According to a report in Dawn, the decision was taken in the meeting of the Economic Coordination Committee chaired by Pakistan’s newly appointed Finance Minister Hammad Azhar.

According to directives, the government permitted private players to import half a million tonnes of white sugar from India. There was also a proposal for the import of cotton and cotton yarn from India.

Earlier, Pakistan had suspended all trade relations with India in August 2019 when the latter bifurcated the state of Jammu and Kashmir and ended the special status it enjoyed under the Indian constitution.

However, in May 2020, in the wake of the Covid-19 pandemic, Pakistan exempted the import of medicine and raw materials from India to ensure there was no shortfall of essential medicines in the country.

The resumption of trade ties was expected for some weeks now as the two nations had already given enough hints to work for achieving basic normalcy in the bilateral ties. Interestingly, the move came just a day after Pakistan Prime Minister Imran Khan responded to a letter written by Indian Prime Minister Narendra Modi on the occasion of Pakistan's National Day.