Commerce between India and Pakistan stays miniscule and the suspension of commerce relations is about to impression Pakistan extra, particularly in sectors like prescription drugs and chemical compounds, by which it depends closely on India.
Following the Pahalgam terror assault, India had introduced cutting down of diplomatic relations with Pakistan in addition to suspension of the Indus Water Treaty. Following this, Pakistan has suspended all commerce with India.
Specialists spotlight that bilateral commerce between India and Pakistan has declined considerably within the final 5 years. Whereas oblique commerce routed by way of third international locations, particularly the Center East nonetheless thrives, the federal government is known to be assessing how that may be curtailed, too.
As per official knowledge, India’s exports to Pakistan fell 56.91% year-on-year between April 2024 and February 2025 to $491 million, whereas there have been no imports. Evaluate this to India’s general merchandise exports throughout FY25 of $437.42 billion. Prime exports to Pakistan in FY25 included drug formulations, sugar, bulk medication, residual chemical compounds and auto elements.
India’s exports to Pakistan hit a peak of $2.06 billion in FY19 with imports of $495 million. Then in FY24, exports had picked as much as $1.18 billion whereas imports amounted to $3 million. Imports from Pakistan normally embrace gadgets like Ayush and natural preparations, spices and contemporary fruits.
“For Pakistan, imports from India, particularly of pharma and chemical compounds are vital however represent only a minor portion at 0.06% of India’s general overseas commerce,” identified Ajay Sahai, Director Normal and CEO, Federation of Indian Export Organisations (FIEO).
This isn’t the primary time that commerce has been curtailed. Within the wake of the Pulwama terror assault in 2019, India had revoked probably the most favoured nation standing to Pakistan. Pakistan had additionally suspended commerce relations with India.
Lately, a report by the International Commerce Analysis Initiative had famous that India’s oblique exports to Pakistan are over $10 billion yearly and are routed by way of ports like Dubai, Singapore, and Colombo to sidestep formal commerce restrictions.
