India-Pakistan Trade Update: Ban on Indirect Trade Considered
The ban is aimed at preventing the entry of Pakistani goods into India through intermediary nations, and is part of a broader effort by India to restrict trade with Pakistan. The move is likely to have significant implications for the economies of both countries, and may lead to further escalation of tensions between them.
India is considering a complete ban on direct and indirect trade with Pakistan due to concerns over $500 million worth of Pakistani goods entering the country via intermediary nations, including the UAE, Singapore, Indonesia, and Sri Lanka.
The goods, including dry fruits and chemicals, are being channelled through these countries, with the UAE reportedly used as a repackaging and relabelling point for Pakistani products. An official emphasized the need for a comprehensive ban to prevent exports from entering India through origin manipulation. This move comes amid heightened tensions between the two nations, following a terror attack and a previous ban on direct trade imposed in 2019.
The tensions between India and Pakistan have been escalating, with both countries imposing various restrictions on each other. India has frozen imports from Pakistan, suspended postal links, and prohibited ships with Pakistani flags from docking in Indian ports. Pakistan has also taken retaliatory measures, including banning the use of its ports by Indian flag carriers and announcing that it would not allow Indian-flagged ships to visit its ports.
The situation between India and Pakistan remains volatile, with both countries engaging in a series of tit-for-tat measures. The proposed ban on indirect trade is likely to further strain relations between the two nations, and it remains to be seen how the situation will unfold in the coming days.