It dillied and dallied and had its share of jumps and starts, but fortunately the cabinet go-ahead to India specific phase out of negative trade list was followed by a reassuring rally from all concerned quarters. The near 500 businessmen and executives due to cross over to New Delhi next month will iron out any unwarranted rigidity in way of smooth and swift price rationalisation, which means a degree of appreciated seriousness marks the first time ever the two neighbours have come this close in trade terms.
Finally pundits (on both sides) that favoured economic give-and-take before engagement on contentious issues stand vindicated. But in and of itself the trade liberalisation – though fruitful and progressive – achieves little in terms of realising the subcontinent’s greater productive potential, or even scratching its surface. Both governments need to follow the present wave of confidence building measures with concrete steps that the exercise of ’06-’08 did not precede, and hence fizzled out.
The financial must now gel with the political, and prudence dictates that the two governments now look to initiate mutually beneficial mega projects that will bind the interests of both for the long term. Once these take off, and their benefits reach common people, not only with both capitals find it politic to proceed with less pleasant issues, they will also be eager to compromise more, seeing how unnecessary brinksmanship will quickly undo other benefits.
Interestingly, the commerce ministry’s initiative to connect more deeply with India began just when Pak-India relations were deteriorating again, each faulting the other’s inflexible position on the terror threat even as it made greater inroads than ever before on both sides. In light of this, the success is all the more appreciated. And while the usual time lag plays out, both Islamabad and New Delhi should take heart that a significant chapter has been turned in our complex and complicated history. So trade it is, at last.
