ISSI seminar debates trade relations with India

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The Institute of Strategic Studies, Islamabad (ISSI) organised a public talk under its Islamabad Debate Series 2012, titled ‘Pakistan’s Political and Economic Imperatives Require it to Pursue a Path Towards Normalisation of Relations with India, Even if an Acceptable Kashmir Settlement Remains Elusive for the Foreseeable Future’. Highlighting the importance of Kashmir as a fundamental factor in India-Pakistan relations, the roundtable debate speakers’ arguments inclined more towards focusing on the genuine problems that Pakistan is overwhelmed with, most crucially the lack of economic development in the country. The speakers at the debate were Former Foreign Secretary (Rtd) Najmuddin Sheikh who spoke in favour of the proposition, and former ambassador Asif Ezdi who spoke against the motion.
The Institute of Strategic Studies Director General while welcoming the distinguished speakers highlighted the importance of the proposition. The debate opened up with Ambassador Sheikh’s comments. He talked of the need to ensure individual security and the economic well being of the people and the need to curb internal insurgencies and violence. He said it was vital to move the country out of poverty, by fostering non-tariff trade with India and regional cooperation to promote overland trade.
This would generate huge sums of money in the shape of revenues for Pakistan, create millions of jobs and increase Pakistan’s share in international trade.
Another essential issue on which Pakistan and India had to negotiate was the nuclear issue, owing to its sensitive nature and capacity to inflict enormous damage. Terrorism is an issue that afflicts both India and Pakistan, and hence requires a collaborative effort to arrive at a lasting solution to attain stability in the region. Returning to the Kashmir issue, Ambassador Sheikh said an acceptable settlement of the Kashmir issue was elusive which was evident from the international community’s unchanged attitude towards Kashmir over the decades.
Asif Ezdi said the policy of linking the normalisation of relations with a satisfactory settlement of Kashmir enjoyed national consensus for more than fifty years, before being broken by Musharaf. This was not the result of a national debate or of any “political and economic imperatives” but of what Musharaf saw as the “imperatives” of his own domestic political ambitions.
He stated that since Musharaf’s ouster from power, his policies on Kashmir have been continued by the current government. The decision to grant MFN status to India is the latest act in a gradual retreat from Pakistan’s policy of treating Kashmir as the core issue.
It is also significant that the decision to normalise trade relations with India has been accompanied by reports of moves to resume the back-channel dialogue on Kashmir started by Musharaf to pursue his “four point plan” for a Kashmir settlement.
He added that most countries in the world shy away from talking publicly on Kashmir but privately recognise that its resolution is of central importance for the long-term peace and stability of the region. He strongly disagreed with the argument that the people of Kashmir themselves are tired of waging a freedom struggle as the alienation of the Kashmiri people with Indian rule remains deep and the urge for freedom has not been diminished.
He also disagreed with the arguments that the burden of the defence expenditure on Pakistan is unbearable and that Pakistan would benefit from economic engagement with India as according to him Pakistan’s defence expenditure has to be assessed not in isolation but in the light of the security threats the country faces. The benefits of sidelining Kashmir, Ezdi argued, are extremely dubious. India gave Pakistan MFN status in 1996. Despite this, Pakistan’s exports to India have remained stuck at a level of about $200 million to $350 million during last five years. On the other hand, India’s exports have risen during this period from $1.4 billion to $2.3 billion.
He said after having gained MFN status in Pakistan, India’s next objective will be the opening of the overland route through Pakistan to Afghanistan, Central Asia and beyond. Ezdi warned that normalisation of relations with India before the issue of Kashmir is settled would send a message to the Kashmiri people that they can no longer count on Pakistan’s support in their freedom struggle. If Pakistan could not do much for the Kashmiri people in last sixty years, the least it could do is not extinguish the torch of freedom but keep it burning and pass it on to the next generation.