, Issue: India-Pakistan

Context: Pakistan’s Foreign Minister said his country may “seriously examine” the question of resuming trade with India.

Reasons for reconsideration-

  • Economic pressures and potential logistical efficiency drive the resumption of trade.
  • Pakistan’s declining relative power and regional tensions with Afghanistan, Iran.


  • Lack of consensus within Pakistan
  • India insists on addressing terrorism before advancing trade talks.
  • Domestic politics in both countries complicate the path to improved economic ties.

The way ahead

  • Resuming bilateral trade could benefit both economies, particularly in sectors like agriculture.
  • Private diplomacy may pave the way for future negotiations.
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