Pak Trade Suspension Not To Have Any Impact
Imports from Pakistan were negligible at $0.42 million, limited to niche items like figs, basil and rosemary.
Chennai: As the official trade with Pakistan was crippled after the Pulwama incident, Pakistan’s full suspension of trade now may not affect Indian exporters.
Following the strategic tensions between the two countries in the aftermath of the Pahalgam incident, Pakistan said that it will suspend trade with India.
However, trade was already crippled post-Pulwama in 2019. India had revoked Pakistan's MFN status and slapped a 200 per cent duty on its imports. In retaliation, Pakistan halted all bilateral trade by August 2019, except medicines and a few other products.
Between April 2024–January 2025, India exported $447.7 million worth of goods to Pakistan. These include key pharmaceuticals valued over $110.1 million, APIs for making of medicines for $129.6 million, sugar, auto parts and fertilizers, according to GTRI.
Imports from Pakistan were negligible at $0.42 million, limited to niche items like figs, basil and rosemary.
Due to blockage of official channels, an estimated $10 billion trade survives via re-exports through the UAE or Singapore. According to trade sources, Pakistan imports several Indian products, including chemicals, pharmaceuticals, cotton and yarn, tea, coffee, dyes, vegetables like onions and tomatoes, as well as iron, steel, auto parts, sugar, and salt. On the other hand, India receives Himalayan pink salt and dry fruits such as dates, apricots, and almonds from Pakistan, also routed through third countries.
“The goods are re-labelled with a different country of origin at the bonded warehouses of the third countries and are shipped,” said sources.
“In short, border closures halt formal trade but not demand. Pakistan will continue sourcing Indian goods, just at a higher cost and through third countries,” said GTRI.