A relationship of trade and investment, and sports and culture, should be absolutely normal between nations that share a border. And yet, concerns begin to be raised on both sides when it comes to ties of this nature between India and Pakistan.
The liberal intelligentsia in both countries argue for a deepening of ties between ordinary citizens, believing this would in the end unlock doors that have remained shut for decades, and would lead to the resolution of questions like Kashmir and focused Pakistani terrorist strikes against India. Others are not so sanguine.
In a word, their reading is that softening of the metrics that involve ordinary folk would mean nothing until the nature of the Pakistani state, run essentially by the military with the co-option of right-wing religious elements who raise the Islamist flag, changes. Needless to say, the minuscule liberal intelligentsia of Pakistan has little influence in setting the agenda of politics or the government. Even so, many here argue that it is worth probing possibilities of normalising relations with Pakistan although it is far from being a normal country. Fair enough. But this approach would be deemed practical and helpful if concrete initiatives in this regard emanate from Islamabad as well, not just from Delhi. If that’s not the case, we may be falling in the trap of appeasing the military-security-mullah complex without receiving any satisfaction in return. A one-way deal simply doesn’t work.
On August 1, India loosened old rules and permitted foreign direct investment by Pakistani individuals and companies in all sectors except defence, space and atomic energy. Officially, Islamabad welcomed the move, saying it would create goodwill and give a boost to efforts to normalise bilateral relations. The Pakistani central bank has permitted two banks to open branches in India to facilitate capital flows. Given disturbed conditions in Pakistan, Pakistani businesses have moved substantial capital to Bangladesh. They are likely to be pleased about India’s decision, as should the Indian business community be.
However, it has to be noted that Islamabad continues to be evasive about proceeding against those who attacked Mumbai in November 2008. It is yet to give India the Most Favoured Nation status, although a promise has been made to do so by the end of this year. Islamabad also refuses to allow Indian goods to reach Afghanistan through Pakistan. In spite of these impediments, India recently announced resumption of suspended cricketing ties and quickly followed it up with the announcement on FDI from Pakistan. The basic underpinning of this approach is unclear. The government should have to explain if it expects our moves to act as a leverage to make the Pakistan government concede India’s key demands on terrorism and trade.