Indian goods worth Rs 8538984500000 reach Pakistan without crossing border amid frozen trade through…
GH News April 28, 2025 12:06 PM
On February 14 2019 a terror attack was carried out in Jammu and Kashmir’s Pulwama resulting in the death of 40 CRPF jawans. After the deadly attack India-Pakistan tensions escalated with New Delhi hiking duties on Pakistani goods to 200 percent and removing its most favoured nation (MFN) status. Still millions of dollars of Indian goods reach Pakistan without crossing the international border. According to GTRI one of the popular methods is third-country transshipment via global ports like Dubai Singapore and Colombo. GTRI states that goods from India sent to Dubai Singapore and Colombo and stored in bonded warehouses. As the goods are in storage - still duty-free – their labels and documents are changed. The products are re-exported to Pakistan under a new country of origin—say UAE instead of India Srivastava the founder of GTRI said. Notably this system which is actually a loophole bypasses the trade restriction and also provides better prices even after re-export markups. This system allows for plausible deniability of official trade while commerce continues informally. As per GTRI Indian goods including auto parts worth USD 100000 shipped to Dubai. These goods then relabeled and re-exported to Pakistan for USD130000. While not always illegal this grey-zone strategy highlights how trade adapts faster than policy Srivastava said. Supply chains bend not break—especially when theres demand on the other side he added. Indias exports to Pakistan from April to January 2024-25 totaled approx USD447.65 million resulting in a significant trade surplus. While India imported only USD42 million worth of goods from Pakistan during the same period the Georgia Tech Research Institute (GTRI) estimates the total value of goods reaching Pakistan from various sources to be over USD10 billion.
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