“For the only way in which a durable peace can be created is by world-wide restoration of economic activity and international trade.”

–James Forestal – 1892-1949

Pakistan and India share a chequered history of trade. Both countries account for 90 percent of the gross domestic product (GDP) and 85 percent of the population of the region. They have been engaged in trading since independence but the total volume of trade between the two countries has remained quite low compared to other countries. However, 2008 was an even more unfortunate year for both nations due to the Mumbai attacks which put a strain to their economic relations. The share of total trade in goods between Pakistan and India fell below 0.5 percent of their combined trade with the rest of the world. Ajmal Kassab – the alleged for Mumbai attacks has not been proven as a spy sent by Pakistan, or with any links relating to the Government of Pakistan. However, the emphasis of Indian foreign office has been upon the fact that Pakistan has sponsored terrorism in India. He was hanged in 2012, and even with that settled, India has never been on talking terms with Pakistan. One after the other, Indian governments keep accusing Pakistan for militancy and insurgency in the Indian territory. There was a point, where there was a stand-off between the two nations and India was carrying out military drills. The trade was totally halted and Pakistan was expecting an attack from the Indian side, which then, was avoided through American intervention. For both the neighbouring countries, that war between themselves or a military response alone against the militants who are engaged in indiscriminate violence as a political practice is not the most effective way to deal with the phenomenon that has been described as terrorism. The Indian and Pakistani political establishments should deal with the post-Mumbai crisis with greater prudence than they seem to demonstrate at present. They should realise its repercussion on the economy and the country as a whole.