TRADE WITH THIRD COUNTRIES
Experts suggest that Pakistan’s choice to stop trade is unlikely to significantly affect the situation, as ongoing diplomatic tensions between the two countries have hindered strong economic relationships over many years.
From April 2024 to January 2025, India sold under US$450 million worth of goods to Pakistan, which is a mere fraction of its total exports.
Some of the main exports included pharmaceuticals exceeding US$110 million and sugar amounting to over US$85 million.
According to Ajay Srivastava from the Global Trade Research Initiative in New Delhi, “Imports from Pakistan were minimal—only US$0.42 million, mostly consisting of niche products like figs, basil, and rosemary.”
On Thursday, Islamabad announced it has halted “all trade with India,” which also affects trade “to and from any third country through Pakistan.”
The immediate effects on indirect trade via nations like the United Arab Emirates or Singapore remain unclear.
However, according to Srivastava, indirect trade is much larger, estimated to be around US$10 billion.
“Informal reports indicate that Pakistan acquires a variety of Indian goods this way, such as chemicals, pharmaceuticals, cotton, and yarn,” he noted.
“Conversely, India might import Himalayan pink salt and dry fruits like dates, apricots, and almonds from Pakistan, also through third countries.”
