India-Pakistan Relations

India-Pakistan Relations
India desires peaceful, friendly and cooperative relations with Pakistan, which
require an environment free from violence and terrorism.
In April 2010, during the meeting between Prime Minister and then Pak PM Gilani
on the margins of the SAARC Summit (Thimpu) PM spoke about India's willingness to
resolve all outstanding issues through bilateral dialogue. Follow up meetings were held
by the two Foreign Ministers (Islamabad, July 2010), and the two Foreign Secretaries
(Thimphu, February 2011). During the latter meeting it was formally agreed to resume
dialogue on all issues: (i) Counter-terrorism (including progress on Mumbai trial) and
Humanitarian issues at Home Secretary level; (ii) Peace & Security, including CBMs,
(iii) Jammu & Kashmir, and (iv) promotion of friendly exchanges at the level of Foreign
Secretaries; (v) Siachen at Defence Secretary-level; (vi) Economic issues at Commerce
Secretary level; (vii) Tulbul Navigation Project/ Wullar Barrage at Water Resources
Secretary-level; and (viii) Sir Creek (at the level of Surveyors General/ Additional
Secretary).
Since then several efforts have been made by the two countries to enhance
people-to-people contacts. Cross-LoC travel and trade across J&K, initiated in 2005 and
2008 respectively, is an important step in this direction. Further, India and Pakistan
signed a new visa agreement in September 2012 during the visit of then External Affairs
Minister to Pakistan. This agreement has led to liberalization of bilateral visa regime.
Two rounds of the resumed dialogue have been completed; the third round
began in September 2012, when the Commerce Secretaries met in Islamabad. Talks on
conventional and non-conventional CBMs were held in the third round in December
2012 in New Delhi. A meeting of the Working Group on Cross-LoC (Line of Control)
trade and travel CBMs was held in New Delhi on March 4, 2014 in which issues
including strengthening of standard operating procedures were discussed.
Pakistan's PML (N) party received a strong mandate in the elections held on 11
May 2013 which allowed its leader Mian Nawaz Sharif to form a new Government. In his
letter of congratulations (May 12), Prime Minister expressed desire to work with the new
Pakistan government "to chart a new course" in bilateral ties. PM's Special Envoy
Ambassador S.K. Lambah met Nawaz Sharif on 27 May 2013 in Lahore to personally
convey PM's message even before the latter formally assumed office - a gesture that
was appreciated by the new Pakistan PM. Ambassador Shahryar Khan also visited
India (4-6 July) as PM Nawaz Sharif's Special Envoy and met PM (5 July); during the
meeting he also handed over a personal letter from Prime Minister Nawaz Sharif to PM.
Following the dastardly attack on 6 Aug 2013 in which five Indian jawans were
killed along the LOC with the involvement of Pak army, India called upon Pakistan to
maintain ceasefire and uphold the sanctity of LOC, which is the most important
Confidence Building Measure between the two countries and, together with Pakistan's
assurance not to allow territory under its control to be used for anti-India activities,
which formed the basis of bilateral dialogue. It was conveyed that such unprovoked
incidents on LOC by the Pak Army would have consequences for our bilateral ties.
In their meeting on the margins of the UN General Assembly on September 29,
2013 in New York, Prime Minister and PM Nawaz Sharif agreed that the precondition for
a forward movement in the relationship, which they both desired, was an improvement
of the situation on the LoC where there had been repeated ceasefire violations and
incidents. They decided to task the Directors General of Military Operations (DGMOs) to
suggest effective means to restore the ceasefire and a way forward to ensure that that
remains in force and in place. The meeting of the DGMOs took place at Wagah on
December 24, 2013.
Terrorism
Terrorism emanating from territory under Pakistan's control remains a core
concern in bilateral relations. This is precisely why India has sought a firm and abiding
commitment from Pakistan that it will not allow its territory and territory under its control
to be used for the aiding and abetting of terrorist activity directed against India and for
providing sanctuary to such terrorist groups. India has consistently stressed to its
interlocutors the need for Pakistan to fulfill is oft-repeated assurances, given to us at the
highest level, that territory under its control would not be allowed to be used for anti-
India activities in any manner. It is critical for the security of the region that Pakistan
undertakes determined action to dismantle the terrorist networks, organizations and
infrastructure within its own territory. However, internationally sanctioned entities such
as Lashkar-e-Toiba (LeT) continue to function in Pakistan under various aliases. LeT's
leader Hafiz Saeed and his followers also continue to incite violence against India.
Moreover, in the recent months, key terrorists such as Masood Azhar and fugitives from
Indian law have resurfaced in Pakistan.
Progress in the ongoing Mumbai terror attack case in Pakistan is seen as an
important marker of Pakistan's commitment to combat terrorism emanating from its soil.
The trial of seven persons in an Anti Terrorism Court (ATC) for their involvement in the
2008 Mumbai terror attacks has however proceeded at a glacial pace. The trial has
been subject to repeated adjournments, non-appearances of lawyers, and frequent
changes of prosecution lawyers and judges. A Pak Judicial Commission undertook its
second visit to India in September 2013 and cross-examined key prosecution
witnesses. Prime Minister Nawaz Sharif told PM in New York on September 29, 2013
that effective action on bringing the perpetrators of the Mumbai attacks to book was
indeed Pakistan's intention, and now that the Judicial Commission had returned to
Pakistan after gathering depositions and evidence in India, there would be further
progress. Hearings in the case, however, continue to be disrupted for one reason or
another.
Economic Ties
Formally accounted India-Pakistan bilateral trade in 2012-13 was US$2.6 billion
(Indian exports to Pakistan were US$2.064 bn and imports from Pakistan US$ 541
million). Pakistan exports to India crossed $500 million mark for the first time during this
period. [Trade through third countries is variously estimated at US$ 3.5-4 billion]. Main
items of export from India to Pakistan are: cotton, organic chemicals, food products
including prepared animal fodder, vegetables, plastic articles, man-made filament,
coffee, tea and spices, dyes, oil seeds and olea, etc. Main items of import by India from
Pakistan are: copper and copper articles, fruits and nuts, cotton, salt, sulphur and earths
and stones, organic chemicals, mineral fuels, rubber plastic products, wool, etc.
MFN Status
India had accorded MFN status to Pakistan in 1996. A cabinet decision of
November 2011 by Pakistan to reciprocate remains unimplemented. Pakistan,
however, substituted in March 2012 a 'positive list' of a little more than 1950 lines,
permitted for import from India, by a 'Negative List' of 1209 lines which cannot be
imported from India.
In August 2012, India announced reduction of 30% in its SAFTA Sensitive List for
non-Least Developed Countries, bringing down tariff on 264 items to 5% within a period
of three years. This measure benefited Pakistan's exports to India in sectors of key
interest to Pakistan.
During the Commerce Secretary-level talks September 20-21, 2012 in
Islamabad, a roadmap was established to move forward for full normalization of bilateral
trade. However, in the absence of the first step of the road map, viz, Pakistan permitting
all importable items through Wagah/ Attari land route (as against current only 137), the
roadmap remained unimplemented.
In their meeting in New Delhi on January 18, 2014, Commerce Ministers of India
and Pakistan reaffirmed the commitment to expedite establishment of normal trading
relations and in this context to provide Non-Discriminatory Market Access (NDMA), on a
reciprocal basis. They decided to intensify and accelerate the process of trade
normalisation, liberalization and facilitation and to implement the agreed measures
before the end of February 2014. Implementation of these steps, inter alia, removal of
'Negative List' and removal of restrictions on the number of importable items via Wagah
land route by Government of Pakistan is awaited.
Trade Agreements
With a view to build confidence of the business community on both sides,
representatives of various trade regulatory bodies of India held meetings over 2011-12
with representatives of leading chambers of commerce and industry of Pakistan to
discuss matters pertaining to trade regulations, standards, labeling and marking
requirements. Three agreements, viz., Customs Cooperation Agreement, Mutual
Recognition Agreement and Redressal of Trade Grievances Agreement, were signed
during the Commerce Secretaries' talks on September 21, 2012.
Trade Infrastructure
The then Home Minister of India, in the presence of, among others, the
Commerce Ministers of India and Pakistan, and the Chief Ministers of the states of
Punjab of the two countries inaugurated the Integrated Check Post (ICP) at Attari on
April 13, 2012. The Attari ICP represents vastly improved infrastructure to facilitate trade
and travel. Spread over 118 acres, it contains a passenger terminal measuring 9,600 sq
mts, a dedicated cargo terminal measuring 4,700 sq mts, and separate import and
export warehouses measuring over 10,000 sq mts, apart from over 50,000 sq mts of
parking space for trucks, and equally large area for future expansion. The two sides
have discussed initiatives such as 24x7 operation at Attari-Wagah trade route,
movement of containers between Amritsar and Lahore and meeting point for business
persons at Attari/ Wagah. Various segments in Pakistan have spoken in favour of
opening more land trade routes with India, including Munabao-Khokhrapar. A Joint
Working Group has been established to look into this.
Other Economic Initiatives
In response to a request made by Prime Minister Nawaz Sharif for assistance to
tackle power crisis in Pakistan, the possibility of supplying upto 5 million cubic meters
gas per day (by extending the Dadri-Bawana-Nangal pipeline from Jalandhar via
Amritsar to Lahore), and establishing a 500 MW HVDC link from Amritsar to Lahore to
facilitate power trading were explored. A composite Indian delegation comprising
officials and public sector representatives from electricity and gas utilities visited Lahore
and Islamabad on June 9-12, 2013 to hold discussions at technical level and made
presentations to the Chief Minister of Punjab and Member of Prime Minister's Energy
Committee Shehbaz Sharif, Minister for Water and Power Khawaja Asif and Minister for
Petroleum and Natural Resources Shahid Khaqan Abbasi. After a hiatus of a few
months since July/ August 2013, when visit of a delegation from Pakistan to India for
follow up was expected, further talks were held in Delhi on March 5, 2014 on trade in
power, and on April 1, 2014 on cooperation in gas and petroleum sector.
Pakistan welcomed India's decision to allow investment from Pakistan (notified
by the Government of India on August 1, 2012). The decision to allow investment from
Pakistan in shares and convertible debentures was notified by RBI on August 22, 2012.
In September 2012, RBI removed restriction on investment in Pakistan from India.
Business Exchanges
A strong tradition of exchange of trade delegations has also been built up over
the last two years. The first meeting of the newly created Joint Business Council (JBC)/
Forum, comprising 15 top level business representatives from each country was, held in
Islamabad on 29 June 2013. The JBC decided to form ten task forces to examine the
priority areas of economic cooperation in agriculture, pharmaceuticals, automobiles and
healthcare. Its second and third meetings were held in New Delhi and Lahore,
respectively in October 2013 and February 2014.
Among business-to-business exchanges since April 2012 are participation of a
CII-organised high level business delegation in the 2nd Indo-Pak Aman ki Asha
Economic Conference 'Dividends: Profits on Peace' in Lahore on 7-8 May 2012,
Bombay Chamber of Commerce and Industry in 'My Karachi' exhibition in Karachi from
13-15 July 2012, 'India Expo' in Karachi in 2013, the second edition of 'India Show' in
Lahore (February 14-16, 2014) - which was inaugurated by Federal Minister for
Commerce of Pakistan Khurram Dastgir Khan, 'Made in Pakistan' Exhibition mounted
by the Federation of Pakistan Chambers of Commerce and Industry in Mumbai from
August 31-September 4, 2012, and again from April 3-7, 2014, participation of Pakistan
in Indian International Trade Fair in November 2012 and 2013, and in a number of other
trade exhibitions and events, including those arranged by the PHD Chamber of
Commerce and Industry in Chandigarh, Ludhiana, Delhi, etc. The next edition of
'Lifestyle Pakistan' is being planned.
Humanitarian Issues
A joint 'Judicial Committee on Prisoners' comprising retired Judges from the
higher judiciary of both countries looks into humanitarian issues related to prisoners
and fishermen in each other's jails, which it visits alternatingly twice a year. Its last visit
to India was in October 2013. The Committee's recommendations on better consular
access, expeditious trial, provision of legal aid, humanitarian treatment, early
repatriation after completion of sentences, and repatriation of fishermen along with their
boats, are examined for implementation by the government on both sides. As a result
of constant efforts by the Government, release of close to 2,000 Indian fishermen and
100 prisoners has been secured from Pakistani prisons since 2008. At present, there
are over 300 fishermen and estimated over 200 prisoners believed to be Indian in
Pakistani jails. Some of them have completed their sentences and await release. Since
2008, deaths of eight Indian fishermen and 3 prisoners while in custody of Pakistani
authorities have been reported, with a few of these known or believed to have resulted
from unnatural causes. The matter of reported auctions of confiscated boats of
apprehended Indian fishermen has been taken up with concerned Pakistani authorities.

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