Pakistan Loses $40 Billion Due to India Trade Freeze
Noor Muhammad Qasuri reports Pakistan has lost $40 billion since suspending trade with India in 2019, urging the government to decouple economic ties from political disputes.
Pakistan has incurred estimated economic losses of $40 billion since commercial ties with India were suspended in 2019 following the Pulwama terror attack. Noor Muhammad Qasuri, chairman of the Pak-India Business Council, reports that the trade freeze forced Pakistani industries to source essential raw materials, petroleum, and agricultural products from distant markets, which significantly increased freight costs and delivery times.
The pharmaceutical sector lost access to affordable Indian raw materials, missing potential annual savings of $2 billion to $3 billion. Similarly, the textile industry faced $5 billion in additional expenditures due to declining domestic cotton production and the necessity of importing from Brazil, Egypt, China, and the United States.
Beyond industrial costs, the trade suspension eliminated revenues from Indian tourists visiting religious and historical sites. Qasuri is urging the Government of Pakistan to separate economic cooperation from political disputes, arguing that geographical proximity would streamline supply chains and lower production costs. He maintains that political disagreements should be addressed through dialogue rather than economic isolation to foster regional cooperation in investment and tourism.
