In a major development that is quite likely to increase peace between New Delhi and Islamabad, Pakistan’s top most Economic Coordination Council has allowed the import of cotton and yarn from India, according to the reports. The recent development would be a step by Pakistan towards reviving suspended trade ties between the two nuclear-armed neighbors.
It is to be noted that Pakistan’s Economic Coordination Council is the top decision-making body in the country, thus the decision by a high authority in Pakistan holds value and credibility. The decision comes after a meeting that was called by the Pakistan Ministry of Commerce.
The following economic decision by Pakistan authorities comes after India’s absolute advantage in producing sugar and cotton, as India is the world’s biggest producer of cotton and the second biggest producer of sugar.
Exports to its neighbor will dramatically reduce surpluses that are weighing on its local markets, while in return it will help Pakistan to lower soaring sugar prices ahead of Ramadan. Reportedly, five dealers have informed that Pakistani buyers had already started inquiring about buying Indian sugar and cotton, which was being offered at lower rates than other countries.
It is to be noted that a friendly economic hand by Pakistan is extended after a gradual easing of decades-long tensions between the two neighbors that have fought three wars since the partition of 1947. In February 2021, the militaries of both countries had reportedly released a rare joint statement announcing a ceasefire along the disputed border in Kashmir.
As a crucial step in bilateral relations, letters were also exchanged between Indian Prime Minister Narendra Modi and his Pakistan counterpart Imran Khan. It was reported that first, PM Modi had written a letter greeting Khan on Pakistan National Day, and had later responded with proposed result-oriented talks.
However, during the ‘Heart of Asia’ conference, where External Affairs Minister S Jaishankar and his counterpart Shah Mehmood Qureshi were present, no bilateral talks were held.