is pakistan is starting trades with india

 

Speaking of hope, it's a rare commodity in Pakistan. Their economy is reaching new lows, their politics is broken, and terror groups are running riot. The man tasked with fixing all of this is Prime Minister Shabah Sharif. Of course, he can't do it all alone; he will need some help. So Sharif decided to visit the city of Karachi. Karachi is the business capital of Pakistan, home to the country's richest people. Prime Minister Sharif held a meeting with Karachi's business community, inviting suggestions from them. Arif Habib, who heads Pakistan's largest securities and investment firm, had two suggestions for Prime Minister Shabah Sharif: restart trade with India and bury differences with Imran Khan. Both suggestions make sense, but will Sharif actually do it? Can he do it?

Karachi's business community is quite powerful. This city is Pakistan's growth engine, making up 20% of the national GDP, 50% of the total government revenue, and 47% of direct tax revenue. Karachi has a lot of clout, but right now, the business leaders are worried. The cost of raw materials is up, fuel and gas prices are up, so Pakistani products are losing competitiveness and cannot keep up in the global market.

This brings us to their suggestions. First is restarting trade with India. Bilateral trade was stopped by Islamabad in 2019 after India revoked Kashmir's statehood. In response, Pakistan suspended trade. Currently, there is no formal trade between India and Pakistan, but recently, there has been a rethink. Pakistan's foreign minister addressed the issue, suggesting that Islamabad should seriously examine restarting trade. India, however, has been clear that terrorism cannot be overlooked.

Two factors to note here: Pakistan's government is under pressure to double exports, and India is a significant market right next door. Pakistan is not accessing it, which upsets the business community. Secondly, Pakistan's economy is only one-tenth of India's, and it will continue to grow with or without Pakistan. Restarting trade could benefit Pakistan more than India, but the stance of the Army, led by General Asim Munir, remains uncertain.

Domestic problems in Pakistan persist, with ongoing negotiations for a new loan from the IMF. The economy and internal security are still works in progress, with the Taliban posing a significant threat. Pakistan finds itself in a bind, needing peace with its neighbors for growth, stable internal politics for peace, and growth and prosperity for stable politics. Rebuilding burnt bridges with India, Imran Khan, and the region seems crucial for Pakistan to navigate these challenges.