This article covers India's stated approach to relations with Pakistan, the attempts at engagement and the exchanges between leaders from 2014 to 2019, Pakistan's unilateral measures of August 2019, trade and the Permanent Indus Commission. It is based on the Ministry of External Affairs (MEA) bilateral brief of 07 February 2020, and describes the position at that date. The brief sets out the Government of India's position, and this article reports it as such.

India's stated approach

According to the MEA brief of February 2020, India, in keeping with its "Neighbourhood First Policy", desires normal neighbourly relations with Pakistan. India's consistent position is that issues, if any, between the two countries should be resolved bilaterally and peacefully, in an atmosphere free of terror and violence. The brief states that the onus is on Pakistan to create such a conducive environment.

Attempts at engagement since 2014

The brief lists the following attempts by India to build normal neighbourly relations:

  • the invitation to the then Prime Minister, Nawaz Sharif, to the swearing-in ceremony in May 2014
  • the meeting between the Prime Ministers in Ufa in July 2015
  • the visit of the External Affairs Minister (EAM) to Islamabad in December 2015, when the EAM also proposed a Comprehensive Bilateral Dialogue

The brief states that these initiatives were met with acts of cross-border terrorism and violence against India.

Exchanges in 2018

On 30 July 2018, the Prime Minister spoke to Mr. Imran Khan and congratulated him on his party emerging as the largest political party in the National Assembly. On 18 August 2018, the Prime Minister sent a congratulatory letter to Prime Minister Imran Khan desiring meaningful and constructive engagement for the benefit of the people of the entire region. The EAM congratulated Pakistan's new Foreign Minister on 22 August 2018.

Pakistan replied on 14 September 2018 and suggested a meeting between the Foreign Ministers at the UN General Assembly in New York. Pakistan's Foreign Minister wrote to the EAM with a similar proposal on 17 September 2018. According to the brief, the letters spoke of bringing a positive change, a mutual desire for peace and Pakistan's readiness to discuss terrorism. India accepted the proposal for a meeting on 20 September 2018.

Within hours of India's acceptance, Pakistan-based terrorist entities killed three police personnel in Jammu and Kashmir. The brief states that it was then assessed that any conversation with Pakistan would be meaningless, and India called off the meeting between the Foreign Ministers in New York.

Exchanges in 2019

On 26 May 2019, Prime Minister Modi received a telephone call from the Pakistan Prime Minister congratulating him on his election victory. Prime Minister Modi thanked him and recalled his earlier suggestion that the two countries fight poverty jointly. He stressed that creating trust and an environment free of violence and terrorism were essential for cooperation for peace, progress and prosperity in the region.

Pakistan's unilateral measures of August 2019

On 7 August 2019, Pakistan announced unilateral measures, including the downgrading of diplomatic relations, the suspension of bilateral trade and a review of bilateral arrangements with India. India rejected what the brief calls Pakistan's attempt to present an alarming picture of bilateral ties to the world, and urged Pakistan to review its unilateral actions so that normal channels of diplomatic communication are preserved.

The brief states that Pakistan is yet to respond like a normal neighbour and that it continues to restrict normal trade, people-to-people exchanges and connectivity with India.

Trade

The brief gives the following figures for bilateral trade:

  • 2013-14: exports US$2.2bn, imports US$0.426 bn, trade balance US$1.8bn
  • 2014-15: exports US$1.85bn, imports US$0.497bn, trade balance US$1.3bn
  • 2015-16: exports US$2.1bn, imports US$.441bn, trade balance US$1.7bn
  • 2016-17: exports US$1.83bn, imports US$.456bn, trade balance US$1.3bn
  • 2017-18: exports US$ 1.92bn, imports US$0.488bn, trade balance US$1.435 (the brief gives no unit for this figure)
  • 2018-19: exports US$ 2.06 bn, imports US$ 0.495 bn, trade balance USD 1.57 bn

India accorded Most Favoured Nation (MFN) status to Pakistan in 1996. A Pakistan cabinet decision of November 02, 2011 to reciprocate remains unimplemented. In August 2012, India announced a reduction of 30% in its SAFTA Sensitive List for non-Least Developed Countries of SAFTA, including Pakistan, bringing down the tariff on 264 items to 5% within three years. The brief states that Pakistan nevertheless continued to follow a restrictive trade policy towards India.

After the Pulwama attack, India withdrew MFN status from Pakistan on 15 February 2019 and raised the customs duty on exports from Pakistan to 200% on 16 February 2019. Pakistan suspended bilateral trade with India on 7 August 2019 as part of its unilateral measures.

Permanent Indus Commission

The 115th meeting of the Permanent Indus Commission (PIC) was held in Lahore on August 29-30, 2018. The Indian delegation was led by the Indian Commissioner for Indus Water (ICIW) and the Pakistan delegation by the Pakistan Commissioner of Indus Water (PCIW). The two sides discussed the Pakal Dul Hydroelectric Power Project (HEP), the Lower Kalnai HEP and reciprocal tours of inspection to both sides of the Indus basin.

A delegation led by the PCIW subsequently inspected Pakal Dul, Lower Kalnai, Ratle and other hydropower projects in the Chenab Basin on January 28-31, 2019.