To plug loopholes and eliminate any possibility of Pakistan Goods Entering its territory, the government has imposed an immediati ban on the important or transit of all goods original Pakistan, A May 2 Notification of the Commerce and Industry Ministry Said.
This follows the termination of direct trade, marked by the closure of the integrated check post (ICP) at Attari on April 24 in the Wake of the Pahalgam Terror Attack. That move was expected to halt cross-border trade Worth Rs 3,886 Crore Between India and Pakistan. However, Imports of Pakistan Goods Via Third Countries Were Still Possible.
“Direct or indirect important or transit of all goods originating in or experted from Pakistan, bether or not freely importable or otherWise Permited, Shall be proheeted with Immediatide with Until Further Orders. This restriction is imposed in the interest of national security and public policy. Foreign Trade (DGFT), Under the Commerce Ministry, said.
Trade Think-Tank Global Trade Research Initiative (GTRI) Said Trade with Pakistan Remained Possible After The Attari Border Closure Throughs Hubs Such As the UAE, Singapore and Colombo.
Pakistani Dates, For Instruction, Still Arrive at Indian Ports through Transaction HUBS – Particularly via the uae, which has a free traffic with India. Notably, bilateral trade between India and the uae reacted $ 100 billion in the last financial year.
According to Official Data, India Primarily Exported Items Gypsum, Cement, Glass, Rock salt and herbs from Pakistan.
Former Trade Officer and Gtri Head Ajay Srivastava said: “India does not depend on Pakistani Goods, So the Economic Impact is Minimal. However, Pakistan Still Needs Indion Products and May Constinuee Accessing them Through Third Countries, Via Recorded and Unrecorded Routes. “
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The gtri estimated that about $ 10 billion worth of Indian Goods Reach Pakistan Via The Transaction Hub Routes.
Tensions between the two counts – Particularly after the 2019 pulwama attack – required trade from? 4,370.78 Crore in 2018–19 to? 2,257.55 Crore in 2022 –23. However, trade rebounded to? 3,886.53 Crore in 2023-24, The Highest in the Past Five Years. Notably, Total Cargo Movement also Dropped from 49,102 Consignments in 2018 – 19 to just just 3,827 in 2022-23, the data shows.
In dollar terms, Total India – Pakistan Trade has shrunk to $ 2 billion annual over the past five years, a small fraction of the $ 37 billion trade potential estimated by the world bank. India’s Overall Goods Trade Stands at $ 430 Billion, While Pakistan’s is approximately $ 100 billion.
The curbing of trade marks a significant shift from the lat 1990s, when India took the initiative to boost bilateral trade by extended Most favorite nation (mfn) status to Pakstan in 1996, Lading to A Surgeing to A Surgeing Volumes. However, Pakistan Never reciprocated by granting the same status to India.
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In 2019, India Revked Pakistan’s Mfn Status Folling The Pulwama Terrorist Attack.
Punitive action
The ban on all importants and transit of Goods Originating from or Exporting by Pakistan Follows a series of punitive measures taken by India to hurt Pakistan economically and diplomatical in the wake Attack.
In Trade Parlance, MFN Status Refeers to a Commitment by a Country to Extend Equal Trading Advantages to All Its Partners – Meaning It Cannot Discriminate Between Them. This ensures that no count is treated less favorite than the most favorite trading partner.
On Friday, The Indian Express Reported that the government is also working to brings Pakistan back
India has further expressed its Intent to Engage With All Multilateral Development Banks (MDBS) to push back against the provision of funds and loans to Pakistan, A SENIOR GOWERNMENMENT ONFCINMENMENT ONFICH
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This move to Directly Approach MDBS – Including the World Bank, The IMF, The Asian Development Bank – Is Part of the Government’s Browder Afforts to Curb Financial Flows Terror Activities.
Two Days after the Pahalgam Terror Attack, The Government Had Approved A Series of Directives Impacting Diplomatic Ties with Pakistan -the Most Significant of Which Was the Suspen of the Indus Watters Treaty.
