India Considers Halting Trade with Pakistan Amidst Rising Tensions
Trade War Looms: India Weighs Halting Trade with Pakistan
India is seriously considering stopping all trade with Pakistan following recent terrorist attacks in Pahalgam. This move would significantly escalate tensions between the two countries. Experts say such a halt would deeply impact Pakistan’s economy, which relies heavily on importing essential goods like fruits, vegetables, medicines, and chemicals from India.
The Indian government is also exploring alternative trade routes and seeking help from other countries to further limit trade with Pakistan and increase the pressure. Ajay Sahai, director general of the Federation of Indian Export Organizations (FIEO), pointed out that while India’s trade with Pakistan is already small, it would come to a complete standstill, affecting the supply of crucial products to Pakistan and hurting their economy even more.
Why is India Considering This Move?
India’s decision comes after Pakistan’s recent actions, including sponsoring terrorism, which has escalated tensions between the two nations. India has already suspended the Indus Water Treaty and downgraded diplomatic ties with Pakistan in response to these attacks. Stopping trade would be another strong measure to show Pakistan the consequences of these actions.
How Would This Impact Pakistan?
Pakistan’s economy is heavily reliant on imports from India. While India’s exports to Pakistan have increased recently, even a small trade halt would be felt by Pakistan. The move could also disrupt regional economic dynamics. In 2019, India revoked Pakistan’s most favored nation (MFN) status and imposed a 200% duty on its imports, significantly impacting Pakistani exports to India.
What About Essential Goods?
Indian officials have clarified that even in this situation, essential goods like medicines would not be impacted. India’s pharmaceutical exports to Pakistan are substantial, and these exports are likely to continue.
Pakistani Response
Pakistan has reacted to India’s actions by suspending all bilateral agreements and trade activities with India. They have also closed their airspace to Indian aircraft.
Medical Tourists Caught in the Crossfire
The escalating tensions have also impacted Pakistani nationals undergoing medical treatment in India. India’s recent directive requiring all Pakistani nationals currently in India under a special visa to leave within 48 hours has caused concern for these patients. However, authorities have clarified that critically ill patients, like two young children undergoing heart surgery in Faridabad, are not subject to the 48-hour deadline and can complete their treatment.
