Pakistan 'defers' plans to resume Indian imports until disputed Kashmir’s autonomy restored

Pakistan laborers unload sacks of onion imported from neighboring India at Pakistani border Wagah near Lahore Pakistan on May 14, 2013. (AP/File)
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Updated 01 April 2021
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Pakistan 'defers' plans to resume Indian imports until disputed Kashmir’s autonomy restored

  • Foreign minister says ‘impossible’ to normalize relations with India until New Delhi revises August 5, 2019 decision to strip Kashmir’s special status
  • Pakistan’s Economic Coordination Committee had on Wednesday given the go-ahead for imports from India

ISLAMABAD: Pakistan has decided to defer plans to allow limited imports of sugar, cotton and wheat from India, a top minister said on Thursday, following what is being seen as a political backlash against the move in the South Asian nation.

Pakistan’s Economic Coordination Committee had on Wednesday given the go-ahead for imports from India, with Finance Minister Hammad Azhar telling reporters the government had made the decision in the public interest when questioned why trade was resuming despite no change in New Delhi’s position on Kashmir — a disputed territory ruled in part but claimed in full by both nations.

Interior Minister Sheikh Rashid Ahmed told reporters the decision to allow Indian imports had been “deferred” until New Delhi restored Indian-administered Kashmir’s special status.

In a video message after a cabinet meeting to review the decision on Indian imports, Foreign minister Shah Mahmood Qureshi said: 

“It was everyone’s unanimous decision, including the prime minister’s, that until India does not revise the August 5, 2019 unilateral decision [to revoke the special autonomy of Kashmir], normalizing relations with India will not be possible.”

Pakistan’s major opposition parties have already expressed concern over the government’s announcement on Wednesday.

Former senator Sehar Kamran from the opposition Pakistan Peoples Party said trade with India and restorations of relations “cannot be done at the cost of Kashmir.”

“Any peace initiative can only progress if the people of Kashmir get their right to self-determination as per the United Nations resolutions,” she told Arab News. “At a time when people of Kashmir are facing oppression and suppression, what kind of relationship we are trying to build with India? Naturally, there are concerns and apprehensions.”

Raja Zafar ul Haq, a senior leader of the opposition Pakistan Muslim League-Nawaz party, echoed Kamran’s sentiments.

“The government didn’t bring this matter to parliament or discuss it with political parties and Kashmiri leadership,” he told Arab News. “This will not have a positive impact on the country.”

Earlier this week, Prime Minister Imran Khan responded to a letter by his Indian counterpart Narendra Modi on the occasion of Pakistan’s Republic Day on March 23, saying the government and people of his country wanted peaceful and cooperative relations with all neighbors, including India.

“Durable peace and security in South Asia is contingent upon resolving all outstanding issues between India and Pakistan, particularly the Jammu and Kashmir dispute,” Khan said in his letter.

Qureshi this week also acknowledged progress in relations between the two South Asian neighbors, saying there had been “positive developments” such as the announcement of a cease-fire on the disputed Kashmir border in February and the resumption of water talks last month. 

India and Pakistan have fought three wars since gaining independence from British colonial rule in 1947.


Pakistan consumer confidence rises by 4 percentage points in two years, survey shows

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Pakistan consumer confidence rises by 4 percentage points in two years, survey shows

  • Four in 10 Pakistanis believed the country is on the right track, with optimism higher among men
  • Economic concerns remained most worrying, but their quantum fell drastically across all issues

ISLAMABAD: Consumer confidence in Pakistan has risen by 4 percentage points from 31.5 to 35.5 over the last two years, which highlights improving public optimism under the government’s tenure, Ipsos market research firm said in a recent survey.

The survey was conducted through computer-assisted telephonic interviews (CATI) and included more than a thousand participants from all provinces and Azad Kashmir and Gilgit Baltistan regions on Feb. 2-14.

It comes at a time when Pakistan has undergone a difficult period of stabilization, though international rating agencies have acknowledged improvements after Islamabad began implementing structural reforms as part of its $7 billion International Monetary Fund (IMF) program.

The Ipsos survey revealed a “measurable” improvement in Pakistan’s economic sentiment, marked by a decline in inflation alongside notable reductions in poverty and unemployment, since the current government took charge two years ago.

“These findings point to a clear two-year transformation in the Consumer Confidence Index, demonstrating the perceived impact of consistent governance and policy measures,” read the key takeout in the survey.

“Sustained performance, coupled with transparent communication of achievements, will be essential to maintain momentum, reinforce optimism, and support further improvements in economic confidence.”

Four in 10 Pakistanis believed the country is on the right track, with optimism higher among men, while confidence in the country’s direction being right increased more than three times, from 12 percent to 40 percent, since the government came to power, according to the survey.

Economic concerns remained most worrying, but their quantum fell drastically across all issues since the first quarter of 2024. Inflation has dropped by 23 percent, unemployment by 10 percent, poverty by 20 percent, electricity prices by 34 percent and the burden of additional taxes was reduced by 18 percent in Q1 2026 as compared to Q1 2024.

“One in 3 Pakistanis expect the economy to strengthen,” the survey read. “Confidence to invest has grown steadily over two years, rising from 11 percent to 16 percent, with even stronger optimism among urban residents.”