ISAS Insights

Pakistan-India détente is moving at a reasonable pace, with steps being taken that should bring a bit closer the long-separated economies of South Asia’s two largest countries. The process started once Pakistan had accepted the Indian position that it would be more practical for Islamabad and New Delhi to focus on economic and trade issues, putting on the back-burner some of the more contentious differences such as Kashmir. Now three additional steps have been taken in this dance by the two countries. They are moving from the slow fox trot to the brisk pace of tango. The three steps are the invitation by India to Pakistan to resume cricket matches between the two countries, starting this fall with a visit to India by the Pakistani side. A formal invitation by President Asif Ali Zardari to Prime Minister Manmohan Singh to visit Pakistan and attend the birth anniversary of Guru Nanak Dev on November 28 this year. The third decision comes from India that allows individual Pakistanis and Pakistan firms to invest in India. This paper examines what these steps may achieve for the two countries.