India is projected to incur trade losses of approximately $1.14 billion following Pakistan’s decision to impose restrictions on using its territory for Indian trade activities. This move comes as bilateral relations between the two countries continue to deteriorate, with economic and political tensions escalating rapidly.
According to the Pakistan Business Forum (PBF), from April 2024 to January 2025, India’s exports to Pakistan amounted to around $500 million, while imports from India were limited to just $0.42 million. The trade imbalance, coupled with restricted trade routes, has added to India’s economic challenges in the region.
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In addition, Indian goods valued at an estimated $640 million annually, which transit through Pakistan en route to Afghanistan, are expected to be disrupted. This disruption is anticipated to significantly affect India’s trade with Afghanistan and other Central Asian markets, potentially leading to further economic setbacks.
The Pakistan Business Forum has fully backed the government’s measures to counter what it describes as Indian provocations. The forum called for a complete suspension of trade relations with India until longstanding issues are resolved based on mutual respect and equality. The forum also criticized India’s suspension of the Indus Waters Treaty, labeling it as a threat to regional stability and cooperation.
Amid rising tensions, the PBF stressed the importance of national unity, resilience, and a strong focus on protecting Pakistan’s economic and political interests. The situation remains tense, with no immediate resolution in sight, as both countries harden their stances on key bilateral issues.
