Pakistan'sU-turn on Thursday came a day after the ECC, under newly-appointed FinanceMinister Hammad Azhar, recommended importing cotton and sugar from India,lifting a nearly two-year-long ban on its import from the neighbouring country

PrimeMinister Imran Khan decided that Pakistan cannot go ahead with any trade withIndia under the current circumstances after holding consultations with keymembers of his Cabinet on importing cotton and sugar from the neighbouringcountry, a media report said on Saturday.Pakistan's U-turn on Thursday came aday after the ECC, under newly-appointed Finance Minister Hammad Azhar,recommended importing cotton and sugar from India, lifting a nearlytwo-year-long ban on its import from the neighbouring country amidst tensionsover the Kashmir issue.

The PrimeMinister after consultations on Friday instructed the Ministry of Commerce andhis economic team to immediately take steps to facilitate the relevant sectors,value added, apparel and sugar, by finding alternative cheap sources of importof the needed commodities, the Dawn newspaper quoted sources as saying.

Variousproposals have been presented to the Economic Coordination Committee (ECC)which considers these suggestions from an economic and commercial point ofview. After consideration by the ECC, its decisions are presented to theCabinet for ratification and final approval, the report said.

Domesticrequirements

In thepresent case, a proposal was presented to the ECC to allow the import ofcotton, cotton yarn and sugar from India keeping in view domestic requirements,it said.With regards to the ECC decision to allow import of sugar, cotton andcotton yarn from India, Khan held consultations with key members of his Cabineton Friday and decided that Pakistan could not go ahead with any trade withIndia under the current circumstances, it said.The ECC had decided oncommercial grounds to recommend these imports for the Cabinet’s consideration.Whilethe decision was not on the formal agenda of the Cabinet meeting, the issue wasbrought up by Cabinet members and the prime minister instructed that the ECC'sdecision be deferred and immediately reviewed, the report said.

The Cabinetheaded by Prime Minister Khan on Thursday rejected the proposal of thehigh-powered committee to import cotton from India, with Foreign Minister ShahMahmood Qureshi asserting that there can be no normalisation of ties until NewDelhi reverses its decision in 2019 to revoke the special status of Jammu andKashmir.

‘Onus onPakistan’

India hassaid that it desires normal neighbourly relations with Pakistan in anenvironment free of terror, hostility, and violence. India has said the onus ison Pakistan to create an environment free of terror and hostility.

India hasalso told Pakistan that “talks and terror” cannot go together and has askedIslamabad to take demonstrable steps against terror groups responsible for launchingvarious attacks on India.

The ECC'sdecision had raised hopes of a partial revival of Pakistan-India bilateraltrade relations, which were suspended after the August 5, 2019 decision of NewDelhi to revoke the special status of Jammu and Kashmir.

In May 2020,Pakistan lifted the ban on the import of medicines and raw material ofessential drugs from India amidst the COVID-19 pandemic.

India's moveto revoke the special status of Jammu and Kashmir in 2019 angered Pakistan,which downgraded diplomatic ties and expelled the Indian High Commissioner inIslamabad. Pakistan also snapped all air and land links with India andsuspended trade and railway services.