In the midst of differences between India-Pakistan, the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) hinted on suspending trade ties with India. The Pak trade body feels under current Indo-Pak relationship, it is not a compulsion to continue trade with India till situation improves at international level. There is unison consensus on the stand by trade and business community in Pakistan. The meeting between the two Prime Ministers on the sidelines of the Paris climate summit; the meeting between the two National Security Advisors in Bangkok; Sushma Swaraj’s visit to Islamabad for the Heart of Asia summit; and the recent surprise visit of Narendra Modi to Lahore to greet and meet Nawaz Sharif on his birthday have rekindled hope for the two countries. And surprisingly today the informal trade between India and Pakistan is nearly two times the trade through formal channels. Factors such as high tariffs, political tension, infrastructure impediments, ease of trading goods via third countries have generated a thriving industry for informal trade between the two South Asian giants under such conditions does such a stoic stand of Pakistan trade body stand. India should revoke the Most Favoured Nation (MFN) status it unilaterally accorded to Pakistan in 1996. Most Favoured Nation status means that Pakistan must be treated at par with any other country that trades with India. Now withdrawing MFN status to Islamabad could mark an important – even if symbolic – attempt by New Delhi to demonstrate that it is taking tough action. But it won’t have any real effect: volumes of trade between the two countries are too small for sanctions to actually make a difference. The relationship between the two countries hit another low, with attack on Indian army camp in Uri in Jammu and Kashmir. Uptill now Trade, it seems, is the only aspect of Indo-Pak relations that has not been hit by the deteriorating ties between the two countries. But now Pak trade association talking about snapping ties India too would have to reciprocate on the same wave-length.
