The general election results in Pakistan have cast uncertainty on the process of exploring re-engagement with India, leading to a cautious stance from both nations. Shehbaz Sharif’s assumption of the role of Prime Minister in Pakistan, following the election, has been acknowledged by Indian Prime Minister Narendra Modi, but both countries remain in a wait-and-watch position regarding the improvement of ties, particularly during the ongoing election process in India.
Pakistan’s new leadership faces the challenge of balancing complex pressures within its coalition government and must seek the Pakistan Army’s approval before taking significant steps such as re-establishing relations with India. The current impasse dates back to the suspension of structured talks after the 2008 Mumbai attacks. Although tentative considerations for re-engagement have been made, including the possibility of exchanging high commissioners, Pakistan’s insistence on addressing the Kashmir issue—regarded as non-negotiable by India—complicates matters.
India and Pakistan have maintained back-channel contacts with some positive outcomes, such as the ceasefire agreement on the Line of Control in February 2021. Yet formal talks are hampered by disagreements and the overarching issue of terrorism. Meanwhile, Shehbaz Sharif prioritizes economic recovery for Pakistan, announcing immediate talks with the IMF to secure an extended fund facility. His administration plans for rigorous economic reforms include privatizing loss-making state enterprises, reducing government size, streamlining tax refunds, and promoting small and medium-sized enterprises to aid the nation’s floundering economy.