Pakistan lost USD 40 billion after India trade suspension, business body says

Pakistan has suffered an estimated economic loss of USD 40 billion since trade with India was suspended in 2019 following the Pulwama terror attack and subsequent tensions, Press Trust of India reported, citing the head of a business advocacy group.

Pak-India Business Council chairman Noor Muhammad Qasuri called on the two countries to restore commercial ties, saying the move would benefit businesses on both sides and create opportunities for investment, tourism and regional cooperation.

In a statement, Qasuri said the suspension of trade had forced Pakistani businesses to import essential raw materials and other goods from distant markets, increasing transport and freight costs as well as delivery times.

Pakistan's pharmaceutical industry depended on raw materials available in India, he said. Imports from India could help the industry save between USD 2 billion and USD 3 billion annually, according to PTI.

Qasuri said the textile sector had also faced additional costs amid a decline in domestic cotton production. Textile mills had been forced to buy cotton from Brazil, Egypt, China and the United States, leading to an estimated additional expenditure of USD 5 billion.

Pakistan was also importing sugar, fertiliser, cement, petroleum products, iron and steel, vegetables and heavy machinery from distant markets despite India's substantial production capacity in these sectors, he said.

Qasuri said restoring bilateral trade could reduce transport costs and ensure timely supplies. Indian oil refineries were geographically closer to Pakistan, making petroleum imports potentially cheaper and faster. Access to Indian agricultural and industrial products could also help Pakistani businesses lower production costs, he added.

Expressing concern over the decline in the area under cotton cultivation, Qasuri said farmers in traditional cotton-growing regions were increasingly switching to sugarcane, affecting the country's textile industry and the wider economy. He called for better agricultural policies to revive domestic cotton production.

Qasuri said renewed trade would benefit businesses in both countries and open up opportunities for investment, tourism and regional cooperation. Pakistan could also attract more Indian tourists, particularly those wishing to visit religious and historical sites or their ancestral homes and villages.

Referring to regional economic cooperation, he cited India's financial assistance to Sri Lanka during its economic crisis as an example of how neighbouring countries could support each other in difficult times.

Qasuri said political differences should not stop Pakistan and India from exploring economic opportunities, adding that outstanding disputes could be addressed through dialogue. “Pakistan and India share historical, cultural and family ties, which could provide a foundation for improved relations,” PTI quoted him as saying.

Qasuri reiterated that restoring India-Pakistan trade could reduce import costs for Pakistani businesses while promoting investment, tourism and wider regional cooperation.

With PTI Inputs

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