You are on page 1of 129



Shahzaib Gillani (083331) Usman Ahmed (091335)

Ahmed Samiullah (091324)




Mohsin Ihsan (******) Hassan Ahmed (083330)

Pakistan independence 14th Aug, 1947. It has the second largest Muslim population after Indonesia. Population is 170 million est. Area of 796095 sq. km. Capital city ISLAMABAD. Major languages urdu, punjabi, pushto, sindhi, balochi.

Independence: August 15, 1947. Area: 3.29 million sq. km. Population : 1.17 billion est. Cities: Capital--New Delhi Languages: Hindi, English, and 16 other official languages.

Partition of British India on the basis of religious demographics led to the creation of the sovereign states of Pakistan & India on 14 and 15 August 1947 respectively. The partition triggered one of the greatest migrations of modern history. India and Pakistans relation started spoiling from that day.

Distribution of assets:

Financial Assets Military Assets

In June 1947, the assets of British India world divided in the ratio of 17 to India and 5 to Pakistan. (17:5). Pakistan had been awarded Rs 750 Million under the final settlement but Pak initially received only Rs 200 Million. Rest of the money wasnt paid to Pak as a war had started in Kashmir. Indian promises werent fulfilled in military supplies as well and India didnt send Pakistan its agreed share.

Problems with princely states Demarcation of boundaries


Punjab(amritsar/lahore) Bengal(west ban/east ban) Sindh(sindhi hindus) Hyderabad(nizams will) Junagarh(hindu maj/muslim ruler) Kashmir

Kashmir was a princely state, ruled by a Hindu king, Maharaja Hari Singh. Muslim majority Maharajas will Distribution of land India 43% Pakistan 37% China 20%

Kashmir war Kashmir War, lasted until 1948 India moved the issue to the UN Security Council. UN Security Council passed Resolution on 21 April 1948 regarding ceasefire in the region.

Acc. To the resolution pak will have no say in Jammu and Kashmir and India will retain minimum military presence. Referendum

Pakistan agreed on referendum but did not draw its forces. Indians refused for referendum. UN gave 11 different proposals to resolve this issue. Not a single was accepted by India.

In 1989, a widespread popular and armed insurgency started in Kashmir. Disputes after 1987 elections. Beginning of the Mujahadeen insurgency

Militants groups( Indian view) Freedom fighters( Pak view)

Peaceful protest movement alongside the insurgency in Indian-administered Kashmir since 1989. Kashmiris have grievances with the Indian government, specifically the Indian Military, which has committed human rights violations, according to the United Nations.

Pakistani stance on Kashmir was effected by the events like 9/11. Osama bin Laden in 2002, stated that one of the reasons he was fighting America is because of its support of India on the Kashmir issue. In 2006 Al-Qaeda claim they have established a wing in Kashmir; this worried the Indian government. In September 2009, a U.S. Drone strike reportedly killed Ilyas Kashmiri(Al-Qaida).

Events such as 9/11 put pressure on Pakistan to alter its position on terrorism. UN resolution on Kashmir is no longer relevant. Presence of a neutral group(wants independence). Pakistan image Secular to extremist. Involvement of ISI to militant groups/freedom fighters.

Protests happened in previous years 08-09 as well, BUT 2010 Kashmir unrest were a series of protests in muslim majority kashmir valley In response to Quit Jammu and Kashmir movement(civil disobedience movement) Parties hurriat conference made this call to protest, citing human rights abuses by indian troops Indian para-military forces fired live ammunition on the protesters, resulting in 112 deaths

Expressed his intention to try to work with India and Pakistan to resolve this crises Issue needs to be sorted out bilaterally by India and Pakistan

The India-Pakistan War of 1947-48, sometimes known as the First Kashmir War. The war was initially fought by the forces of the princely state and tribal militias from the Khyber Pakhtunkhwa and Federally Administered Tribal Areas. Facing the assault and a Muslim revolution in the Poonch and Mirpur area, the ruler of princely state of Kashmir and Jammu signed an Instrument of Accession to the Indian union. Indian and Pakistani armies entered the war subsequently.

The state forces stationed in the border regions around Muzaffarabad and Domel were quickly defeated by tribal forces (some state forces mutinied and joined the them) and the way to the capital was open.

India airlifted troops and equipment to Srinagar, where they reinforced the princely state forces, established a defence perimeter and defeated the tribal forces on the outskirts of the city. In the Poonch valley, tribal forces continued to surround state forces.

Gilgit, the state paramilitary forces, called the Gilgit Scouts, joined the invading tribal forces, who thereby obtained control of this northern region of the state. The tribal forces were also joined by troops from Chitral, whose ruler, the Mehtar of Chitral, had acceded to Pakistan.

The Indians now started to get the upper hand in all sectors. Poonch was finally relieved after a siege of over a year. The Gilgit forces in the High Himalayas, who had previously made good progress, were finally defeated.

At this stage Indian Prime Minister Jawaharlal Nehru decided to ask UN to intervene. A UN cease-fire was arranged for the 31 December 1948. A few days before the cease-fire the Pakistanis launched a counter attack, which cut the road between Uri and Poonch. After protracted negotiations a cease-fire was agreed to by both countries, which came into effect. The terms of the cease-fire as laid out in a United Nations resolution of August 13, 1948. India and Pakistan signed the Karachi Agreement establishing a ceasefire line to be supervised by the military observers

Operation Gibraltar:

Operation Gibraltar was the codename given to the strategy of Pakistan to infiltrate Jammu and Kashmir, the northernmost state of India, and start a rebellion against Indian rule. The plan was that commandos would mingle with the local populace and incite them to rebellion. Meanwhile guerrilla warfare would commence, destroying bridges, tunnels and highways, harassing enemy communications, logistic installations and headquarters as well as attacking airfields, with a view to create the conditions of an "armed insurrection" in Kashmir.

Resulted in the 1965 Indo-Pakistani War. Despite the operational planning, the intruders were detected by Indian forces in Kashmir. India swiftly launched counter attacks across the cease fire line, attacking the Pakistan divisions in Azad Kashmir that had provided cover for the infiltrators.

The Indian offensive resulted in defeat of Pakistani troops in the covert guerilla operation. Frustrated with the failure of Operation Gibraltar. Ayub Khan urgently launched Operation Grand Slam to contain the situation since there was no contingency planned in case of Gibraltar's failure. This however resulted in more problems for Pakistan, as India countered by crossing the international border further south in Punjab, starting the war of 1965.

India crossed the International Border on the Western front on September 6, marking an official beginning of the war. Attempt to cross the Canal was made over the bridge in the village of Barki, just east of Lahore. These developments brought the Indian Army within the range of Lahore International Airport. As a result the United States requested a temporary ceasefire to allow it to evacuate its citizens in Lahore.

Aerial warfare: warfare:

1965 was a stalemate in terms of the air war with neither side able to achieve complete air superiority.

Tank battles: battles:

The 1965 war witnessed some of the largest tank battles since World War 2. Pakistan was outfought on the battlefield by India, which made progress into the Lahore-Sialkot sector, whilst halting Pakistan's counteroffensive on Amritsar.

The United States and the Soviet Union used significant diplomatic tools to prevent any further escalation in the conflict between the two South Asian nations. The Soviet Union, led by Premier Alexei Kosygin, hosted ceasefire negotiations in Tashkent. Where Indian Prime Minister Lal Bahadur Shastri and Pakistani President Ayub Khan signed the Tashkent Agreement, Agreement agreeing to withdraw to pre-August lines no later than February 25, 1966.

TIME magazine reported that India held 690 mi2 of Pakistan territory while Pakistan held 250 mi2 of Indian territory in Kashmir and Rajasthan. Additionally, Pakistan had lost almost half its armor temporarily. BBC reported that the war served game changer in Pakistani politics. Newsweek magazine, however, praised the Pakistani magazine military's ability to hold of the much larger Indian Army. By just the end of the week, in fact, it was clear that the Pakistanis were more than holding their own.

Operation Chengiz Khan:

That name was the code name assigned to the pre-emptive strikes carried out by the Pakistani Air Force on the forward airbases and radar installations of the Indian Air Force (IAF) on the evening of 3 December 1971, and marked the formal opening of hostilities of the Indo-Pakistani War of 1971.

March1971, EastPakistan (now Bangladesh) declared independence starting the Bangladesh Liberation War. Operation Searchlight Pakistan came underin creasing criticism from India, the Soviet Union, Japan, and Europe.

However, the United States and China showed little interest in the situation and actively opposed aid, intervention or support to the Mukti Bahini. By October 1971, the Mukti Bahini had started launching massive raids deep into East Pakistan with active support of the Indian Army troops. State of active undeclared war in the East by the end of November, when Indian and Mukti Bahini forces launched offensives on both the eastern and western borders of East Pakistan.

So Tikka Khan had proposed an offensive into India, and the PAF's overriding priority was to give maximum support to this offensive. Pakistan decided to launch an offensive counter air strike codenamed Operation Chengiz Khan on Indian airbases. A second objective for the PAF was to conduct air interdiction against the supply routes for the Indian troops opposing Khan's proposed offensive.

As Indian Prime Minister Indira addressed the nation on radio shortly after midnight informing about the Pakistani attack, the Indian Air Force struck back. Full scale war start Pakistan attacked at several places along India's western border with Pakistan, but the Indian army successfully held their positions. The Indian Army quickly responded to the Pakistan Army's movements in the west and made some initial gains.

The Surrender of Pakistani forces stationed in East Pakistan was signed at Ramna Race Course in Dhaka on 16 December 1971. India took approximately 90,000 prisoners of war, including Pakistani soldiers and their East Pakistani civilian supporters.

The Soviet Union sympathized with the Bangladeshis, and supported the Indian Army and Mukti Bahini during the war, recognizing that the independence of Bangladesh would weaken the position of its rivalsthe United States and China. The USSR gave assurances to India that if a confrontation with the United States or China developed, it would take counter-measures.

The United States supported Pakistan both politically and materially. Nixon feared that an Indian invasion of West Pakistan would mean total Soviet domination of the region, and that it would seriously undermine the global position of the United States. US ambassador to the United Nations George H.W. introduced a resolution in the UN Security Council calling for a cease-fire and the withdrawal of armed forces by India and Pakistan.

The war stripped Pakistan of more than half of its population and with nearly one-third of its army in captivity, clearly established India's military dominance of the subcontinent. General Yahya Khan surrendered power to Zulfiqar Ali Bhutto who was sworn-in on 20 December 1971 as President and as the (first civilian) Chief Martial Law Administrator. A new and smaller western-based Pakistan emerged on 16 December 1971. Bangladesh became an independent nation, the world's third most populous Muslim state.

The Shimla Agreement was signed between India and Pakistan at It followed from the war between the two nations in that had led to the independence of East Pakistan as Bangladesh. The agreement laid down the principles that should govern their future relations. It also conceived steps to be taken for further normalization of mutual relations. Most importantly, it bound the two countries "to settle their differences by peaceful means through bilateral negotiations. India relesed 90,000 War prisoners of Pakistan.

Siachen was the worlds highest battle field Siachen War is a military conflict between India and War, Pakistan over the disputed Siachen Glacier region in Kashmir. Kashmir. The conflict began in 1984 with India's successful Operation Meghdoot during which it wrested control of the Siachen Glacier from Pakistan and forced the Pakistanis to retreat west of the Saltoro Ridge. Ridge. India had established control over all of the 70 kilometres (43 mi) long Siachen Glacier and all of its tributary glaciers.

The conflict in Siachen stems from the incompletely demarcated territory on the map beyond the map coordinate known as NJ9842. NJ9842 The 1972 Shimla Agreement did not clearly mention who controlled the glacier. Pakistan claimed that Pak lost 900 sq mile. mile India claimed that they captured 1000 1000. Cease fire occured in 2003.

2000 personnels died Pakistan reclaimed positions in 1990, 95, 96, 99 (Lahore 1990, 95, 96, Summit). Indian helicopter was shot down in 1996. 1996. Actual Ground Position Line (AGPL) India Built helipad and telephone booth.

It was an armed conflict between India and Pakistan that took place between May and July 1999 in the Kargil district of Kashmir and elsewhere along the Line of Control (LOC). The conflict is also referred to as Operation Vijay (Victory in Hindi) which was the name of the Indian operation to clear the Kargil sector.

The cause of the war was the infiltration of Pakistani soldiers and Kashmiri militants into positions on the Indian side of the LOC, which serves as the de facto border between the two states. This was only the second direct ground war between any two countries after they had developed nuclear weapons. weapons.

Location War Truth regarding Kargil War

The town of Kargil is located 205 km (120 miles) from Srinagar, Srinagar facing the Northern Areas across the LOC. Like other areas in the Himalayas Kargil has a Himalayas, temperate climate. Summers are cool with frigid nights, while winters are long and chilly with temperatures often dropping to 48 C (54 F). 48 (54 F).

Pak Forces and Mujahideen takes position on a ridge in a battle with the Indian Army during the Kargil conflict. conflict. Indian sent their army troops of 200,000. Indian Navy blocked the port of Pakistan ( Karachi port). They stopped the supply of fuel.

There are three events in Kargil. Pakistan in filtered forces. India discovered in filtration and mobilized to respond. Battle started between both forces.

Pakistan sought American help in de-escalating the conflict. However, President Clinton refused to intervene until Pakistan had removed all forces from the Indian side of the Line of Control. Control. On July 4, 1999 where Sharif agreed to withdraw Pakistani troops, most of the fighting came to a gradual halt, but some Pakistani forces remained in positions on the Indian side of the LOC. LOC.

The Indian army launched its final attacks in the last week of July; as soon as the Drass subsector had been cleared of Pakistani forces. The fighting ceased on July 26 26. The day has since been marked as Kargil Vijay Diwas (Kargil Victory Day) in India. By the end of the war, India had resumed control of all territory south and east of the Line of Control.

Pakistan was criticized by other countries for instigating the war, as its paramilitary forces and insurgents crossed the Line of Control. Other organizations like the ASEAN Regional Forum too supported India's stand on the inviolability of the LOC. The European Union also opposed Pakistan's violation of the LOC. China, China a long-time ally of Pakistan, insisted on a pullout of forces to the pre-conflict positions along the LoC and settling border issues peacefully.

The conflict soon turned into a news propaganda war in war, which press briefings given by government officials of each nation produced conflicting claims and counterclaims. The Indian Government banned the telecast of PTV and blocked access to online editions of the Dawn newspaper newspaper. The Pakistani media criticized this apparent curbing of freedom of the press in India, while India media claimed it was in the interest of national security security. This helped India gain valuable diplomatic recognition for its position.

The Agra summit was a two-day summit held on July 15th and 16th, 2001 between Pakistani President Pervez Musharraf and Indian Prime Minister Atal Behari Vajpayee Vajpayee. It was organized with the aim to resolve longstanding issues between India and Pakistan Pakistan. However, the summit collapsed after two days and no formal agreement could be attained.

The two sides remained inflexible on the core issue of Kashmir, despite five long and arduous one-to-one rounds between the two leaders and hours of discussion between the two delegations. The major concern of the international community related to both countries arriving at some "Nuclear risk reduction" initiatives to pre-empt South Asia featuring as a nuclear flash point. Despite the failure of the talks, General Pervez Musharraf joined Vajpayee to call on the two countries to bury their past.

The partition of British India created a conflict over the plentiful waters of the Indus basin. During the first years of partition the waters of the Indus were apportioned by the Inter-Dominion Accord of May 4, 1948. This accord required India to release sufficient waters to the Pakistani regions of the basin in return for annual payments from the government of Pakistan. The accord was meant to meet immediate requirements and was followed by negotiations for a more permanent solution. From the Indian point of view, there was nothing that Pakistan could do to prevent India from any of the schemes to divert the flow of water in the rivers. Pakistans position was dismal and India could do whatever it wanted.

The Indus Waters Treaty is a water-sharing treaty brokered by the World Bank Bank. The treaty was signed in Karachi on September 19, 1960 by 19, Indian Prime Minister Jawaharlal Nehru and President of Pakistan Mohammad Ayub Khan Khan. The treaty was a result of Pakistani fear that since the source rivers of the Indus basin were in India, it could potentially create droughts and famines in Pakistan.

The Indus System of Rivers comprises three Western Rivers the Indus, the Jhelum and Chenab and three Eastern Rivers the Sutlej the Beas and the Ravi and with minor exceptions. Sutlej, Ravi; The treaty gives India exclusive use of all of the waters of the Eastern Rivers and their tributaries before the point where the rivers enter Pakistan Similarly, Pakistan has exclusive use of the Western Rivers. For this purpose, treaty creates the Permanent Indus Commission, with a commissioner appointed by each country.

One, One a role for the World Bank in the appointment of a Neutral Expert. The first step under the Treaty is to resolve any "question" through the Permanent Indus Commission itself. If the "question" is not resolved there, it becomes a "difference" and is referred to a Neutral Expert, to be appointed by the two countries, or by a third party agreed upon by the two countries. In the absence of such an agreement, the appointment of the Neutral Expert would be made by the World Bank in Bank, consultation with the two countries. The decision of the Neutral Expert on all matters within his competence shall be

Two, Two the management by the World Bank of a trust fund to meet the expenses of a Neutral Expert. Expert Three, Three a role for the World Bank in the establishment of a Court of Arbitration Arbitration. If the difference does not fall within the mandate of the Neutral Expert, or if the Neutral Expert rules that the difference should be treated as a dispute, then a Court of Arbitration would be established.

According to Kashmiri Separatists, Indus water treaty has deprived J & K state to use its own water resources claiming losses in agriculture and energy. India is currently building a dam and a hydroelectric water project at Nimzoo Bagin (Jammu and Kashmir). Pakistani authorities allege the project is a violation of the Indus Waters Treaty and India holds that it is committed to the treaty.

Both Pakistan and India considered their relations with Afghanistan as most important relations with any other country. Here India was involve with the support of Russia to support Communism and Pakistan was to support Capitalist with the backing of the US. US. Since the renewal of the Afghanistan war, both countries have fought proxy wars against each other, and both countries are reportedly making an extensive efforts to gain influence on Afghan Government for their own regional interests.

Taliban regime was strongly supported by Pakistan in Afghanistan. Afghanistan India firmly opposed the Taliban and criticized Pakistan for supporting it. India established its links with Northern Alliance as India officially recognized their government, with the United Nations. Nations India is training there Police, forces and taking a part in there business activities (helping in infrastructure)

Pakistani President Pervez Musharraf sent a plane load of relief supplies to India from Islamabad to Ahmedabad. That carried 200 tents and more than 2,000 Blankets include food and other related material. Furthermore the President called Indian PM to express his 'sympathy' over the loss from the earthquake.

India offered generous aid to Pakistan in response to the 2005 Earthquake. India sent 25 tons of relief material to Pakistan including food, blankets and medicine Large Indian companies such as medicine. Infosys have offered aid up to $226,000. 226,000 On October 12, an Ilyushin-76 cargo plane ferried across seven truckloads (about 82 tons) of army medicines, 15,000 , 15, blankets and 50 tents and returned to New Delhi. Delhi.

On October 14, India dispatched the second consignment of relief material to Pakistan, by train through the Wagah Border. Border The consignment included 5,000 blankets, 370 tents, 5 tons of plastic sheets and 12 tons of medicine. medicine. A third consignment of medicine and relief material was also sent shortly afterwards by train. India also pledged $25 million as aid to Pakistan. India opened the first of three points at Chakan Da Bagh, in Poonch, on the Line of Control Bagh (LoC) between India and Pakistan. Such generous gestures signaled a new age in confidence, friendliness and cooperation between both India and Pakistan. Pakistan

These include more high-level talks, easing visa restrictions, restrictions and restarting of cricket matches between the two. The new bus service between Srinagar and Muzaffarabad has also helped bring the two sides closer. Pakistan and India have also decided to co-operate on economic fronts.

A "Friends Without Borders" scheme began with the help of two British tourists The idea was that tourists. Indian and Pakistani children would make pen pals and write friendly letters to each other. The idea was so successful in both countries that the organization found it. The World's Largest Love Letter was recently sent from India to Pakistan.

India agreed to resume talks with Pakistan which were suspended after 26/11 Mumbai Attacks. 26/ Attacks. India had put on hold all the diplomatic relations saying it will only continue if Pakistan will act against the accused of Mumbai attacks attacks.

The Samjhauta Express commonly called the Friendship Express. Express. The train was started on July 22, 1976 following the 22, Shimla Agreement and ran between Amritsar and Lahore, Lahore a distance of about 42 km km. On April 14, 2000 in an agreement between Indian 14, 2000, Railways and Pakistan Railways. Railways.

The 2007 Samjhauta Express bombings were a terrorist attack that occurred around midnight on 18 February 2007 on the Samjhauta Express Express. SixtySixty-eight people were killed in the ensuing fire and dozens more were injured. Most were Pakistani civilians but the victims civilians, included some Indian civilians and Indian military personnel guarding the train.

Ten terrorists killed over 173 people and wounded 308 people. people. The sole surviving gun man Ajmal Kasab who was arrested during the attacks was found to be a Pakistani national. In May 2010, an Indian court convicted him on four counts of murder, waging war against India, conspiracy and terrorism offences, and sentenced him to death. death.

India blamed the Lashkar-e-Taiba (a Pakistan-based Lashkarmilitant group) for planning and executing the attacks. Islamabad evidence. resisted the claims and demanded

India provided evidence in the form of interrogations, weapons, candy wrappers, Pakistani Brand Milk Packets, and telephone sets. sets. Indian officials demanded Pakistan extradite suspects

United States: President Barack Obama said: "I States:


strongly condemn the outrageous attacks in Mumbai, and my thoughts and prayers are with the wounded and those who have lost loved ones.

United Kingdom: Foreign Secretary William H said: "I Kingdom:


send my deepest condolences to all those who have lost relatives or been injured in the bomb blasts in Mumbai. These were deplorable acts of terrorism.

EU and NATO: Expressed deepest sympathies to the NATO:


victims of the brutal terrorist attacks in heavily populated areas of Mumbai.

India and Pakistan have shared cultures, food, music, living patterns and languages which underpin the historical ties between the two.

Pakistani singers, musicians, comedians and entertainers have enjoyed widespread popularity in India, with many achieving overnight fame in the Indian film industry Bollywood.

Indian music and films are very popular in Pakistan. Our Wedding styles are also going similar to the Indian culture. Fashion trends are somewhat similar.

The founder of the Sikhism religion was born in the Pakistani Punjab province, in the city of Nankana Sahib.

Each year, millions of Indian Sikh Yatris cross over to visit holy Sikh sites in Nankana Sahib.

Relations between Pakistan and India have also resumed through platforms such as media and communications. Aman ki Asha is a joint venture and campaign between The Times of India and the Jang Group calling for mutual peace and development of diplomatic and cultural relations.

The Indo-Pakistani border is the official international boundary that demarcates the Indian states of Punjab, Rajasthan and Gujarat from the Pakistani provinces of Punjab and Sindh. The Wagah border is the only road crossing between India and Pakistan and lies on the famous Grand Trunk Road, connecting Lahore, Pakistan with Amritsar, India.

Cricket and hockey matches between the two (as well as other sports to a lesser degree such as those of the SAARC games) have often been political in nature.

The Indian and Pakistani cricket teams have been longtime known rivals and their rivalry is considered one of the most intense sports rivalries in the world.

An India-Pakistan cricket match has been estimated to attract up to 3 hundred million television viewers according to well respected TV ratings firm Initiative, and defeat is usually unacceptable to fans of both teams.

In tennis, Rohan Bopanna of India and Aisam-ul-Haq Qureshi of Pakistan have formed a successful duo and have been dubbed as the "Indo-Pak Express

In 1977, both nations launched the Samjhauta Express connecting the Indian city of Attari with the Pakistani city of Lahore. On 18 February, 2006, Thar Express was revived after a period of 41 years to connect the Pakistani city of Karachi through the Munabao station and the Indian city of Jaipur through the Khokhrapar station.

Launch of Delhi-Lahore Bus in 1999, connected cities across the borders in the Punjab region and Sindh as well as between Indian-administered Kashmir and Pakistanadministered Kashmir across the Line of Control (LoC).

Pakistan's cabinet has unanimously approved the award of "Most Favored Nation" trading status to India. Pakistan had previously linked trade liberalization with India to a resolution of the dispute over Kashmir, over which the nations have fought two wars. This move is a significant step towards boosting the peace process between the neighbors.

The status typically reduces tariffs and increases import quotas. Although India granted Pakistan most favored nation status in 1996, Pakistan says it has suffered from strict Indian customs rules and quality standards.

Pakistani decision has come at a time when the country desperately needs trade concessions from international markets to prevent its economy from sinking further. India and Pakistan resumed formal peace talks this year after they were broken off in the wake of the militant attacks in Mumbai (Bombay) in 2008. Indian Trade Minister Anand Sharma said that Delhi would also support a scheme proposed by the European Union to boost textile exports from areas of Pakistan affected by floods with duty waivers.

Pakistan and India financials institutions agree to bolster cooperation.

Mutual funds and capitals markets of India and Pakistan have agreed to explore steps for each other investable class

After the talks in Delhi, ministers from the two sides announced their agreement to boost their annual bilateral trade from current $2.7bn (1.7bn) to $6bn by 2015. They also pledged to ease business travel and promote bilateral trade through the land route. For Pakistan, a significant announcement was a pledge by India to drop its opposition to the European Union's plan to grant Pakistan tariff waiver on selected commodities to help it recover from the devastation of 2010 floods.

There are a number of explanations why Pakistan has so far withheld the MFN status from India.

1.

Political; Political; Pakistani leaders have often linked it to the


resolution of the core issue of Kashmir.

2.

The second is protectionism. For years, domestic industry in Pakistan has feared it would be swamped by imports from India. But even there, the mood appears to have shifted.

India has a variety of non-tariff barriers in place - such as, strict certification codes, customs rules, security clearances and movement restrictions - which make it virtually impossible for Pakistani traders to do business in India.

The best way to end present violence in Kashmir is negotiations between various Kashmiri-separatists groups, Pakistan and India.

Currently a boundary the Line of Control (LOC)- divides the region in two, with one part administered by India and one by Pakistan. India would like to formalize this status quo and make it the accepted international boundary. Factors Opposing Pakistan rejects this plan partially as it will get lesser control over the region and wants greater. Kashmiri political parties too would oppose the plan as it violates the UN resolution for a referendum.

Though New Delhi and much of the Hindu population of Jammu and Buddhists in Ladakh would have no objections to such a plan. Factors Opposing: The Muslim majority population of Pakistan-administered Azad Kashmir, might object the outcome as would a majority of those in Kashmir valley in India.

Pakistan accepts the status quo in return for India giving away disputed Sir Creek ( A 96 km strip of water disputed between India and Pakistan in the Rann of Kutch marshlands)

Kashmir joining Pakistan.


Factors Opposing The communities of Hindus of Jammu and the Buddhists of Ladakh would object the outcome. Hindu Kashmiri Pandits, who were forced out of Kashmir by militants are also a major topic to consider.

As an independent state, the region would somehow be economically feasible with tourism probably being the largest source of income. However being a landlocked country, it would be heavily dependent on India and Pakistan. Factors Opposing The outcome is unlikely because it requires both India and Pakistan (and potentially China) to give up territory.

A smaller independent Kashmir formed out of the current strip of Kashmir (administered by Pakistan) and the Kashmir valley (controlled by India). This would leave the Northern areas with Pakistan while India retains Jammu and Ladakh. However this region should maintain good relations with both India and Pakistan as it is landlocked and is covered with snow in winter. This region can also have its defense and foreign relations jointly handled by India and Pakistan. Factors Opposing: The outcome is unlikely because it requires both India and Pakistan to give up territory.

Now, both of them are Nuclear Powers. So, they should not indulge in war. War is not the solution to any Problem. Up till now both countries have faced a tremendous financial and military loss Have wasted so many precious human lives in three wars. They have to lessen their Defense budget and have to focus on trade and development of their country and their people.

Both of them should resolve their disputes especially Kashmir dispute by the ways and means of Bilateral and Peaceful talks and negotiations. Pakistan and India should learn a lesson from the members of European Union and ASEAN etc, how they have removed the trade barriers for the development of the whole region Pakistan and India must have to form a strong and friendly Trade Block in South Asia for the development of the whole region.