India-Pakistan trade faces new blow after Kashmir attack, diplomatic rift
NEW DELHI/ISLAMABAD, April 25 (Reuters) - India and Pakistan's reciprocal actions following the killing of 26 men by suspected militants at a tourist spot in Kashmir are set to further curtail trade, which has more than halved since 2018, trade analysts and exporters said.
Here are key trade issues between the two countries:
BILATERAL TRADE
India-Pakistan trade relations deteriorated following the suspension of diplomatic ties in 2019 after India conducted a military strike in Pakistan in retaliation for a suicide bombing by militants in Kashmir that killed at least 40 Indian paramilitary police. Bilateral trade fell to $1.2 billion in 2024 from a peak of nearly $3 billion in 2018.
India exported about $500 million worth of goods to Pakistan during the April 2024-January 2025 period, mostly pharmaceuticals, chemicals, sugar and auto parts, while imports stood at just $0.42 million, Indian trade ministry data showed.
Islamabad on Thursday closed its air space for Indian airlines and suspended all trade ties with India - including routes through third countries and transit of goods to other nations - after India closed the Attari check post, a key trade route with Pakistan, a day earlier.
This will have a negative impact particularly on Pakistan's pharma sector, if supplies from India are affected, said Ehsan Malik, CEO of Pakistan Business Council.
