Pakistan's Trade Suspension With India Cost Economy USD 40 Billion Since 2019: PIBC Chief

Pakistan has suffered estimated economic losses of USD 40 billion since suspending trade with India in 2019 following the Pulwama terror attack and subsequent escalations, Noor Muhammad Qasuri, chairman of the Pak-India Business Council (PIBC), said on Monday, calling for the restoration of bilateral commercial ties.

In a statement, Qasuri said the suspension had forced Pakistani businesses to procure essential raw materials and other goods from distant markets, increasing transportation costs, freight charges and delivery times. He said Pakistan's pharmaceutical industry, which previously relied on raw materials available in India, could save USD 2 billion to USD 3 billion annually by resuming imports from its neighbour.

The textile sector had incurred an additional expenditure of around USD 5 billion as mills were compelled to source cotton from Brazil, Egypt, China and the United States amid declining domestic production, he added. Qasuri said Pakistan was also importing sugar, fertiliser, cement, petroleum products, iron and steel, vegetables and heavy machinery from distant markets despite India's substantial production capacity in these sectors.

Resuming trade could reduce transportation costs, ensure timely supplies and lower production expenses, he said, adding that India's geographically closer oil refineries could make petroleum imports cheaper and faster. Expressing concern over the shrinking area under cotton cultivation, Qasuri said farmers in traditional cotton-growing regions were increasingly switching to sugarcane, adversely affecting the textile industry and the wider economy. He called for improved agricultural policies to revive domestic cotton production.

He said restoring commercial ties could also create opportunities for investment, tourism and regional cooperation. Pakistan could attract more Indian tourists interested in religious and historical sites, as well as their ancestral homes and villages, he added.

Citing India's financial assistance to Sri Lanka during its economic crisis, Qasuri said neighbouring countries could support one another during difficult times. He stressed that political differences should not prevent economic cooperation, arguing that outstanding disputes between India and Pakistan could be addressed through dialogue.

The two countries share historical, cultural and family ties that could provide a foundation for improved relations, he said.