{"id":1682,"date":"2025-05-12T05:26:28","date_gmt":"2025-05-12T05:26:28","guid":{"rendered":"https:\/\/www.iiiem.in\/blog\/?p=1682"},"modified":"2025-05-12T05:26:57","modified_gmt":"2025-05-12T05:26:57","slug":"trade-between-india-and-pakistan-stopped","status":"publish","type":"post","link":"https:\/\/www.iiiem.in\/blog\/trade-between-india-and-pakistan-stopped\/","title":{"rendered":"Trade between India and Pakistan &#8211; Stopped"},"content":{"rendered":"<h2><strong>India-Pakistan Bilateral Trade &#8211; the Trade that WAS\u00a0<\/strong><\/h2>\n<h3 class=\"\" data-start=\"177\" data-end=\"211\"><strong data-start=\"181\" data-end=\"211\">Trade Overview (2018\u20132025)<\/strong><\/h3>\n<p class=\"\" data-start=\"213\" data-end=\"363\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">India and Pakistan have experienced a tumultuous trade relationship, heavily influenced by political tensions and policy decisions.<\/span> <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">In the fiscal year 2018\u201319, bilateral trade peaked at approximately <strong data-start=\"68\" data-end=\"85\">$2.56 billion<\/strong>, with India exporting <strong data-start=\"108\" data-end=\"125\">$2.06 billion<\/strong> worth of goods to Pakistan and importing <strong data-start=\"167\" data-end=\"185\">$494.8 million<\/strong> in return.<\/span><\/p>\n<p class=\"\" data-start=\"365\" data-end=\"521\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">However, following the <strong data-start=\"23\" data-end=\"68\">Pulwama terrorist attack in February 2019<\/strong>, India revoked Pakistan&#8217;s <strong data-start=\"95\" data-end=\"125\">Most Favoured Nation (MFN)<\/strong> status and imposed a <strong data-start=\"147\" data-end=\"167\">200% import duty<\/strong> on Pakistani goods.<\/span> <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Pakistan responded by suspending bilateral trade.<\/span> <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Consequently, trade volumes plummeted<\/span><\/p>\n<ul data-start=\"523\" data-end=\"1210\">\n<li class=\"\" data-start=\"523\" data-end=\"656\">\n<p class=\"\" data-start=\"525\" data-end=\"656\"><strong data-start=\"525\" data-end=\"536\">2019\u201320<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">India&#8217;s exports to Pakistan dropped to <strong data-start=\"39\" data-end=\"55\">$816 million<\/strong>, and imports fell to <strong data-start=\"77\" data-end=\"95\">$13.97 million<\/strong>.<\/span><\/p>\n<\/li>\n<li class=\"\" data-start=\"658\" data-end=\"791\">\n<p class=\"\" data-start=\"660\" data-end=\"791\"><strong data-start=\"660\" data-end=\"671\">2020\u201321<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Exports further declined to <strong data-start=\"28\" data-end=\"44\">$329 million<\/strong>, with imports at <strong data-start=\"62\" data-end=\"78\">$0.4 million<\/strong>.<\/span><\/p>\n<\/li>\n<li class=\"\" data-start=\"793\" data-end=\"926\">\n<p class=\"\" data-start=\"795\" data-end=\"926\"><strong data-start=\"795\" data-end=\"806\">2022\u201323<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">India exported <strong data-start=\"15\" data-end=\"33\">$627.1 million<\/strong> worth of goods, while imports were <strong data-start=\"69\" data-end=\"87\">$20.11 million<\/strong>.<\/span><\/p>\n<\/li>\n<li class=\"\" data-start=\"928\" data-end=\"1061\">\n<p class=\"\" data-start=\"930\" data-end=\"1061\"><strong data-start=\"930\" data-end=\"941\">2023\u201324<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Exports rebounded to <strong data-start=\"21\" data-end=\"38\">$1.18 billion<\/strong>, but imports remained low at <strong data-start=\"68\" data-end=\"85\">$2.88 million<\/strong>.<\/span> <strong data-start=\"1065\" data-end=\"1090\">April\u2013January 2024\u201325<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">India&#8217;s exports to Pakistan stood at <strong data-start=\"37\" data-end=\"56\">$447.65 million<\/strong>, with imports at a mere <strong data-start=\"81\" data-end=\"98\">$0.42 million<\/strong>.<\/span><\/p>\n<\/li>\n<\/ul>\n<h2><strong data-start=\"1216\" data-end=\"1242\">Key Export Commodities<\/strong><\/h2>\n<h4 data-start=\"1244\" data-end=\"1322\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">India&#8217;s exports to Pakistan have primarily included:<\/span><\/h4>\n<ul data-start=\"1324\" data-end=\"2457\">\n<li class=\"\" data-start=\"1324\" data-end=\"1427\">\n<p class=\"\" data-start=\"1326\" data-end=\"1427\"><strong data-start=\"1326\" data-end=\"1347\">Organic chemicals<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">$129.55 million<\/span><span class=\"\" data-state=\"closed\"><span class=\"ms-1 inline-flex max-w-full items-center relative top-[-0.094rem] animate-[show_150ms_ease-in]\"><span class=\"relative start-0 bottom-0 flex h-full w-full items-center\"><span class=\"flex h-4 w-full items-center justify-between absolute\"><span class=\"max-w-full grow truncate overflow-hidden text-center\">Trading\u00a0<\/span><\/span><\/span><\/span><\/span><\/p>\n<\/li>\n<li class=\"\" data-start=\"1429\" data-end=\"1538\">\n<p class=\"\" data-start=\"1431\" data-end=\"1538\"><strong data-start=\"1431\" data-end=\"1458\">Pharmaceutical products<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">$110.06 million<\/span><\/p>\n<\/li>\n<li class=\"\" data-start=\"1540\" data-end=\"1655\">\n<p class=\"\" data-start=\"1542\" data-end=\"1655\"><strong data-start=\"1542\" data-end=\"1575\">Sugar and sugar confectionery<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">$85.16 million<\/span><\/p>\n<\/li>\n<li class=\"\" data-start=\"1657\" data-end=\"1758\">\n<p class=\"\" data-start=\"1659\" data-end=\"1758\"><strong data-start=\"1659\" data-end=\"1678\">Auto components<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">$28.57 million<\/span><\/p>\n<\/li>\n<li class=\"\" data-start=\"1760\" data-end=\"1864\">\n<p class=\"\" data-start=\"1762\" data-end=\"1864\"><strong data-start=\"1762\" data-end=\"1784\">Petroleum products<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">$11.63 million<\/span><\/p>\n<\/li>\n<li class=\"\" data-start=\"1760\" data-end=\"1864\">\n<p class=\"\" data-start=\"1762\" data-end=\"1864\"><strong data-start=\"1868\" data-end=\"1883\">Fertilizers<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">$6 million<\/span><\/p>\n<\/li>\n<li class=\"\" data-start=\"1965\" data-end=\"2059\">\n<p class=\"\" data-start=\"1967\" data-end=\"2059\"><strong data-start=\"1967\" data-end=\"1979\">Plastics<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">$4.16 million<\/span><\/p>\n<\/li>\n<li class=\"\" data-start=\"2061\" data-end=\"2153\">\n<p class=\"\" data-start=\"2063\" data-end=\"2153\"><strong data-start=\"2063\" data-end=\"2073\">Rubber<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">$1.88 million<\/span><\/p>\n<\/li>\n<li class=\"\" data-start=\"2155\" data-end=\"2251\">\n<p class=\"\" data-start=\"2157\" data-end=\"2251\"><strong data-start=\"2157\" data-end=\"2171\">Vegetables<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">$3.77 million<\/span><\/p>\n<\/li>\n<li class=\"\" data-start=\"2253\" data-end=\"2362\">\n<p class=\"\" data-start=\"2255\" data-end=\"2362\"><strong data-start=\"2255\" data-end=\"2282\">Coffee, tea, and spices<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">$1.66 million<\/span><\/p>\n<\/li>\n<li class=\"\" data-start=\"2364\" data-end=\"2457\">\n<p class=\"\" data-start=\"2366\" data-end=\"2457\"><strong data-start=\"2366\" data-end=\"2377\">Cereals<\/strong>: <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">$1.39 million<\/span><\/p>\n<\/li>\n<\/ul>\n<h3 class=\"\" data-start=\"2500\" data-end=\"2533\"><strong data-start=\"2504\" data-end=\"2533\">Trade via Third Countries<\/strong><\/h3>\n<p class=\"\" data-start=\"2535\" data-end=\"2737\"><span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Despite official trade restrictions, goods have continued to flow between the two countries through indirect routes, notably via <strong data-start=\"129\" data-end=\"164\">Dubai, Singapore, and Sri Lanka<\/strong>.<\/span> <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">This indirect trade is estimated to add <strong data-start=\"40\" data-end=\"50\">15\u201325%<\/strong> to the cost of goods.<\/span> <span class=\"relative -mx-px my-[-0.2rem] rounded px-px py-[0.2rem] transition-colors duration-100 ease-in-out\">Analysts suggest that while official trade figures are low, actual trade volumes may be higher due to these unofficial channels.<\/span><\/p>\n<p>After the Pahalgam attacks by the terrorists on Indian Soil, India has stopped all kinds of business, diplomate, trade and political relations with Pakistan. No third country exports or imports are allowed. Borders are locked, Indus Waters Treaty is in abeyance. India taken control over the Indus river and its subsidiaries that flow through Indian land into Pakistan. Chenub,\u00a0 River belonging to Pakistan is blocked by India with its dam and disrupted the flow of water to the lands of Pakistan.<\/p>\n<p>India&#8217;s <strong data-start=\"3472\" data-end=\"3519\">abeyance of the Indus Waters Treaty in 2025<\/strong> marks a turning point in South Asian geopolitics. While not a formal withdrawal, the move has <strong data-start=\"3614\" data-end=\"3670\">strategic, humanitarian, and diplomatic consequences<\/strong>. If unresolved, it could trigger long-term environmental and security challenges, both regionally and globally.<\/p>\n<p>Thank you<\/p>\n","protected":false},"excerpt":{"rendered":"<p>India-Pakistan Bilateral Trade &#8211; the Trade that WAS\u00a0 Trade Overview (2018\u20132025) India and Pakistan have experienced a tumultuous trade relationship, heavily influenced by political tensions and policy decisions. In the fiscal year 2018\u201319, bilateral trade peaked at approximately $2.56 billion, with India exporting $2.06 billion worth of goods to Pakistan and importing $494.8 million in\u2026 <span class=\"read-more\"><a href=\"https:\/\/www.iiiem.in\/blog\/trade-between-india-and-pakistan-stopped\/\">Read More &raquo;<\/a><\/span><\/p>\n","protected":false},"author":1,"featured_media":1678,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1682","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-iiiem"],"_links":{"self":[{"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/posts\/1682","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/comments?post=1682"}],"version-history":[{"count":4,"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/posts\/1682\/revisions"}],"predecessor-version":[{"id":1690,"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/posts\/1682\/revisions\/1690"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/media\/1678"}],"wp:attachment":[{"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/media?parent=1682"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/categories?post=1682"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.iiiem.in\/blog\/wp-json\/wp\/v2\/tags?post=1682"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}