Updated: March 31, 2021 2:29:55 pm
Pakistan’s Economic Coordination Council, a top decision-making body, on Wednesday allowed the import of cotton and yarn from India, sources said, a step towards reviving suspended trade between the two nuclear-armed neighbours.
The ECC meeting was still ongoing, and was due to debate the import of sugar from India.
India is the world’s biggest producer of cotton and the second biggest sugar producer. Exports to its neighbour will reduce surpluses that are weighing on its local markets, while helping Pakistan to lower soaring sugar prices ahead of Ramadan.
Pakistani buyers have already started making inquiries about buying Indian sugar and cotton, which is being offered at lower prices than supplies from other countries, five dealers said.
The push comes amid a gradual thawing in ties between the two neighbours. India and Pakistan have fought three wars and have shared a fractious relationship since gaining independence in 1947. The militaries of both countries released a rare joint statement last month, announcing a ceasefire along a disputed border in Kashmir.