M.Chandrashekhar thinks trade is the key to improving relations between India and Pakistan, but..

Pakistan feels that its economy will be swamped by cheaper Indian goods. It has also imposed several barriers in expanding trade with India and refuses transit facilities for Indian companies to export to Afghanistan, in the process forgoing valuable transit revenues. Pakistani consumers pay much higher prices for goods imported from other far off countries when they can get the same at much cheaper rates by importing from their eastern neighbor. Trade would also improve people-to-people contacts, something which both the countries seem to be keen on promoting. It would also help remove distortions in people’s minds about one another and create a sense of confidence amongst them.