ANDALIB AKHTER
India, Pakistan relations have always been unpredictable. The relationship is so volatile and hostile that nobody can guess what will happen next day between the two neighbours.
The latest instance is proposal of resumption of trade ties between the two countries. One day Pakistan expressed its willingness to start trade with India, but just second day the hope of traders of both the countries shattered as proposal was blocked by the country.
The Federal Cabinet of Pakistan on April 1 rejected an Economic Coordination Committee (ECC) suggestion to import cotton yarn and sugar from India, according to Pakistani media.
The decision to turn down the proposal was taken in a cabinet meeting chaired by Prime Minister Imran Khan in Islamabad, hours after Minister for Human Rights Shireen Mazari said cabinet will review the ECC’s decisions related to trade with India.
Taking to Twitter, the minister had said it is only after the cabinet’s approval that the decision will be considered “approved by the government”.
“Just for the record — All ECC decisions have to be approved by cabinet & only then they can be seen as ‘approved by govt’! So today in the cabinet there will be a discussion on ECC decisions including trade with India and then the government decision will be taken! The media should be aware of this at least!” Mazari wrote in a tweet.
On March 31 Finance Minister Hammad Azhar had announced the government’s intention to import sugar and cotton from India. The decision was seen as an important milestone in the slowly warming ties between the two neighbouring countries.
The minister had spoken about the high prices of sugar in Pakistan, noting that the government had allowed sugar to be imported from other countries, but the price of the commodity in the supplier countries had risen considerably.
Pakistan Prime Minister Imran Khan, who is also Minister-in-Charge of Commerce and Textile, had earlier approved the proposals that were put before the EEC.
Paksitan Economic Coordination Committee (ECC) allowed the private sector to import 0.5 million tonnes of white sugar from India, Finance Minister Hammad Azhar said.
The finance minister added that the country will also import cotton from India starting from end-June this year.
He said the government estimated a difference of 15-20 per cent in sugar prices in India as compared to Pakistan. Talking about the reason for allowing the import of cotton from India, Azhar said that there was a high demand for it because Pakistan’s textile exports had increased but last year’s cotton crop was not good.
“The difference [in prices] affects the SMEs (small and medium enterprises. Big industry can buy it from Egypt or other countries.”
The first signs of resumption of trade will bring relief to the region as well as the eco-system around Wagah that became a hostage to the rising tensions. Trade had begun declining even before Pakistan banned all trade with India on August 10, 2019, after the change in status of J&K. India retaliated a day later by imposing 200% duty on Pakistani trade.
Pakistan had lifted the ban on import of medicines and raw material from India in May last year but today was the first biggest step of reversing the complete suspension of trade between the two countries.
Imran Khan had replied to PM Narendra Modi’s greetings on Pakistan’s National Day and expressed the hope that both countries will be able to close the chapter of over five years of acrimony. Though both leaders kept up this civility even when tensions had peaked after Pulwama, their letters this time had centrally positioned the desire for peace.
These rapprochement measures came after a surprise joint statement by military commanders from both countries on February 26 that decided to re-implement the ceasefire agreement on the border.