Pakistan has recently opened up trade with India with whom they have had much conflict with over the Kashmir territory since the two states were created in 1947. Even though Pakistan hasn’t granted India Most-Favored-Nation status Pakistani exports to India have increased tremendously in the last year. According to the “commercial intelligence and statistics of the ministry of commerce & industry” Pakistani exports to India grew 66% from April till December 2012. Exports reached over $460 million, compared with $277 million during the same period 2011.
If this trade relationship continues to flourish and expand then we can assume that military tensions will subdue. History has shown us that two countries involved in trade are less willing to go to war as they have much at stake. War is generally less beneficial than the continued trade and economical benefits of trade for both nations. Both nations in 2012 also signed agreements agreeing to “customs cooperation, mutual recognition of standards and redressal of trade grievances”. If this bilateral trade continues we can expect to see less tension over the Kashmir territorial dispute and perhaps even a better friendship develop between these two states.