Pakistan Crisis: Trade Freeze With India Costs Pakistan $40 Billion, Business Leaders Seek Revival

New Delhi: The decision to end trade relations with India is now becoming a cause of trouble for Pakistani businessmen. Chairman of Pak-India Trade Council, Noor Muhammad Kasuri has claimed that Pakistan has suffered a loss of about 40 billion dollars due to the closure of trade between the two countries. He says that due to lack of direct access to the Indian market, Pakistani businessmen have to import many essential goods from other countries. Due to this, along with the price of goods, transportation expenses have also increased. Kasuri has expressed the need to restart trade between the two countries.

When was the business closed after Pulwama attack?

After the Pulwama terrorist attack in February 2019, tension in the relations between India and Pakistan increased. India withdrew the Most Favourable Nation status given to Pakistan. After this, Pakistan also suspended trade relations with India. Normal trade between the two countries almost stopped from August 2019. This decision also affected those traders who were dependent on each other's markets for a long time. After the Pahalgam terrorist attack in April 2025, India imposed more stringent restrictions on trade related to Pakistan.

Why are pharmaceutical companies having to bear higher costs?

According to Kasuri, Pakistan's pharmaceutical industry can save 2 to 3 billion dollars every year by getting raw materials used in manufacturing of medicines from India. At present, Pakistani companies have to buy many essential materials from other countries. Due to this, the cost of import increases and production also becomes expensive. He says that due to reduction in distance between India and Pakistan, the pharmaceutical industry can directly benefit when trade is restored.

How much has the economic burden increased on the textile industry?

Pakistan's textile industry is also facing difficulties in purchasing raw materials. Kasuri said that due to decline in domestic cotton production, textile mills have to import cotton from countries like Brazil, Egypt, China and America. According to his claim, this has resulted in an additional expenditure of about 5 billion dollars on the industry. He also said that many farmers are giving priority to sugarcane cultivation instead of cotton. In such a situation, increasing the availability of domestic cotton has also become a big challenge for Pakistan.

In which import trade from India can it be profitable?

Referring to sugar, fertiliser, cement, petroleum products, iron, steel, vegetables and heavy machinery, Kasuri said that Pakistan has to depend on other countries for these items. He argues that many of these products are available in India. Once trade between the two countries starts, Pakistani companies can get goods from short distances. This can reduce the cost of transportation and also reduce the time taken for delivery.

Why did the demand for restoration of business relations intensify?

Chairman of Pak-India Trade Council says that resumption of trade can benefit not only the industries but also the businessmen and common people of both countries. He mentioned the possibilities of investment, tourism and regional cooperation. According to Kasuri, consideration should be given to keeping the avenues of economic activities open despite political differences. He also expressed the need to find solutions to pending issues through dialogue between the two countries.

Has Pakistan suffered a loss of 40 billion dollars?

The loss figure of $40 billion is an estimate given by Noor Muhammad Kasuri. This cannot be considered as the certified data of the Government of Pakistan or the final calculation of any independent agency. Similarly, the figures of possible savings of 2 to 3 billion dollars in the pharmaceutical industry and additional expenditure of 5 billion dollars on the textile industry are also based on his claims. However, the issue of dependence on alternative routes of imports and rising transportation costs following the trade closure remains a matter of concern in Pakistan's business circles.