Trade Between Pak-Ind Continues Despite Tensions: Imports from India Hit Three-Year High

Despite ongoing tensions and repeated border closures between Pakistan and India, trade activities have surprisingly continued, with official data revealing a significant rise in imports from India. In fact, during the first eleven months of the fiscal year 2025 (July to May), imports from India reached their highest level in the past three years.

Record-Breaking Imports from India

According to data released by the State Bank of Pakistan (SBP), imports from India totaled $215 million from July 2024 to May 2025. This marks an increase from $207 million in the same period during fiscal year 2024, and $190 million during fiscal year 2023.

Even in May 2025, when a brief four-day military standoff occurred in the first week of the month, imports from India remained steady, amounting to $15 million. This is slightly lower than $17 million recorded in May 2024, showing a modest dip but indicating continued trade despite the diplomatic unease.

Pakistan’s Exports to India Near Zero

While imports from India surged, Pakistan’s exports to India remained negligible. In May 2025, exports were recorded at only $1,000. Over the eleven-month period of the current fiscal year, total exports stood at a mere $500,000.

To put this into perspective:

• In fiscal year 2024, exports to India were $3.44 million
• In fiscal year 2023, they stood at $330,000

These figures highlight the one-sided nature of the trade relationship, with Pakistan importing significantly more from India while exporting very little in return.

Traders Remain Tight-Lipped

Traders and importers largely refrained from commenting publicly on the continuity of imports amid strained relations. However, one trader, speaking on the condition of anonymity, hinted that many of these imports may have arrived via third countries. He further speculated that payments for these goods were likely made before the recent conflict, which would explain the steady inflow of products even during heightened tensions.

He added, “It is quite possible that these consignments came through an intermediary country and that the financial transactions were completed before the escalation in May.”

Conclusion

While political and military tensions between Pakistan and India persist, trade—especially imports into Pakistan—has shown resilience. The sharp contrast between import and export figures also underscores the imbalanced trade dynamics between the two nations. The continuation of this pattern raises important questions about economic policies, trade dependencies, and diplomatic strategies in the region.