Trading for Peace: How Economic Ties Can Pave the Way for Pakistan-India Coexistence

Abstract

India and Pakistan are the two important bordering states of the South Asian region. Owing to several factors, they have been, unfortunately, locked in a bitter rivalry since their independence in 1947. Apart from fighting three wars, the two South Asian nuclear giants share a history marked by mistrust, mutual fear, antagonism, and competition. The uneasy bilateral relationship has prevented them from establishing mutually beneficial economic and trade connections. As against China and the U.S.; they have maintained close economic ties despite being bitter rivals in many areas, Pakistan and India have failed to give trade a chance to positively contribute to improving the relationship. Bilateral trade and economic connectivity have the potential to lead the two states to peaceful coexistence and a win-win situation, as economic liberalism claims. While mitigating the negative impacts of lingering disputes such as Kashmir, and trying to resolve the conflicts through dialogue, they need to resume bilateral trade with no/minimal restrictions and confer on each other the “most favored nation” status. It will enhance prosperity in the region, improve the living standards of the citizens of the two states, connect their nations through trade, and visits to holy places, and reduce extremism and terrorism in the region. It may reduce the incentive for conflict and lead to peaceful coexistence.