Political Risk / India
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Suspicions Are Rife
August 2006 | Political OutlookSorry, you must be a subscriber to view this article in full. If you are a subscriber please login.
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BMI View: The recent bomb blasts in Mumbai have provoked accusations from New Delhi that Islamabad is not doing enough to combat terroism. Demands for Pakistan to step up its, particularly against Lashkar-e-Taiba have been reiterated by India, but Pakistan President Pervez Musharraf will be reluctant to displease the religious right ahead of next year's elections. We expect bilateral peace talks to resume on the sidelines of this August's SAARC Summit meeting, but Indian anger over continued terrorist attacks together with the unresolved dispute over Kashmir will ensure that relations are characterised by suspicion over our forecast