For how long has the trade between India and Pakistan been closed, what items were traded

India-Pakistan Trade / For how long has the trade between India and Pakistan been closed, what items were traded

India-Pakistan Trade - For how long has the trade between India and Pakistan been closed, what items were traded

India-Pakistan Trade: Relations between India and Pakistan have long been strained, and since 2019, trade relations between the two countries have come to a complete standstill. The Pulwama terror attack and subsequent events caused a deep rift in trade and diplomatic relations between the two countries. The closure of trade between Pakistan and India has proved to be a major setback, especially for Pakistan. While it has had a limited impact on India, it has become a serious challenge for Pakistan's economy and general public.

Pulwama attack and end of trade relations

The terrorist attack on Indian security forces in Pulwama in 2019 brought diplomatic and trade relations between India and Pakistan to a new low. After this attack, India ended Pakistan's "Most Favored Nation" (MFN) status, a special trade status that provided relaxation in trade relations. Along with this, India increased the custom duty on goods imported from Pakistan by up to 200%, which almost ended imports from Pakistan.

Relations deteriorated further after the removal of Article 370 from Kashmir

In August 2019, the Government of India decided to remove Article 370 from Kashmir, which gave special status to Jammu and Kashmir. This decision increased Pakistan's displeasure and it broke all trade relations with India. After this move of Pakistan, diplomatic relations as well as trade relations between the two countries ended.

In March 2023, Pakistan made it clear that it does not want to restore trade with India. However, this move proved to be economically harmful for Pakistan, while it did not have much impact on India.

Which goods were traded

Various goods were exchanged in trade relations between India and Pakistan. Pakistan mainly imported cotton, organic chemicals, animal feed, vegetables, plastic items, man-made fibers, coffee, tea, spices, dyes, oil seeds, dairy products and medicines from India. At the same time, India used to import copper, copper items, fruits, dry fruits, salt, sulfur, mineral fuel, wool, leather and plastic items from Pakistan.

Effect of trade ban on Pakistan

The biggest impact of the trade ban was on Pakistan. Due to the ban on import of cotton from India, Pakistan's textile industry was badly affected, which is an important part of Pakistan's economy. Apart from this, raw materials for medicines made in Pakistan were imported from India, and this trade ban led to a shortage of medicines.

Pakistan also imported certain chemicals, spices (such as cumin, coriander), and mustard from India. Due to the stoppage of supply of these goods, inflation increased in Pakistan and many industries had to be closed. Pakistan's economy was already in crisis, and this trade blockade weakened it further. As a result, many people lost their jobs and unemployment increased in the country.

Effect on India

India was not significantly affected by the trade ban with Pakistan. In India, prices of commodities like dates and rock salt from Pakistan rose, but these were replenished from other countries. In contrast, Pakistan faced difficulty in finding alternative sources for the supply of many essential commodities, especially the shortage of raw materials for cotton and medicines, making Pakistan's economic situation even more fragile.

Conclusion

Trade between India and Pakistan has been suspended since 2019, and this situation has further soured the relations between the two countries. While India has reduced its dependence on trade with Pakistan, Pakistan is facing serious economic consequences. The people and traders of Pakistan are suffering from inflation and unemployment, while its impact on India's economic stability has been very minor.

The future of trade relations between the two countries is uncertain, but in the current situation, Pakistan's economy is being affected more by this trade blockade, and India is moving forward with its alternative trading partners.