Abstract
In South Asia, the political and the economic remained juxtaposed because of the existing disputes, particularly Kashmir. There have been many confidence-building measures (CBMs) between India and Pakistan, but tensions continue because of Kashmir. In October 2004 President Musharraf suggested a formula to start a debate on the options, to look at Kashmir as seven regions and identify them, but the Indian response was negative. There were positive developments like the start of a Srinagar-Muzaffarabad bus service and the possibility of a gas pipeline from Iran to India across Pakistan. There were other steps like the updating of the visa agreement; the visit of the APHC leadership to the other side of the LoC, which highlighted the need to involve the Kashmiris in any future settlement. The October 2005 earthquake also led to a further opening of the LoC. Track II meetings have led to increased understanding, the airing of feasible alternatives and suggestions for CBMs; back channel diplomacy has been very useful in the India-Pakistan context.
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