Pahalgam terror attack: The trade between the two countries was up to $3 billion before the Pulwama terror attack in 2019.
New Delhi: India has halted all trade with Pakistan in response to Pahalgam terror attack. The move has escalated tensions between the two countries. India has closed the Attari-Wagah border and the decision is expected to put on hold the cross-border trade of Rs 3886.53 crore between India and Pakistan. According to the estimate of Global Trade Research Initiative (GTRI), direct trade between India and Pakistan is very low, but through indirect means, goods worth 10 billion dollars from India reach Pakistan every year.
Pahalgam terror attack: Shutdown of the Attari-Wagah border
The Attari border is located in Amritsar. Most of the trade between India and Pakistan takes place through this border. After India’s decision, Pakistan has stopped trade with us. Let us tell you that in the year 2024, the trade between India and Pakistan reached 1.2 billion dollars with a bumper increase of 127 per cent. These figures are very low compared to other countries, but it is much higher than the year 2023, because in 2023, only 0.53 billion dollars of trade took place between the two countries.
Trade Of Up To $3 Billion
The trade between the two countries was up to $3 billion before the Pulwama terror attack in 2019. India mainly sends medicines, pharmaceutical ingredients, sugar, tea, coffee, cotton, iron, steel, tomatoes, salt, automotive components and fertilisers to Pakistan. On the other hand, India imports spices, dates, almonds, figs, basil and rosemary herbs, etc, from Pakistan. Due to the closure of trade between the two countries, Pakistan will import Indian goods through other neighbouring countries like UAE, Singapore and Sri Lanka.
Inflation Will GO Up
Importing Indian goods through other countries will increase their transportation cost, which will have a direct impact on the prices of these goods, and most of the basic things will become expensive in Pakistan. This will have a direct impact on the poor people of Pakistan. Experts say that Pakistan’s pharma sector may suffer a setback. In comparison, India is less dependent on its neighbour.
