Imports from India rise despite trade suspension

ISLAMABAD/NEW DELHI: Imports from India saw a huge increase despite the ongoing suspension of trade between the two neighbouring arch-rivals.

Recent data indicates that the volume of imports from India to Pakistan reached $2.33 million in August this year. This marks an increase from $2.23 million in August last year.

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The trend marks a continuation of rising imports observed in previous months, including in the first quarter of 2024

Pakistan suspended trade with India in August 2019 following the revocation of article 370, which had granted special status to Indian Occupied Jammu and Kashmir.

The decision led to heightened tensions between the two nations and a sharp decline in trade.

However, Pakistan gradually eased some restrictions, allowing import of essential products and live-saving medicines from India.

The economic relationship between Pakistan and India has historically been fraught with political tensions. Prior to the trade suspension, bilateral trade had been on the rise

The total trade volume reached an estimated $2.4 billion in the fiscal year (FY) 2017-2018. India primarily exported cotton, machinery and pharmaceuticals to Pakistan.

Meanwhile, Pakistan  exported textiles, leather goods and agricultural products to India.

Following the trade suspension, the two rivals hit an economic setback. Pakistan’s textile industry, heavily reliant on cotton imports, faced issues due to lack of access to the Indian cotton.