Imran Khan  

Prime Minister Imran Khan decided that Pakistan cannot go ahead with any trade with India under the current circumstances after holding consultations with key members of his Cabinet on importing cotton and sugar, a media report said on Saturday.

The Prime Minister on Friday instructed the Ministry of Commerce and his economic team to immediately take steps to facilitate the relevant sectors, value added, apparel and sugar, by finding alternative cheap sources, the Dawn newspaper quoted sources as saying.

Various proposals have been presented to the Economic Coordination Committee (ECC), which considers these suggestions from an economic and commercial point of view. After consideration by the ECC, its decisions are presented to the Cabinet for ratification and final approval, the report said.

In the present case, a proposal was presented to the ECC to allow the import of cotton, cotton yarn and sugar from India keeping in view domestic requirements, it said.

The ECC had decided on commercial grounds to recommend the imports for the Cabinet consideration.

While the decision was not on the formal agenda of the Cabinet meeting, the issue was brought up by members and the Prime Minister instructed that the ECC’s decision be deferred and immediately reviewed, the report said.

The Cabinet on Thursday rejected the proposal of the high-powered committee to import cotton from India, with Foreign Minister Shah Mahmood Qureshi saying there can be no normalisation of ties until New Delhi reverses its decision to revoke the special status of Jammu and Kashmir in 2019.

Pakistan’s U-turn on Thursday came a day after the ECC, under newly appointed Finance Minister Hammad Azhar, recommended importing cotton and sugar from India, lifting a nearly two-year-long ban on its import amid tensions over the Kashmir issue.

India has said it desires normal neighbourly relations with Pakistan in an environment free of terror, hostility and violence. India has said the onus is on Pakistan to create an environment free of terror and hostility.

‘Talks and terror’

India has also told Pakistan that “talks and terror” cannot go together and has asked Islamabad to take demonstrable steps against terror groups responsible for launching various attacks on India.

The ECC’s decision had raised hopes of a partial revival of Pakistan-India trade relations, which were suspended after the August 5, 2019 decision of New Delhi to revoke the special status of J&K.

In May 2020, Pakistan lifted the ban on the import of medicines and raw material of essential drugs from India amid the pandemic. The revocation of the special status angered Pakistan, which downgraded diplomatic ties and expelled the High Commissioner in Islamabad. It also snapped all air and land links and suspended trade.