IceCold
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The ball is in pakistan's court now. Pak govt can choose to play it or leave it.
If the rail-link is allowed, it is a win-win situation: India gets new market, Pakistan gets revenue, and on the back of more economic dependence, relations will improve.
If rail-link is not allowed, it is a lose-lose situation. India will have to go for a new route which might be more expensive, pak doesn't earn any revenue, and due to lack of economic activity between India and Pak, relations will not improve on that front, and can deteriorate further. but economic loss will be more for Pak, since they will completely miss out on any revenue.
Also, this is a transit route for goods, not military hardware, so Pak is not compromising its sovereignty. Also, this rail link not a gift. Pak will be earning a good amount of transit fees. So this is business. Mutually beneficial business.
Just consider it as a business deal offered by any other country. Don't need to bring India bias into it. Pak can negotiate on transit fees and other business conditions to maximise benefit for its citizens.
The revenue generated is nothing when we compare it with other factors one of which is the loss to our markets when we give India the access. Its only a win situation for India only, definitely not for us.