Economic cooperation between india and pakistan relationship

economic cooperation between india and pakistan relationship

Quite a few steps for normalisation of relations envisaged in the Simla ments of India al!d Pakistan signed a Trade Protocol on November 1 97 4. Economic relations between India and Pakistan over the past 50 years have been marginal. Apr 5, The impact of the tensions on the trade relationship is evident, as seen The current trade between India and Pakistan amounts to $ billion.

Bilateral trade between India and Pakistan is influenced by political trends. Those ties, nevertheless, show an upwards momentum. They require more attention, however, if they are to reach their full potential. The two countries are culturally similar, sharing similar languages, norms and institutions. With care, those commonalities could be used by both countries to mitigate adversarial frameworks. This has been due to the legacy of a violent partition that witnessed inter-communal strife and, since then, the inability of various elected governments in Pakistan to fully control domestic and foreign policy.

The two countries have, consequently, fought several wars that ended with no real result or in victory of sorts to India. Neither country has benefitted in any concrete term from these wars; it could be argued, in fact, that they have only served to constrain the economic development of India and Pakistan, irrespective of the fact that India witnessed the elimination of the two-front threat posed by East and West Pakistan when East Pakistan became independent Bangladesh in Bilateral trade and commercial ties have remained in place between the two rivals despite their various ups and downs, however.

Partition could not, however, immediately remove or reduce cultural commonalities such as language, social norms, gastronomic tastes and other cultural ties.

These divided families used their geographic locations to trade, sourcing products from both sides of the border and maintaining their cultural and familial ties. Analysis Bilateral trade ties between India and Pakistan have undoubtedly remained hostage to the political vagaries of the relationship but only in a limited fashion.

One indication of this is the fact that the two sides concluded fourteen trade agreements between and Inthe year the two countries went to war over Kashmir again, Indian banks continued to operate their branches in Pakistan. Following that war, however, and the degree of antipathy generated on both sides in the aftermath of the war, trade relations between the two countries all but came to a standstill for over eight years. The two countries came together again in and a protocol on resuming trade relations was signed in That trade was very limited, however, and conducted on a very small number of mutually agreed upon items.

There were, additionally, trade-related disagreements between India and Pakistan even when trade was conducted. Infor instance, India decided to devalue the rupee believing that Pakistan would do likewise.

India argued that the combination of higher raw jute prices, coupled with the devaluation of its currency, would price jute beyond its reach. Pakistan retaliated by imposing restrictions on the importation of some Indian manufactured goods. I regard it as highly unfortunate that, instead of facilitating the normal flow of trade between the two countries, the Government of India should have embarked on a boycott of trade with us.

While fixation of the rate of currency is entirely a question for each country to decide with reference to its circumstance, trade is a matter of prices. India, however, has taken the extraordinarily unfriendly step of boycotting trade with us. Pakistan had developed an import substitution policy in the s, effectively the creation of a manufacturing base. Bilateral trade was truncated, however, first by the war of and then the war.

These two wars and, later, the civil unrest in Kashmir in the s had a very detrimental effect on bilateral trade because they introduced a military element into what had been, until then, a purely commercial paradigm. They persuaded the precursor to the World Trade Organisation, the Generalised Agreement on Tariffs and Trade, to insert an India-Pakistan-specific special clause into the Text of the Generalised Agreement on Tariffs and Trade that relates to international trade to reflect this circumstance.

INDIA & Pakistan Relations(CSS Regarding)

Taking into account the exceptional circumstances arising out of the establishment of India and Pakistan as independent states and recognising the fact that they have long constituted an economic unit, the contracting parties agree that the provisions of this Agreement shall not prevent the two countries from entering into special arrangements with respect to the trade between them, pending the establishment of their mutual trade relations on a definitive basis.

The situation turned completely in the early s when, following the collapse of its strategic partner, the Soviet Union, and realising that it would need to enter fully into the international community if it were not to become a failed state, India embraced international trade with both arms and, subsequently, saw its economy grow rapidly.

This step was taken as part of the attempt by the two countries to lay the Kashmir issue to rest by the thirtieth anniversary of their independence. New Delhi terminated all air- and land-borne trade with Pakistan following the attacks on its Parliament in Decemberwhich it alleged were carried out by Pakistani-based militants.

That imposition remained in force until Pakistan later withdrew from the remaining portion under international pressure and high casualties. Other territorial claims You can help by adding to it.

India–Pakistan relations - Wikipedia

March The relations are locked in other territorial claims such as the Siachen Glacier and Kori Creek. Water is cited as one possible cause for a conflict between the two nations, but to date issues such as the Nimoo Bazgo Project have been resolved through diplomacy.

East Bengali refugees InIndia recorded close to 1 million Hindu refugees, who flooded into West Bengal and other states from East Pakistan now Bangladeshowing to communal violence, intimidation and repression from authorities. The plight of the refugees outraged Hindus and Indian nationalists, and the refugee population drained the resources of Indian states, which were unable to absorb them.

Although many Indians termed this appeasement, Nehru signed a pact with Liaquat Ali Khan that pledged both nations to the protection of minorities and creation of minority commissions. Khan and Nehru also signed a trade agreement, and committed to resolving bilateral conflicts through peaceful means. Steadily, hundreds of thousands of Hindus returned to East Pakistan, but the thaw in relations did not last long, primarily owing to the Kashmir conflict.

Afghanistan—India relations and Afghanistan—Pakistan relations Afghanistan and Pakistan have had their own historic rivalry over their border, the Durand Linewhich numerous Afghan governments have refused to recognize as the border.

This has led to strong tensions between the two countries and even military confrontationsresulting in Pakistan as victorious. Pakistan has long accused Afghanistan of harboring Baloch separatist rebels and attempting to sponsor separatist tendencies amongst its Pashtun and Baloch populations, going as far back as the s. It has been believed that Pakistan during the s, then under Zulfikar Ali Bhuttoin retaliation began supporting Islamist factions in Afghanistan. The later Soviet intervention in Afghanistan to prevent further escalation and eventual Islamist takeover of the country proved disastrous afterwards.

The United States and its allies feared direct Soviet involvement in Afghanistan and began aiding Pakistan's support for the Afghan Mujaheddin, in hopes of crippling the Soviet Union. The Soviet-Afghan war turned out to be a stalemate with heavy casualties on all sides and costly for the Soviets. Under international agreement, the Soviets withdrew. But various Afghan factions fought one another and their external supporters, including the Soviet Union, Iran, Pakistan and others disagreed on which should be in power.

economic cooperation between india and pakistan relationship

Continued rival proxy support led to the civil warin which Pakistan supported in the Talibanseeking to secure its interests in Afghanistan and providing strategic support, while India and Afghanistan's other neighbors backed the Northern Alliance.

After the Taliban defeated the Northern Alliance in much of Afghanistan in the Afghan Civil Warthe Taliban regime continued to be supported by Pakistan — one of the three countries to do so — before the 11 September attacks. India firmly opposed the Taliban and criticized Pakistan for supporting it. India established its links with the Northern Alliance as India officially recognized their government, with the United Nations.

India's relations with AfghanistanPakistan's neighbor, and its increasing presence there has irked Pakistan.

India-Pakistan Relations – Part Three: Economic and Cultural Aspects

The Indian embassy bombing in Kabul was a suicide bomb terror attack on the Indian embassy in KabulAfghanistan on 7 July at 8: Bush confronted Pakistani Prime Minister Yousuf Raza Gilani with evidence and warned him that in the case of another such attack he would have to take "serious action". Insurgency in Jammu and Kashmir According to some reports published by the Council of Foreign Relationsthe Pakistan military and the ISI have provided covert support to terrorist groups active in Kashmirincluding the al-Qaeda affiliate Jaish-e-Mohammed.

Many Kashmiri militant groups also maintain their headquarters in Pakistan-administered Kashmirwhich is cited as further proof by the Indian government. Author Gordon Thomas stated that Pakistan "still sponsored terrorist groups in the state of Kashmir, funding, training and arming them in their war on attrition against India.

economic cooperation between india and pakistan relationship

A car bomb exploded near the Jammu and Kashmir State Assembly on 1 Octoberkilling 27 people on an attack that was blamed on Kashmiri separatists. It was one of the most prominent attacks against India apart from on the Indian Parliament in December The dead bodies of the terrorists and the data recovered from them revealed that Pakistan was solely responsible for the activity.

On 13 Julyarmed men believed to be a part of the Lashkar-e-Toiba threw hand grenades at the Qasim Nagar market in Srinagar and then fired on civilians standing nearby killing twenty-seven and injuring many more.

Abdul Ghani Lone, a prominent All Party Hurriyat Conference leader, was assassinated by an unidentified gunmen during a memorial rally in Srinagar. The assassination resulted in wide-scale demonstrations against the Indian occupied-forces for failing to provide enough security cover for Mr. A car bomb exploded near an armoured Indian Army vehicle in the famous Church Lane area in Srinagar killing four Indian Army personnel, one civilian and the suicide bomber. Terrorist group Hizbul Mujahideenclaimed responsibility for the attack.

A terrorist attack on 29 July at Srinigar 's city centre, Budshah Chowk, killed two and left more than 17 people injured. Most of those injured were media journalists. No Terrorist group claimed responsibility for the attack. A terrorist attack by four heavily armed terrorists on 18 Septembernear the town of Uri in the Indian state of Jammu and Kashmir, killed 18 and left more than 20 people injured.

It was reported as "the deadliest attack on security forces in Kashmir in two decades". India blamed Pakistan for carrying out the attacks, an allegation which Pakistan strongly denied and one that brought both nations to the brink of a nuclear confrontation in — However, international peace efforts ensured the cooling of tensions between the two nuclear-capable nations. The plane was hijacked on 24 December approximately one hour after take off and was taken to Amritsar airport and then to Lahore in Pakistan.

After refueling the plane took off for Dubai and then finally landed in KandaharAfghanistan. Under intense media pressure, New Delhi complied with the hijackers' demand and freed Maulana Masood Azhar from its captivity in return for the freedom of the Indian passengers on the flight. The decision, however, cost New Delhi dearly.

India–Pakistan relations

Maulana, who is believed to be hiding in Karachilater became the leader of Jaish-e-Mohammedan organisation which has carried out several terrorist acts against Indian security forces in Kashmir. The Fort houses an Indian military unit and a high-security interrogation cell used both by the Central Bureau of Investigation and the Indian Army.

The terrorists successfully breached the security cover around the Red Fort and opened fire at the Indian military personnel on duty killing two of them on spot. The attack was significant because it was carried out just two days after the declaration of the cease-fire between India and Pakistan. The attack was carried out on 25 Septemberjust few days after state elections were held in Jammu and Kashmir. Two identical letters found on both the terrorists claimed that the attack was done in retaliation for the deaths of thousands of Muslims during the Gujarat riots.

Though no terrorist group claimed responsibility for the attacks, Mumbai Police and RAW suspected Lashkar-e-Toiba 's hand in the twin blasts. Before the terrorists could reach the main disputed sitethey were shot down by Indian security forces. One Hindu worshipper and two policemen were injured during the incident.

This was the first major military standoff between India and Pakistan since the Kargil War in The military buildup was initiated by India responding to a Indian Parliament attack and the Jammu and Kashmir legislative assembly attack.