Despite trade ban, Pakistan imports from India jump 2x in April-May

[INDIAPOSITIVE]

https://twitter.com/x/status/1551803388454547456

India in February 2019 had withdrawn the most-favoured-nation (MFN) status for Pakistan and imposed a 200 per cent tariff on all imports from Pakistan after the Pulwama terror attack

Coinciding with the change in government in Pakistan in April, the country ramped up its imports from India despite Islamabad’s ban on trade with its eastern neighbour.

India’s exports to Pakistan more than doubled to $142 million in the April-May period, from $70 million during the same period a year ago, trade data available on the commerce ministry website showed. There were sugar exports worth $86 million during the period under review.

During the first two months of FY23, Pakistan imported 282 items from India, of which 67 were pharmaceutical products. Besides sugar and pharmaceutical products, Pakistan imported organic chemicals, apparel and textiles, mineral fuels, coffee, tea, spices, rubber, fruits and vegetables, plastics, iron and steel, and matchboxes, among others.

The president of Pakistan Muslim League-Nawaz (PML-N), Shehbaz Sharif, took over as prime minister of Pakistan on April 11, after the Imran Khan-led Pakistan Tehreek-e-Insaf (PTI) government was ousted from power following the no-confidence motion in the National Assembly.

In May, the new Pakistan government appointed a senior official as “trade minister” in the Pakistan embassy in New Delhi. However, Pakistan’s Dawn newspaper reported, quoting unnamed officials, that the appointment was routine and “there is no change in Pakistan’s policy on trade with India”.

After India revoked the special status of Jammu and Kashmir in August 2019 by removing sections of Article 370, the Imran Khan government suspended all kinds of trade with India. But after the coronavirus pandemic, Pakistan allowed the import of drugs and pharmaceuticals from India in May 2020.

India in February 2019 had withdrawn the most-favoured-nation (MFN) status for Pakistan and imposed a 200 per cent tariff on all imports from Pakistan after the Pulwama terror attack. But it didn’t ban either exports or imports to Pakistan. While total trade between the two countries stood at $2.6 billion in FY19 before disruptions, it plunged to $831 million, $329 million, and $516 million in FY20, FY21, and FY22, respectively. There were negligible imports by India from Pakistan.

In March 2021, the Economic Coordination Committee chaired by then Pakistan finance minister decided to allow the import of sugar and cotton from India amid soaring domestic prices. But the decision was reversed by the Pakistani Cabinet in less than 24 hours following political backlash. Nisha Taneja, professor and lead for trade, investment and external relations (TIER) at the New Delhi-based think tank Indian Council for Research on International Economic Relations (ICRIER), said the fact that trade was taking place in a number of items showed that there remained a strong interdependence between the two countries. “Going forward, this lays the ground for opening up of trade which will benefit both countries. A cautious approach would be for the two countries to start with a positive list and then expand it gradually,” she said.

Another trade expert said the Pakistan government is overlooking imports from India because the country desperately needs those items. “Exports from India is happening because Pakistan is permitting those items to come in. Trade is going to continue. It seems both countries will normalise their trade relationship after the general elections in India in 2024,” he added.

The Sharif government announced a complete ban on the export of sugar from Pakistan in May amid soaring food prices in the country. Pakistan averted bankruptcy by striking a $6-billion deal with the International Monetary Fund earlier this month.

Despite trade ban, Pakistan imports from India jump 2x in April-May

The Shehbaz Sharif-led govt named a senior official 'trade minister' in Pakistan's New Delhi embassy in May

www.business-standard.com

 

[Wood]

It is surprising to see that 'Apparels' are exported to Pakistan from India. It is not an essential commodity after all

 

[LakeHawk180]

It is surprising to see that 'Apparels' are exported to Pakistan from India. It is not an essential commodity after all

I see ‘matchboxes’ as a special mention in there.

 

[Black Tornado]

Thanks @Norwegian

 

[SQ8]

Simply because India is ten times more efficient in management of its agriculture than Pakistan is.
Although Pharma is a very big Indian export worldwide and not just Pakistan

 

[NAVDEEP DHALIWAL]

Is it possible, other things being traded under wrong categories?

I know 4 sure in our punjab smuggled pakistani cement and Basmati rice can be found. I really love the quality of it, the aroma is soon gud.

 

[my2cents]

It is surprising to see that 'Apparels' are exported to Pakistan from India. It is not an essential commodity after all

They even imported match boxes.

 

[my2cents]

Simply because India is ten times more efficient in management of its agriculture than Pakistan is.
Although Pharma is a very big Indian export worldwide and not just Pakistan

What strikes me as a lay man is that Pakistan has no cohesive policy towards India. It is more a knee jerk reaction. If you imposed a ban on Indian imports, then you need an plan of action to either manufacture same products in your country or find a cheaper place to import from. Every time a new government comes to power, they reverse what was done before.

 

[SaadH]

Neutrals paying their masters back in double, no surprises here.

 

[-blitzkrieg-]

https://twitter.com/x/status/1551803388454547456

India in February 2019 had withdrawn the most-favoured-nation (MFN) status for Pakistan and imposed a 200 per cent tariff on all imports from Pakistan after the Pulwama terror attack

Coinciding with the change in government in Pakistan in April, the country ramped up its imports from India despite Islamabad’s ban on trade with its eastern neighbour.

India’s exports to Pakistan more than doubled to $142 million in the April-May period, from $70 million during the same period a year ago, trade data available on the commerce ministry website showed. There were sugar exports worth $86 million during the period under review.

During the first two months of FY23, Pakistan imported 282 items from India, of which 67 were pharmaceutical products. Besides sugar and pharmaceutical products, Pakistan imported organic chemicals, apparel and textiles, mineral fuels, coffee, tea, spices, rubber, fruits and vegetables, plastics, iron and steel, and matchboxes, among others.

The president of Pakistan Muslim League-Nawaz (PML-N), Shehbaz Sharif, took over as prime minister of Pakistan on April 11, after the Imran Khan-led Pakistan Tehreek-e-Insaf (PTI) government was ousted from power following the no-confidence motion in the National Assembly.

In May, the new Pakistan government appointed a senior official as “trade minister” in the Pakistan embassy in New Delhi. However, Pakistan’s Dawn newspaper reported, quoting unnamed officials, that the appointment was routine and “there is no change in Pakistan’s policy on trade with India”.

After India revoked the special status of Jammu and Kashmir in August 2019 by removing sections of Article 370, the Imran Khan government suspended all kinds of trade with India. But after the coronavirus pandemic, Pakistan allowed the import of drugs and pharmaceuticals from India in May 2020.

India in February 2019 had withdrawn the most-favoured-nation (MFN) status for Pakistan and imposed a 200 per cent tariff on all imports from Pakistan after the Pulwama terror attack. But it didn’t ban either exports or imports to Pakistan. While total trade between the two countries stood at $2.6 billion in FY19 before disruptions, it plunged to $831 million, $329 million, and $516 million in FY20, FY21, and FY22, respectively. There were negligible imports by India from Pakistan.

In March 2021, the Economic Coordination Committee chaired by then Pakistan finance minister decided to allow the import of sugar and cotton from India amid soaring domestic prices. But the decision was reversed by the Pakistani Cabinet in less than 24 hours following political backlash. Nisha Taneja, professor and lead for trade, investment and external relations (TIER) at the New Delhi-based think tank Indian Council for Research on International Economic Relations (ICRIER), said the fact that trade was taking place in a number of items showed that there remained a strong interdependence between the two countries. “Going forward, this lays the ground for opening up of trade which will benefit both countries. A cautious approach would be for the two countries to start with a positive list and then expand it gradually,” she said.

Another trade expert said the Pakistan government is overlooking imports from India because the country desperately needs those items. “Exports from India is happening because Pakistan is permitting those items to come in. Trade is going to continue. It seems both countries will normalise their trade relationship after the general elections in India in 2024,” he added.

The Sharif government announced a complete ban on the export of sugar from Pakistan in May amid soaring food prices in the country. Pakistan averted bankruptcy by striking a $6-billion deal with the International Monetary Fund earlier this month.

Despite trade ban, Pakistan imports from India jump 2x in April-May

The Shehbaz Sharif-led govt named a senior official 'trade minister' in Pakistan's New Delhi embassy in May

www.business-standard.com

Rest assured this is going nowhere.

 

[satyamev]

nice. build their dependence on our high quality products.
Indian products are well received in Pakistan. Speaking from personal experience.

 

[VkdIndian]

In these times ensuring one’s own economic well being comes before politics. It isn’t very smart to do business unfavourably even at the cost of doing it with an adversary.
Examples - Israel with Middle East, Taiwan with China, India with China and many more.
Any change in trade relations shouldn’t hurt your own economy. Play your strengths and not otherwise.

 

[SQ8]

What strikes me as a lay man is that Pakistan has no cohesive policy towards India. It is more a knee jerk reaction. If you imposed a ban on Indian imports, then you need an plan of action to either manufacture same products in your country or find a cheaper place to import from. Every time a new government comes to power, they reverse what was done before.

Pakistan doesn’t have a cohesive policy regarding anything because the institutions never fully developed due to an unstable governance system since its inception. More importantly, where Indian leadership had policy differences they always had the same target with socioeconomic policy(industry, agriculture, services, education etc) . So even if governments did change, the basic “Ten Commandments” of Indian policy remained similar.

Pakistan on the other hand either had fighting feudals or generals - neither qualified nor focused on merit to let the right people come up.
Infact, a LOT of the India-Pakistan comparison we see online is flawed even if one completely forgets the disparity of size. Simply because India is where it is due to the efforts of its leadership(credit due to the Nehru clan for its dynasty still maintaining some semblance of merit) while Pakistan is still here despite the best efforts of its leadership to destroy it for their own interests.

 

[satyamev]

Pakistan doesn’t have a cohesive policy regarding anything because the institutions never fully developed due to an unstable governance system since its inception. More importantly, where Indian leadership had policy differences they always had the same target with socioeconomic policy(industry, agriculture, services, education etc) . So even if governments did change, the basic “Ten Commandments” of Indian policy remained similar.

Pakistan on the other hand either had fighting feudals or generals - neither qualified nor focused on merit to let the right people come up.
Infact, a LOT of the India-Pakistan comparison we see online is flawed even if one completely forgets the disparity of size. Simply because India is where it is due to the efforts of its leadership(credit due to the Nehru clan for its dynasty still maintaining some semblance of merit) while Pakistan is still here despite the best efforts of its leadership to destroy it for their own interests.

but a average lower class Pakistani still enjoys a better living standard because -
1. historically Pakistan didn't have the absolute wretched poverty that India had in many parts post independence. Except in maybe small parts of sind. Till the 60s India was facing food shortages and famines.
2. Lower population density, so load on resources was lower.
3. A much higher proportion of labour class earning abroad and sending remittances home.

A leader with vision could have developed Pakistan into one of the Asian tigers.

 

[SQ8]

but a average lower class Pakistani still enjoys a better living standard because -
1. historically Pakistan didn't have the absolute wretched poverty that India had in many parts post independence. Except in maybe small parts of sind. Till the 60s India was facing food shortages and famines.
2. Lower population density, so load on resources was lower.
3. A much higher proportion of labour class earning abroad and sending remittances home.

A leader with vision could have developed Pakistan into one of the Asian tigers.

leaders with consistent vision -

Take INC - their polices have been pretty persistent.. but even BJP never wiped out INCs policy or did a U-turn— at worst flowing parallel to the pre-existing track