Trade barriers or not, there's just no stopping Indian goods from going to Pakistan, reveals data
According to estimates from the Global Trade Research Initiative (GTRI), more than USD 10 billion worth of Indian products make their way to Pakistan through third-party trade routes. Following the brutal terror attacks in Pahalgam, which resulted in the loss of 26 lives, GTRI noted that businesses have started utilising ports in Dubai, Singapore, and Colombo to facilitate the movement of Indian goods to Pakistan, thereby circumventing trade restrictions.
The GTRI report highlighted that these routes enable Indian merchandise to enter Pakistan despite the existing trade barriers. "GTRI estimates that India exports goods valued at over USD 10 billion to Pakistan annually via this channel," the report said.
To elaborate on the innovative strategies employed by exporters, the GTRI explained that Indian companies ship their products to these intermediary ports. There, an independent company receives the shipments and stores the goods in bonded warehouses, which are facilities that allow for duty-free storage while the items are in transit.
Within these bonded warehouses, the labels and documentation are altered to reflect a different country of origin. For instance, products manufactured in India may be rebranded as "Made in UAE." Following this relabeling process, these items can then be shipped to Pakistan, where direct trade with India is prohibited.
