90.9 WBUR - Boston's NPR news station
Top Stories:
PLEDGE NOW
Here and Now with Robin Young
Public radio's live
midday news program
With sponsorship from
Mathworks - Accelerating the pace of engineering and science
Accelerating the pace
of engineering and science
Wednesday, November 2, 2011

Neighbors, Yet Bitter Enemies Inch Closer To Better Relations

Trade could soon move more freely across the Wagah Border separating Pakistan and India, after Pakistan moved today to normalize trade relations with its longtime enemy. (AP)

Trade could soon move more freely across the Wagah Border between Pakistan and India, after Pakistan moved today to normalize trade relations with longtime enemy. (AP)

By:  The Associated Press

ISLAMABAD – Pakistan’s government announced Wednesday it would normalize trade with its giant rival and neighbor India, a sign of better ties between two nuclear-armed nations whose tense relations have long poisoned South Asia.

The decision to grant India “Most Favored Nation” status would enable Pakistanis to export more goods to booming India at a time when Pakistan’s own economy is in the doldrums. Some Pakistani business quarters welcomed the decision, but others expressed concerns about cheaper Indian goods flooding the market.

The World Bank estimates that annual trade between India and Pakistan is around $1 billion and could grow to as much as $9 billion if barriers are lifted. Much of the current trade is illicit – products go through Dubai, where they are repackaged and are smuggled into both countries, meaning higher prices and less tax revenue.

Pakistani Information Minister Firdous Ashiq Awan did not say when the new rules would take affect, but said that the country’s powerful military – which dictates policy on India – agreed with the decision.

India granted MFN status to Pakistan in the 90′s, but Pakistan did not reciprocate until now.

Pakistan and India have fought three wars since they were carved off from each other in 1947, with the disputed status of Kashmir the main flashpoint. Both countries claim all of Kashmir.

Guest:

  • Matthew Green, Pakistan and Afghanistan Correspondent, Financial Times

Please follow our community rules when engaging in comment discussion on this site.
Robin and Jeremy

Robin Young and Jeremy Hobson host Here & Now, a live two-hour production of NPR and WBUR Boston.

September 12 8 Comments

Senator: Arab Countries ‘Need To Step To The Plate’ In Fight Against ISIS

Mark Begich (D-AK) is one of the few members of Congress speaking out against a key part of President Obama's plan for fighting the Islamic State.

September 12 Comment

Ecuadorian Drilling Damage Inspires Documentary

An American and an Ecuadorian are inspired to help Ecuador heal from decades of drilling and oil spills.

September 11 9 Comments

Doctor: 9/11 Responders’ Illnesses Becoming Worse

A World Trade Center Health Program medical provider says chronic illnesses affecting first responders are lingering and becoming worse.

September 11 Comment

Dennis Lehane Takes ‘The Drop’ From Screen To Page

Author Dennis Lehane discusses adapting a screenplay into a novel.