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Wednesday, July 23, 2025
Wednesday July 23, 2025
Wednesday July 23, 2025

Pakistan rules out resuming trade with India amid Kashmir dispute

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The Pakistani foreign office confirms there are no plans to restore trade relations with India, citing ongoing issues in Kashmir and lack of bilateral discussions

On August 17, 2024, Pakistan’s Foreign Office reiterated that there are no current plans to resume trade with India, emphasizing that the situation in Kashmir remains unchanged since the suspension of trade relations in 2019. The Foreign Office spokesperson, Mumtaz Zahra Baloch, addressed the media, stating that the status quo in Kashmir and the absence of bilateral talks between the two countries have precluded any immediate restoration of trade ties.

The suspension of trade followed India’s decision in August 2019 to revoke the special status of the Jammu and Kashmir region, a move that sparked significant diplomatic tension. Despite recent overtures from Pakistan’s leaders, including statements from Prime Minister Shehbaz Sharif’s administration and Foreign Minister Ishaq Dar expressing a willingness to reconsider trade relations, the Foreign Office affirmed that no new developments had occurred to alter the current state of affairs.

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The Pakistan Muslim League-Nawaz (PML-N), which leads the current government, has traditionally supported economic normalization with India, citing potential benefits for both nations. However, the ongoing political and humanitarian issues in Kashmir continue to be a major barrier. The recent killing of four Kashmiri youths by Indian forces in the Doda district has intensified criticisms of Indian policies in the region. The Pakistani spokesperson condemned these actions, calling them “unlawful and repressive” and urging the international community to address human rights violations in Indian Illegally Occupied Jammu and Kashmir (IIOJK).

In addition to the Kashmir situation, the Foreign Office addressed the current state of ceasefire talks concerning Gaza. The spokesperson welcomed the diplomatic efforts taking place in Doha but noted that negotiations had been suspended without reaching a resolution. Pakistan has been vocal about the need for an urgent and unconditional ceasefire in Gaza, particularly given the heavy toll on Palestinian communities and recent high-profile incidents, such as the assassination of Hamas leader Ismail Haniyeh, which have heightened regional tensions.

Despite these developments, the spokesperson clarified that Pakistan was not involved in mediation efforts for the Middle East and refrained from commenting on the specifics of the Doha talks. The statement highlighted Pakistan’s position as an advocate for a ceasefire but not an active participant in the ongoing negotiations.

Analysis:

Political: Pakistan’s decision to maintain the suspension of trade with India underscores the persistent geopolitical friction between the two nations. The lack of progress in Kashmir since 2019 reflects the deep-seated challenges in Indo-Pak relations. By reaffirming the trade suspension, Pakistan’s government signals its stance on the Kashmir issue and its reluctance to compromise on this critical matter. The emphasis on ongoing human rights abuses in Kashmir also highlights Pakistan’s strategy to leverage international pressure against India, aiming to influence global opinion and garner support for its position.

Social: The suspension of trade with India has broad social implications, affecting not only economic conditions but also the daily lives of people in both countries. For Pakistan, the trade suspension reflects national sentiment regarding Kashmir and showcases the government’s commitment to addressing human rights concerns. On a social level, the trade halt affects businesses and consumers who face disruptions in supply chains and higher costs due to the absence of trade. The broader social context includes growing frustration over the unresolved Kashmir dispute and its impact on regional stability and prosperity.

Racial: The Kashmir conflict has significant racial and ethnic dimensions, given the region’s diverse demographic makeup. The continued suspension of trade and the focus on alleged human rights violations highlight the racial tensions exacerbated by the ongoing conflict. Pakistan’s condemnation of Indian policies in Kashmir resonates with broader concerns about ethnic and racial discrimination faced by Kashmiri people under Indian administration. The international discourse around the conflict often intersects with discussions on racial justice and the rights of ethnic minorities.

Gender: While the trade suspension and Kashmir conflict primarily involve political and humanitarian issues, gender dynamics can be indirectly affected. Women and children in conflict zones like Kashmir often bear the brunt of violence and instability. The Pakistani government’s stance on Kashmir may reflect broader concerns about the impact of conflict on vulnerable populations, including women who face heightened risks in conflict situations. However, the primary focus remains on political and humanitarian aspects rather than direct gender-related policy implications.

Economic: Economically, the suspension of trade with India represents a significant setback for businesses and consumers in both countries. The absence of trade affects various sectors, leading to potential shortages and higher prices. The PML-N’s previous support for trade normalization was rooted in the economic benefits it could bring. The ongoing trade halt continues to hinder potential economic growth and bilateral cooperation. Additionally, the economic impact of the Gaza ceasefire talks, although not directly related to the Indo-Pak trade issue, reflects broader regional economic instability influenced by ongoing conflicts.

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