The Pak Banker

Pause in the process

- Dr Maleeha Lodhi

THE slowing down of the IndoPakist­an normalisat­ion process has gone unnoticed at a time when public attention in Pakistan is focused on pressing internal issues and the upcoming elections. A cooling in bilateral 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 recent incidents across the Line of Control in Kashmir, onset of the election season in Pakistan and the consequent wait-and-see stance adopted by the Indian government, 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 it set in when certain steps were taken by India after January's border clashes to make good on Prime Minister Manmohan Singh's declaratio­n that it could no longer be business as usual with Islamabad.

Delhi cancelled a meeting between the water secretarie­s of the two countries scheduled for the last week of January. It also suspended the visa liberalisa­tion agreement signed last September with no new date set for its implementa­tion. Cultural events involving Pakistani artists in Delhi were called off while India's sports authoritie­s sent back Pakistani hockey players. 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 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 20-21 September 2012 to open the third round of talks. The fact that five months after this, dates have not been agreed 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 lack of adequate preparatio­n by the government on MFN meant no internal consensus was built and this became the key reason for delay. 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 on pressing ahead because India's more restrictiv­e import regime failed to provide them a level trade regime. In a subsequent meeting at the foreign ministry, representa­tives from the concerned ministries reiterated that these three stakeholde­rs had not been consulted.

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