Trade Relations between Pakistan and India has been authored by Mr. Pradeep S. Mehta, Secretary General, CUTS International and his team, as a background paper for Pakistan-India Parliamentarians Dialogue-III facilitated by PILDAT. The paper explores the dynamics, initiatives and future prospects of Trade and Economic relations between the two countries. Pakistan and India have been trading with each other since 1947 with a brief period of hiatus for nine years: 1965-1974. However, despite a largely uninterrupted trade regime since 1974, the extent of trade between India and Pakistan is limited and almost negligible. The paper concludes with the optimism that both sides are increasingly realising the need for mutual co-existence and interdependence. Therefore there should be a better political buy-in for not just normalising India-Pak trade relations but to enhance it for the benefit of public of both sides and promote peaceful relations. As an independent Pakistani think-tank, PILDAT believes that while diplomatic channels for Dialogue must continue, Parliamentarians from both countries should be facilitated on both sides for a greater interaction and developing a better understanding for resolving issues that should lead diplomatic initiatives. It is for this objective that PILDAT has been facilitating Parliamentarians Dialogues.