Pakistan decides to resume trade with India – A difficult decision?

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By Hamza Ameer
Islamabad, May 11 |
The Pakistan government under Prime Minister Shehbaz Sharif has decided to resume trade with India, designating a trade minister for the task.

Though the decision is being seen as a major development in terms of country’s dire economic condition, it is also being seen as a major compromise by Islamabad and a back step from its previous stance against India after August 5, 2019.

In a federal cabinet meeting, chaired by Shehbaz Sharif, it was decided that Pakistan will be working towards reopening of trade with India and appointing Pakistan People Party’s Qamar Zamar Kaira as Minister of Trade, in the Pakistan High Commission in New Delhi for the task.

Moreover, similar trade officers and ministers are being designated in at least 15 countries, to enhance trade relations and agreements with their respective countries.

The decision to resume trade with India is a difficult decision that Shehbaz Sharif has taken because the former Prime Minister Imran Khan had halted trade with India after the Modi government abrogated Article 370 of its constitution and changed the special status of Jammu and Kashmir.

Imran Khan had also downgraded diplomatic ties with India and asked the then sitting Indian High Commissioner in Islamabad to leave the country also.

Previously, the same recommendation of resumption of trade with India was rejected by then Prime Minister Imran Khan till the restoration of the special status of Jammu and Kashmir.

The current decision has come under sever criticism by analysts and public at large, who accuse the Shehbaz Sharif government for compromising Pakistan’s interest and also damaging hopes of the people of Kashmir.

“Any step taken by PM Shehbaz Sharif led government towards trade with India will not only be a sellout of the Kashmiris but also the beginning of a soft surrender to Indian hegemony,” said senior journalist and analyst Nazim Zehra.

The decision is also not expected to be of any help to Shehbaz Sharif politically. However, it has certainly given a new point for former premier Imran Khan, who has slammed Shehbaz Sharif for what he called bowing down to India and back tracking on the country’s policy, agreed upon after August 5, 2019.

Pakistan’s economic condition is moving towards a meltdown, which is coupled with the strict demands from the International Monetary Fund (IMF) for the revival of its loan facility of $6 billion.

Source: IANS

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Weekly Technical Share Market Outlook

Weekly Technical Share Market Outlook

The Indian market recovered sharply on the last trading day amid the weekend after a continuous fall. Market has managed to halt above 16000 Nifty levels after continuous losing streak. Index reacted violently, grasping Indian as well as global factors throughout the week. Simultaneously, Inflation is catching up and profit margins are taking a hit.

 

Sensex advanced 1532 points or 2.90 percent while Nifty gained 484 points or 3.07 percent in a week. Simultaneously, Bank nifty has overcome bear’s dominance ending the session with 3.49 percent gain. Sectorally,Nifty Metal saw the highest gains of 7.40 percent followed by the Realty and Auto added over 4% gain. On the flip side Nifty IT tumbled 2.82 percent on weekly basis. Midcap and Small Cap measures rising nearly 2 percent as well.

In Nifty stock, EICHERMOT gained 11.31% while TECHM lost 5.98% on a weekly basis. INDIA VIX closes at 23.10 suggests volatility driven market is going to remain intact. Coming to the OI Data, on the call side highest OI witnessed at 17000 Nifty followed by 16800 Nifty strike price while on the put side, the highest OI was at 16000 Nifty followed by 15800 Nifty strike price. Technically, Nifty has formed a Tweezer Bottom type pattern in the weekly chart suggesting a short term buying rally may drive the market until monthly expiry. On the daily chart, price has rebounded from the lower Bollinger band as well.

Momentum indicators MACD & Stochastic were trading with a positive crossover & reversed from oversold zone. However, Index is still struggling to get the support of 50 Simple Moving Average in daily chart. Short term investors and traders are advised to work with option strategies to neutralize the volatility. Overall, Nifty is having support at 15700 mark while on the upside 16700 followed by 16500 may act as an immediate resistance. While Bank nifty has support around 32500 while resistance is placed at 36000 on weekly chart.

Sumeet Bagadia
Executive Director
Choice Broking

Source: Choice India

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