India and Pakistan regain cross-border trading

11 Aug 2016 | By Mansi Motwani

On 9th August, cross-border trading between India and Pakistan resumed after being halted due to widespread discontent in Pakistan-occupied Kashmir (PoK).

After the Pakistan occupied Kashmir (PoK) 2016 elections, the region witnessed a collective dissent against the alleged rigging of elections.

Trade routes in Poonch, India and Rawalakot in Pakistan were closed down on 3rd August, 2016, for a second time within 14 days.

In context: Cross-Border Trade between India and Pakistan

BackgroundIndia-Pakistan Trade Relations

Trade relations between India and Pakistan are facilitated by the Federation of Indian Chambers and Commerce (FICCI) and the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

The two organisations represent the trade and business community of their respective countries.

Facilitating trade and business opportunities between India and Pakistan and increasing ethical activities between the two is the main aim of the organisations.

Informal TradeIndia-Pakistan's Informal Trade holds twice the value of Formal Trade

Trade between any two countries that should be a part of the national income statistics (according to conventional national income accounting), but is not, is known as Informal Trade.

In the year 2013, informal trade between India and Pakistan stood at $3 billion.

Ready-made garments, cosmetics, jewellery, spices, livestock, drugs and pharma, machinery, textiles, cloth, dry fruits are products traded informally between the two.

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Alleged Rigging of Elections

The Ruling Pakistan Muslim League-Nawaz (PML-N) faced allegations of rigging the Pakistan occupied Kashmir (PoK) elections, 2016. The Pakistan Peoples Party (PPP) and Pakistan Tehreek-e-Insaf (PTI) leveled these allegations against the government.
Protests, Demonstrations observed in PoK over rigged elections

29 Jul 2016Protests, Demonstrations observed in PoK over rigged elections

When the PML-N party won 32 seats out of 41, locals in Pakistan-occupied Kashmir (PoK) alleged that the elections were rigged with the help of the Inter-Services Intelligence (ISI).

The region was engulfed in protests and demonstrations against the same.

The Pakistani flag was burnt in Neelum Valley; election posters of prominent leaders were blackened.

Muzaffarabad, Kotli, Chinari and Mirpur also witnessed protests.

11 Aug 2016India and Pakistan regain cross-border trading

Internal Crisis

"Trade remained suspended for at least two weeks because of some internal crisis in Pakistan occupied Kashmir. Trade finally resumed today. Ten vehicles have crossed from our side, more than 20 are coming from their end," said the custodian of the Trade Facilitation Centre, Poonch.