Pakistan incurs $40 billion loss after 2019 India trade freeze

Pak-India Business Council Chairman Noor Muhammad Qasuri blamed rising freight charges and delivery delays for damaging Pakistan’s commercial sectors. Interrupted Indian supply lines triggered widespread disruption.

Qasuri highlighted that Pakistan’s pharmaceutical industry lost critical access to affordable Indian raw materials. Resuming these specific imports could yield up to $3 billion in annual savings.

Declining domestic production forced textile mills to buy expensive cotton from distant nations like Brazil, Egypt, China, and the United States. This shift cost the textile sector $5 billion.

Pakistani farmers are abandoning traditional cotton crops to cultivate sugarcane instead. Industry experts warn that this agricultural shift will worsen the country’s ongoing economic crisis.

Importers continue buying sugar, fertilizer, cement, petroleum, vegetables, and machinery from far markets. Pakistan ignores India’s nearby production capacity, incurring unnecessary transport fees.

Direct trade with India would immediately streamline local supply chains. Nearby Indian refineries offer significantly cheaper petroleum imports than current foreign suppliers.

Importing affordable Indian agricultural and industrial products would lower overall manufacturing expenses. Local businesses would regain competitive operating costs across multiple domestic sectors.

The trade suspension also eliminated lucrative Indian tourism revenues. Thousands previously visited ancestral villages, cultural sites, and religious landmarks across Pakistan each year.

Qasuri urged both nations to leverage their shared cultural and historical ties to rebuild commercial relations. Regional economic cooperation could stabilize Pakistan during this crisis.