Pakistan - India Trade Relations
PAKISTAN-INDIA TRADE RELATIONS [dateline 2013] India and Pakistan were major trading partners after independence. In 1948-49, 56% of Pakistan’s total exports were destined to India and 32% of Pakistan’s imports were from India. Till 1965 the normal trading relations continued. Between 1966 and 1974, no formal trade took place. Based on Simla Agreement of 1972 which contained provisions for resumption of trade and economic relations, trade resumed but was restricted to public sectors of both countries for few goods like cotton, engineering goods, jute, railway equipment, rice & tea. Later, trade by private sector was allowed and number of goods gradually increased (positive list of importable items from India was maintained by Pakistan). In 1995, both India and Pakistan became member of the WTO. In 1996 India accorded MFN status to Pakistan. However, Pakistan continued with the Positive List approach. In March 2012, Pakistan shifted from Positive (196