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Introduction "Like porcelain, Indo-Pak relations have to be handled delicately and sensitively. If you drop it, it will break" – Pakistan Foreign secretary Riaz khokhar. A separatist insurgency seeking independence or the merger of mostly Muslim Kashmir with Pakistan by terrorists in India's part of Kashmir, has left 61,000 dead, most of them civilians, since it began in 1989.Pervez Mushraff and his Civilian Government so far, had not done enough to keep his promise of permanently ending the infiltration of terrorists into Kashmir from across Pakistani territory. They were indifferent to the peace initiatives India had taken .Now Pakistan has come forward with peace initiative. One cannot be blamed if he or she questions about the genuineness of this initiative. This report is based on a study on the following areas so as to know whether this step taken by Pakistan is genuine or fake. § Communication § Economic Issues § Fazlul Rehman's India trip § International pressure on Pakistan § Trade Relations between India and Pakistan § Terrorist Control Ø Communication A serious endeavour in connecting the people, Pakistan Prime Minister Mr. Zafrullah Khan Jamali, took an initiative in restarting th