Pakistan's imports from India up 69% despite trade ban
What's the story
Despite the ongoing trade ban between India and Pakistan, the latter's imports from its neighbor have skyrocketed by nearly 69% in the first quarter of FY27. According to data from the State Bank of Pakistan cited by Dawn, Islamabad imported goods worth $61.74 million (approximately ₹5,876 crore) from India between July and September this year. This is a significant jump from $36.55 million (around ₹3,478 crore) during the same period last year.
Trade imbalance
No exports to India
Interestingly, while imports from India have surged, there were no recorded exports to the country during this three-month period.
This raises questions about how Indian goods are reaching Pakistan despite the trade ban imposed by both countries after a terrorist attack in Pahalgam in April 2025.
Experts think third-country trade hubs like the UAE, Singapore, and Sri Lanka could be facilitating these transactions.
Border closure
India closed Wagah-Attari border after Pahalgam attack
The Wagah-Attari border, the only land route for bilateral trade, was closed by India after the Pahalgam attack that killed 26 people.
New Delhi also banned direct and indirect imports and transit of goods from or to Pakistan.
On May 4, 2025, Islamabad announced a suspension of all trade with India including through third countries.
Trade tactics
Traders using 3rd countries as transit points?
Despite the restrictions, Indian goods are still reaching Pakistan.
Experts believe traders may be using third countries as transit points where goods could be stored, repackaged or documented before being sent to Pakistan.
The Global Trade Research Initiative (GTRI) has called this a grey-zone trading strategy and estimates unofficial Indian exports to Pakistan could be worth $10 billion annually.
Market demand
What does Pakistan import from India?
Pharmaceuticals and raw materials are among the major Indian goods being imported by Pakistan.
According to a Reuters report, India's pharma exports to Pakistan had touched $208 million by March 2025.
Other traded items include plastics, petroleum products, dyes, organic chemicals, rubber, coffee, tea, vegetables, spices, dairy products, and cereals.
The latest figures highlight the persistent demand for Indian products in Pakistan despite political and security tensions between the two countries.