Pakistan’s Economic Coordination Committee (ECC) has allowed the import of cotton and yarn from India. It is a definitely step in the right direction. Islamabad’s decision to suspend bilateral trade with New Delhi in August 2019 was primarily a fallout of India’s decision to scrap Article 370 — the constitutional provision that recognised the special status of the state of Jammu and Kashmir and afforded it a certain amount of autonomy. Another underlying reason for suspending trade between the two countries was also the 200 per cent tariff imposed by New Delhi on Pakistani imports — a move that India implemented earlier that year after revoking its status as a Most Favoured Nation following the suicide bomb attack on the CRPF in Pulwama. Trade between the two countries suffered greatly in 2019-20, with India’s exports to Pakistan dropping nearly 60.5 per cent to $816.62 million, and its imports plummeting around 97 per cent to $13.97 million. The proposal to lift the ban on cotton imports came in the backdrop of a shortfall in raw material for Pakistan’s textile sector, which has reportedly been facing issues due to a low domestic yield of cotton in the country. On top of this, imports from other countries like the US and Brazil have reportedly been more expensive, and take longer to arrive in the country. Indian Prime Minister Narendra Modi’s letter greeting Pakistan on its national day and his counterpart Imran Khan’s response to it have also seem to have eased the atmosphere. The need right now is to move forward with guarded optimism as hawks on both sides — who thrive on confrontation — may well try and derail matters. Both nations should start building on the ceasefire pact and resume a comprehensive dialogue. For only peace can bring progress and prosperity in the two neighbouring countries and also the region and the world.