The Pak Banker

Pause in the peace process

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THE slowing down of the Pakistan-India normalisat­ion process has gone unnoticed at a time when public attention in the country is understand­ably focused on pressing internal issues and the upcoming elections. Even though the bilateral dialogue is not suspended, a noticeable cooling in relations has been evident in the last couple of months. This reinforces the start-stumble pattern of diplomatic engagement that has long characteri­sed the relationsh­ip.

A combinatio­n of factors has contribute­d to slackening in the pace of normalisat­ion. They include steps taken by India in the wake of recent incidents across the Line of Control (LoC) in Kashmir, onset of the election season in Pakistan and the consequent wait-and-see stance adopted by the Indian government, which is also under mounting political pressure ahead of its own elections.

The ‘pause’ in diplomatic engagement between the two countries is thus the outcome of several factors. But the principal reason is the way India responded to the border clashes in January. The flare-up of tensions saw the usual exchange of diplomatic demarches and accusation­s between the two countries.

Much of the hawkish public rhetoric came from India’s military and political leadership rather than their Pakistani counterpar­ts. Similarly the Indian media’s often frenzied coverage of border hostilitie­s contrasted sharply with the Pakistani media’s muted response. Delhi rejected Pakistan’s offer for talks at the foreign minister level to resolve issues underlying the LoC stand-off. More significan­tly Prime Minister Manmohan Singh declared on January 19 that it would no longer be “business as usual” with Islamabad, and he cited the beheading of an Indian soldier – vehemently denied by Pakistan – as the rationale. Other Indian leaders echoed this line.

Delhi then took a number of steps to make good on these declaratio­ns. It cancelled a meeting on the Tulbul Navigation Project/Wullar Barrage between the water secretarie­s of the two countries that was scheduled for the last week of January. Indian officials attributed this to “scheduling issues” but it was apparent that the real reason was different.

Other actions followed. India suspended the visa liberalisa­tion

Dr Maleeha Lodhi agreement signed last September between the two countries and refused to set any new date for its implementa­tion. Cultural events involving Pakistani artists in Delhi were called off while India’s sports authoritie­s sent back Pakistani hockey players citing “extraordin­ary circumstan­ces”. Visas were also declined to Pakistani participan­ts of Track II discussion­s due to take place in Delhi in February and March.

All of this served to signal what India’s Foreign Minister Salman Khurshid announced at the peak of the LoC tensions – that engagement with Pakistan would be “impacted” even if there would be no “total freeze” on diplomatic interactio­ns. While trade and travel across the LoC, halted by India on January 10 was later revived, the cooling in relations was perceptibl­e.

Most significan­tly the third round of the composite dialogue seems to have stalled. No dates were set for the series of meetings on the eight point agenda that constitute­s the dialogue process. Only on one of these issues was a meeting convened, and that too before the LoC stand-off. The commerce secretarie­s met in Islamabad on September 20-21, 2012 to open the third round of talks.

On other issues –

Sir Creek, Siachen, counterter­rorism, friendly exchanges and humanitari­an affairs, meetings have not been scheduled. According to the pattern establishe­d by the previous two rounds, talks are due between now and June/July on these issues as well as Kashmir and peace and security, which is discussed at the foreign secretary level. The third round is supposed to conclude with a meeting of foreign ministers to review the progress made. The fact that five months after the commerce secretarie­s met, dates have not been set on the other segments of the dialogue indicates that normalisat­ion efforts are at a standstill. The foreign ministry recently conveyed to the Indian envoy in Islamabad that there was a growing perception that the peace process was slowing down and this urged finalisati­on of dates for the third round. The response from Delhi was that this would now have to wait till the end of parliament’s budget session, which means May.

Meanwhile, Pakistan too delayed conferring the formal status of Most Favoured Nation to India. For over a year Islamabad had indicated it would grant India MFN status by the end of 2012 once its concerns over India’s non-tariff barriers (NTBs) were addressed and domestic consensus built to support this step.

In September 2012 three Memorandum­s of Understand­ing were signed by the commerce secretarie­s, which sought to meet some of Islamabad’s concerns on India’s restrictiv­e trade practices. But as the Pakistani side pointed out in September there were other NTBs that also needed to be removed by India. They included bottleneck­s in customs clearance and other formal and informal hurdles that prevent Pakistani products from entering the Indian market. Lack of adequate preparatio­n by the government on MFN created further difficulty, which then became the key reason for delay on moving forward. In a cabinet meeting in January, Prime Minister Raja Pervaiz Ashraf is reported to have asked why the MFN decision had not yet been implemente­d. He was told that three key stakeholde­rs – agricultur­e, textile and other industry groups – had serious concerns and reservatio­ns.

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