OPINION: Trade relations with Pakistan symbolic

Pakistani diplomats have prided themselves at attempting to corner their Indian counterparts at various global forums and multilateral outings.

The Pakistani army and its spy wing ISI, know that a conventional war cannot be won against India, but as noted writer C Christian Fair observes, from that country's distorted view of history "it is victorious as long as it can resist India's purported drive for regional hegemony as well as the status quo.''

Now for the first time since 1971, Pakistan finds itself outflanked and flustered, which has given the country's strategic culture, is a burden too hard to stomach. Hence, Pakistan's knee-jerk reactions to downgrade bilateral trade and diplomatic ties with India, is a battle of David versus Goliath. It makes no dent to the Indian economy, but may hurt Pakistan big time.

On the trade ladder, Pakistan is India's 48th largest partner. In 2018-19, Indo-Pakistan trade was barely 0.1% of India's total trade.

India's exports to Pakistan stood at $2.06 billion in 2018-19, while its imports were valued at just $0.49 billion.

India's imports like mineral fuel, fruit, salt, sulphur, limestone, ores, slag, rawhide and leather are among small items from Pakistan.
India's trade with biggies like the US and China invites no comparison, only a contrast. New Delhi's trade with Washington stood at $87.96 billion in 2018-19, while with neighbour Beijing, it stood a tad lower at $87.07 billion.

US and China apart, UAE, Saudi Arabia, Hong Kong, Singapore, Iraq, Germany, South Korea and Indonesia account for 49.62% of India's trade (45.47% exports and 52.29% imports).

So at best, trade ties have been symbolic between the two sides. India cancelled its Most Favoured Nation status to Pakistan after the Pulwama terror attack this year.

Despite the political tensions, businessmen on both sides have, if given a chance, wanted to move on, but Pakistan's insistence on settling the Kashmir issue has come in the way. Now that there is no Kashmir issue to settle, even that symbolism is not worth it.

Yet, for the record, attempts were made. The rate of export growth between the two sides has been positive in the past four years.

Imports were up by 3.05 per cent ($0.45 billion) in FY17; 7.5% ($0.49 billion) in FY 18; and 1.29% ($0.495 billion) in FY 19.

Pakistan's foreign reserves stand at just $7.76 billion, even lower than Bangladesh's forex reserves worth $32 billion.