In spite of a short war and ongoing closure of borders, trade between India and Pakistan continued in May with official figures indicating that imports from India remained at a three-year peak during July-May FY25.
Imports from India amounted to $211.5 million during the first 11 months of FY25 — exceeding $207m in FY24 and $190m in FY23, based on State Bank of Pakistan (SBP) data. In May alone — when the four-day war erupted at the start of the month—imports were at $15m, which fell slightly short of $17m during the same month last year.
Pakistani exports to India, however, continued to be negligible. During May, they came in at a mere $1,000, whereas overall exports for July-May FY25 were only $0.5m. During FY24 and FY23, they were $3.44m and $0.33m, respectively, which points to the extremely asymmetrical nature of bilateral trade.
Traders shied away from commenting on the continuation of imports during the strained time. One of them proposed that the products could have come through third countries with payments already made before the hostilities.
“It could have come from a third country and the payment for the May imports would have been made before the war,” he said.
While government figures show minimal trade, Indian think tanks say actual trade is much greater. The India-based Global Trade Research Initiative (GTRI) last month said India’s unofficial exports to Pakistan stood at an estimated $10bn a year, channeled mainly through Dubai, Colombo, and Singapore.
Experts explain the unofficial trade continues to be strong because of the high cost of production in Pakistan and its industrial reliance on foreign inputs.
Official trade ties between Pakistan and India have been in limbo since 2019, but the data and ground realities indicate economic interdependence continues to exist, albeit through unofficial channels.
