Trade between India and Pakistan remains tiny and the suspension of trade relations should have a more impact on Pakistan, especially in sectors such as pharmaceuticals and chemicals, in which it is strongly based on India.
Following Pahalgam’s terrorist attack, India announced the reduction of diplomatic relations with Pakistan as well as the suspension of the Indus water Treaty. After that, Pakistan has suspended all trade with India.
Experts point out that bilateral trade between India and Pakistan has decreased considerably over the past five years. While indirect trade has sent to third countries, in particular the Middle East still flourishes, the government also assesses how it can also be reduced.
In accordance with official data, India exports to Pakistan dropped 56.91% in annual shift between April 2024 and February 2025 to 491 million dollars, when there was no import. Compare this to the exports of global goods from India during financial year 25 of $ 437.42 billion. The best exports to Pakistan during fiscal year 25 included medication formulations, sugar, bulk medicines, residual chemicals and car components.
India exports to Pakistan reached a peak of $ 2.06 billion in 2019 with imports of $ 495 million. Then, during fiscal year 24, exports had picked up up to $ 1.18 billion while imports amounted to $ 3 million. Imports from Pakistan generally include articles like Ayush and plant preparations, spices and fresh fruit.
“For Pakistan, imports from India, in particular pharmaceuticals and chemicals, are important but constitute only a minor part of 0.06% of the overall foreign trade in India,” said Ajay Sahai, CEO and CEO of the Federation of Indian Export Organizations (FIEO).
This is not the first time that trade has been reduced. Following Pulwama’s terrorist attack in 2019, India revoked the status of the most favored nation in Pakistan. Pakistan had also suspended trade relations with India.
Recently, a report by the Global Trade Research Initiative noted that Indirect Exports from India to Pakistan are more than $ 10 billion per year and are transported by ports like Dubai, Singapore and Colombo to bypass formal formal restrictions.
