Pakistan and India Relations

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PAKISTAN’S RELATIONS WITH INDIA: BEYOND KASHMIR?
Asia Report N°224 – 3 May 2012

TABLE OF CONTENTS
EXECUTIVE SUMMARY AND RECOMMENDATIONS ................................................. i
I. BILATERAL RELATIONS ............................................................................................. 1
A. TWO STEPS FORWARD, ONE STEP BACK ......................................................................................1
B. DEMOCRATIC TRANSITION AND THE COMPOSITE DIALOGUE ........................................................2

II. TRADING FOR PEACE .................................................................................................. 5
A. MOVING FORWARD......................................................................................................................5
B. TRADE POTENTIAL .......................................................................................................................7
C. FACILITATING ECONOMIC COOPERATION.....................................................................................9

III. WATER AND ENERGY ................................................................................................ 10
IV. POTENTIAL SPOILERS ............................................................................................... 12
A. THE MILITARY AND THE MULLAHS............................................................................................12
B. THE AFGHANISTAN FACTOR ......................................................................................................14

V. THE VIEW FROM NEW DELHI ................................................................................. 15
A. BILATERAL RELATIONS AND REGIONAL PEACE .........................................................................15
B. TERRORISM AND THE NORMALISATION PROCESS .......................................................................16

VI. THE KASHMIR IMPASSE

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