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India-Pakistan Dialogue: Track-II Diplomacy, Terrorism & Functional Cooperation Explained

India-Pakistan Dialogue: Track-II Diplomacy, Terrorism & Functional Cooperation Explained 10 Jul 2026

India-Pakistan Dialogue: Track-II Diplomacy, Terrorism & Functional Cooperation Explained

GS 2: India and its Neighborhood- Relations.

Context: The debate over resuming dialogue between India and Pakistan has resurfaced after a group of eminent citizens, led by Gandhian thinker O.P. Shah, urged both governments to restart diplomatic engagement. 

While dialogue could promote regional peace and economic cooperation, India’s long-standing position remains that “terror and talks cannot go together.

Background

  • Bilateral dialogue has remained suspended since the Pathankot Air Base attack (2016).
  • India has experienced repeated cross-border terrorist attacks, including:
    • Uri Attack (2016)
    • Pulwama Attack (2019)
    • Pahalgam Attack (2025)
  • India maintains that cross-border terrorism sponsored by Pakistan is the principal obstacle to normal bilateral relations.

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Arguments in Favour of Resuming Dialogue

Promoting Regional Peace and Stability

  • Diplomatic engagement reduces the risk of military escalation between two nuclear-armed neighbours.
  • Continuous communication helps in crisis management and confidence-building.

Expanding Trade and Economic Cooperation

  • Improved bilateral relations would facilitate direct trade, reducing transportation costs and dependence on third-country routes.
  • Greater trade would particularly benefit border states such as Punjab and improve regional connectivity.

Boosting Tourism and People-to-People Contacts

  • Improved relations could revive religious tourism, cultural exchanges, and educational cooperation.
  • Greater interaction would help reduce mutual mistrust over the long term.

Enhancing Regional Connectivity

  • Better relations would improve India’s access to Afghanistan and Central Asia through land routes.
  • Enhanced connectivity would strengthen regional economic integration.

Using Diplomacy to Resolve Differences

  • Dialogue provides an institutional mechanism to discuss disputes peacefully instead of allowing tensions to escalate.

Arguments Against Immediate Dialogue

Persistent Cross-Border Terrorism

  • India continues to face terrorist attacks originating from Pakistan-based groups.
  • Any dialogue without credible action against terrorism may undermine India’s security concerns.

Pakistan’s Military Dominance

  • Pakistan’s military establishment continues to exert significant influence over the country’s foreign and security policies.
  • Sustainable peace remains difficult unless the military genuinely supports normalization.

Lack of Trust

  • Several previous peace initiatives were followed by major terrorist attacks, eroding public and political confidence.
  • The recurrence of violence has created a significant trust deficit.

Domestic Political Costs

  • Any future terrorist attack after the resumption of dialogue could impose heavy political costs on India’s democratic leadership.
  • Public opinion strongly favours a firm response to terrorism.

Historical Attempts at Peace

Initiative Outcome
Indus Waters Treaty (1960) Continues despite bilateral tensions.
Simla Agreement (1972) Established bilateral framework for dispute resolution.
Lahore Declaration (1999) Soon followed by the Kargil Conflict, weakening trust.
Prime Minister Vajpayee’s Lahore Bus Diplomacy Peace initiative was overshadowed by subsequent hostilities.
Prime Minister Narendra Modi’s Lahore Visit (2015) Relations deteriorated after the Pathankot and Uri attacks.

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Role of Track-II Diplomacy

What is Track-II Diplomacy?

  • Track-II diplomacy refers to informal dialogue between retired diplomats, academics, policy experts, and civil society representatives.
  • It complements official diplomacy by creating an environment conducive to future negotiations.

Importance

  • It helps maintain communication even when formal diplomatic channels remain suspended.
  • It contributes to confidence-building and the exchange of ideas.

Areas Where Cooperation is Possible

Climate Change

  • Both countries face increasing risks from heatwaves, floods, droughts, and glacier melt.
  • Joint scientific cooperation can improve climate resilience.

Air Pollution

  • Seasonal transboundary air pollution, particularly during winter, affects populations on both sides of the border.
  • Cooperation on monitoring and mitigation can produce mutual benefits.

Water and Environmental Security

  • India and Pakistan share several river systems.
  • Collaborative efforts on water conservation, flood forecasting, and groundwater management can reduce future conflicts.

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Disaster Management

  • Joint mechanisms for early warning systems, disaster response, and humanitarian assistance can save lives during natural disasters.

Public Health Cooperation

  • Cooperation during pandemics and disease outbreaks can strengthen regional health security.

These issues constitute Non-Traditional Security (NTS) challenges, where cooperation is less politically contentious and can build confidence gradually.

Challenges to Meaningful Dialogue

  • Cross-border terrorism continues to remain the biggest obstacle.
  • Deep trust deficit persists because of repeated violations of peace initiatives.
  • Military influence in Pakistan’s policymaking complicates sustained diplomatic engagement.
  • Domestic political sensitivities in both countries restrict diplomatic flexibility.
  • China-Pakistan strategic cooperation adds another dimension to India’s security concerns.

Way Forward

  • Pakistan must take credible and verifiable action against terrorist organisations operating from its territory.
  • India should continue to maintain that terrorism and dialogue cannot proceed simultaneously until tangible progress is visible.
  • Track-II diplomacy should remain active to preserve channels of communication during periods of official disengagement.
  • Functional cooperation should begin in areas such as climate change, disaster management, environmental protection, and public health.
  • Confidence-Building Measures (CBMs) should be strengthened through humanitarian exchanges, religious pilgrimages, and prisoner repatriation.
  • Regional peace efforts should remain guided by the principles of the Simla Agreement (1972) and the Lahore Declaration (1999).

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Conclusion

A stable relationship between India and Pakistan is essential for peace and prosperity in South Asia. However, lasting dialogue requires an atmosphere free from terrorism and violence. While comprehensive negotiations remain difficult under present circumstances, cooperation on non-traditional security issues and continued Track-II engagement can help preserve communication and gradually rebuild confidence.

Practice Mains:

Q. In the context of frozen bilateral ties between India and Pakistan, evaluate the feasibility of ‘Functional Dialogue’ over non-territorial issues. Can Track-II diplomacy pave the way for durable peace? (15 Marks, 250 Words)

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India-Pakistan Dialogue: Track-II Diplomacy, Terrorism & Functional Cooperation Explained

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