Key Points:
- Dr. S. Jaishankar confirmed no trade talks have occurred between India and Pakistan since 2019.
- India has not halted trade; Pakistan implemented measures to stop trade following the abrogation of Article 370.
- The Foreign Office of Pakistan stated in August 2023 that trade with India is not currently being considered.
- Foreign Minister Ishaq Dar indicated a potential reevaluation of trade ties, acknowledging the impact on Pakistan’s business community.
- Jaishankar’s remarks highlight the ongoing challenges in mending trade relations between the two countries.
India’s External Affairs Minister Dr. S. Jaishankar confirmed that there have been no ongoing trade discussions between India and Pakistan. Speaking to reporters at the Indian embassy in Washington, Jaishankar emphasized that no proposals have been made to resume trade relations between the two neighboring countries.
Jaishankar’s remarks come during his visit to the United States, where he attended the inauguration ceremony of the 47th US President, Donald Trump. When questioned about the current state of trade relations with Pakistan, he stated, “After last year, there have been no talks with Pakistan about trade, nor has any initiative come forward from their side.”
The minister pointed out that India has not halted trade, asserting that any measures to stop trade were implemented by Pakistan in 2019. He highlighted that India had granted Pakistan the Most Favoured Nation (MFN) status, while Pakistan had not reciprocated. “Our concern from the beginning was that they never granted us MFN status, even though we granted it to them,” Jaishankar noted.
Jaishankar further elaborated on the sovereign rights of nations to make their own decisions regarding international commitments. “Every country has the sovereign right to take its decisions about what are their international commitments and responsibilities. We can have our respective views on it,” he concluded.
Current Status of Trade Relations
The trade relations between India and Pakistan have been strained since August 2019, when Pakistan, under then-Prime Minister Imran Khan, downgraded its diplomatic ties with India. This move followed India’s abrogation of Article 370, which had granted special status to the region of Jammu and Kashmir. In the wake of these developments, Pakistan severed trade ties with India.
In August 2023, the Pakistani Foreign Office reiterated that trade with India was not on the agenda, citing the unchanged situation in Kashmir. Mumtaz Zahra Baloch, the spokesperson for the Foreign Office, stated, “The situation remains intact, and at this point, there are no bilateral talks between the two countries concerning bilateral trade between Pakistan and India.”
Despite the ongoing tensions, there have been indications from Pakistani officials about a potential reevaluation of trade ties. In March 2024, Foreign Minister Ishaq Dar mentioned that relevant stakeholders would be “seriously examined” regarding the possibility of re-establishing trade relations with India. He acknowledged that the deteriorated trade ties have adversely affected the business community in Pakistan.
The previous government led by Prime Minister Shehbaz Sharif had also expressed a willingness to reconsider trade relations with India, indicating a potential shift in policy. However, Jaishankar’s recent comments suggest that both nations remain distant from restoring trade ties.
As the situation evolves, it remains to be seen whether diplomatic efforts will lead to a thaw in relations and a resumption of trade between India and Pakistan.
