THIRD COUNTRY TRADE
But analysts say Pakistan’s decision to halt trade is unlikely to have a major impact, as regular diplomatic flare-ups between the two nations over decades have prevented close economic ties.
India exported less than US$450 million in goods to Pakistan between April 2024 and January 2025, a tiny fraction of its overall shipments.
Key items included pharmaceutical products worth over US$110 million, and sugar worth over US$85 million.
“Imports from Pakistan were negligible — just US$0.42 million, limited to niche items like figs, basil and rosemary herbs,” Ajay Srivastava of Global Trade Research Initiative, a New Delhi-based think tank, said in a briefing note.
But Islamabad also said Thursday it had suspended “all trade with India” including “to and from any third country through Pakistan”.
It is not immediately clear how this would impact indirect trade through countries such as the United Arab Emirates or Singapore.
Indirect trade is far higher, totalling around US$10 billion, according to Srivastava.
“Informal sources say that Pakistan imports several Indian products this way, including chemicals, pharmaceuticals, cotton and yarn,” he said.
“On the other hand, India may receive Himalayan pink salt and dry fruits such as dates, apricots, and almonds from Pakistan, also routed through third countries.”
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