Imports from India plunge 39.47pc in 1QFY20

[Chhatrapati]

Actually reducing import is generally good and rarely bad. In this case, reducing imports from India is bad for Pakistan as India supplied cheap goods which are essential for Pakistan. But, reducing imports from say, Japan by reducing imports of Toyota cars is a good thing as Toyota cars are not essentials

It is good as long as the imports are decreasing naturally because of change in local demands and those importers are now finding commodities from local market or at a cheaper rate from elsewhere. If imports are reduced through duties, import bans, etc... then it's not doing much good. Cutting imports is not smart economics it's what someone do in a crisis situation where they can't afford to pay in USD for the local demand.

Also, Japan is not in BoP crisis. They can put a futures without fear of default. Pakistan? Not so much.

 

[TheGreatMaratha]

I see both sides doing chest thumping but to be honest it's a loss for both countries here. First, India straight away lose the money they were getting when they were exporting goods to Pakistan. And from what I have read above and if it is true, India mostly exports raw materials to Pakistan at cheap prices. If Pakistan cuts down those imports, they might have to look to other countries for their needs which in turn will increase the prices of imports. Let's keep it simple: Trade benefits both countries. No trade is a loss to both countries.